Coomera Connector faces a $864m budget blowout as state admits cost pressures
Premier Steven Miles has delivered a stern message to critics of an almost $1 billion blow-out in the cost of the Coomera Connector, defending the road as ‘value for money’. Read what he said.
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Queensland Premier Steven Miles has hit back at critics of the Coomera Connector cost blow-out, saying it either gets paid or the road doesn’t get built.
On Tuesday it was revealed costs on the project had blown out by $864 million, with the state seeking a $432m matching contribution from the Commonwealth to meet the cost increase.
Bonney MP Sam O’Connor said he was concerned the project would be “at risk” if the Commonwealth didn’t “come to the state’s rescue”.
However Mr Miles said the state government was committed to seeing the road built.
“I think every single person who drives between Brisbane and the Gold Coast would agree that that road is value for money,” he said.
“The fact is, the cost of materials have escalated these last couple of years and that has necessarily flowed through to costs.
“But the choice is you deliver the projects at what they cost or you cut them.
“Our commitment to people who live on or commute to and from the Gold Coast is we will build that road.
“Because it is absolutely critical.”
Mr Miles said the cost increase on the project was unavoidable.
“Anyone who says that they won’t spend what the road will cost is saying they will cut it.
Every single project right around the world is seeing cost escalation. That is unavoidable.
The choice is, do you build it, or do you cut it. And we are a government that builds it.”
FEARS SECOND M1 WON’T BE COMPLETED
Some of the factors leading to the $864 million blowout in the Coomera Connector would have been known for more than a year, the state opposition says.
The state government on Tuesday confirmed it would seek a $432m matching contribution from the Commonwealth to meet the cost increases on Queensland’s biggest road project.
The opposition fears the motorway project, dubbed the second M1, is at risk of not being completed, with the cost factors hidden as the state reacted to community concerns about design and environmental issues.
The government also confirmed another delay with the Stage 1 North to open progressively from late 2025 instead of later this year.
The Bulletin has been given a breakdown in costs increases which shows:
* almost $30m for new noise barriers.
* about $37m for the increase from four to six lanes in the Central package
* $21m for the Nerang River bridge structure.
* $115m for environmental approvals and impacts from conditions set.
Bonney LNP MP Sam O’Connor along with industry sources believe the Transport Department would have known about some of the potential cost blowouts.
“I think they are concerned the federal government won’t come and bail them out again. I’m very worried about that as well, because it is putting the project at risk,” Mr O’Connor said.
“I’m concerned they won’t come to the state’s rescue.”
In March last year, the state government began the earth works at Hope Island where then Transport Minister Mark Bailey announced the Coomera Connector would be “six lanes in its busiest sections” as part of a $2.16 billion project.
Mr O’Connor said the state government clearly knew what these costs were a year ago.
“Some of the things they are attributing to the blowout, they announced more than 12 months ago,” he said.
“How did they not factor the costs in. They clearly knew. And even as recently as three weeks ago, when the new minister (Bart) Mellish was announcing the long awaited designs for Stage One Central, he still had the figure of $2.16 billion. You can’t tell me they have just come up with this in the last three weeks.”
Mr O’Connor said it was ridiculous not to include the Nerang River bridge costs.
“We had a river at Nerang when we did the business case. The Nerang River was there. The only way you are going to run over a river is with a bridge,” he said.
Mr O’Connor also said the government had taken a “ridiculously long time” to submit their environmental case.
“They have had the final tick-off from the federal government environmentally since May last year,” he said.
“So I don’t know why any unforeseen costs would have come up closer to 12 months ago when they got approval. It doesn’t add up they are finding out about them now.”
Mr Mellish said the $432 million matching contribution from the federal government would be considered in the upcoming federal budget in May.
“Cost increases are not unexpected in the current economic climate, and the Coomera Connector project is not immune to these pressures,” he said.
“We have committed our share of this additional cost because we recognise how critical the Coomera Connector is not only for South East Queensland, but also our state’s economic prosperity.”
COOMERA CONNECTOR FACES NEAR-BILLION DOLLAR BUDGET BLOWOUT
The cost of the Coomera Connector motorway project has blown out by $864 million.
The Queensland government says it will seek a $432 million matching contribution from the Commonwealth, which is to be considered in the May federal budget.
The blowout has been blamed on the rising cost of labour and materials, and the industry supply and demand challenges for specialist construction equipment.
The state government says some of the cost pressures for Stage 1 of the project are due to double-digit market escalation and inflation since the business case was approved in 2021 and the location of contamination including PFAS and asbestos on site.
Other factors include changes to design standards, evolving scope of works through the design process such as making the Central package six lanes, increased scope of environmental investigations and management plans and the adverse ground conditions.
The government says it is committed to the project and Stage 1 North will open progressively from late 2025.
But the Opposition says the financial blowouts place uncertainty about delivering the project which has doubled in cost.
Transport Minister Bart Mellish downplayed the financial outcome.
He said the Coomera Connector would provide significant benefits, helping to ease traffic congestion between the Gold Coast and Logan and enable locals to avoid the M1, and to make shorter and easier trips.
“Cost increases are not unexpected in the current economic climate, and the Coomera
Connector project is not immune to these pressures,” he said.
“We have committed our share of this additional cost because we recognise how critical the
Coomera Connector is not only for South East Queensland, but also our state’s economic
prosperity.”
Deputy Opposition leader Jarrod Bleijie on the Coast likened the new Minister to former Transport Minister Mark Bailey given recent infrastructure project blowouts.
“Like we had with Bailey, we now have got budget blowout Bart,” Mr Bleijie said.
The Government last year indicated the Coomera Connector would open in mid-2024 but that date was now being extended to late next year, he added.
“Everything Bart Mellish and the Labor Government touches blows out,” Mr Bleijie said.
Bonney MP Sam O’Connor said motorists would face a 15-minute longer drive to get access to their homes after connection points were removed.
“What this means for Gold Coasters is we are going to be stuck in traffic longer. We are paying more under Labor and getting less,” he said.
The Bulletin in an exclusive report two years ago revealed the Coomera Connector would be four lanes and not the six lanes originally intended for the project, dubbed the second M1.
An Infrastructure Australia assessment of the new highway, to be built between Nerang and Coomera and eventually finishing in Logan, also showed a blowout in costs.
The state opposition at the time accused the government of a “four-lane fraud” and claimed its “dodgy Best Practice Principles policy” had caused the $600m blow out in costs.
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