Arnold Bloch Leibler partner to mediate West Gate Tunnel fight between Transurban, government
A question mark is hovering over the Andrews Government’s prized West Gate Tunnel project, with builders telling Transurban they probably won’t be able to finish construction by the 2022 completion date.
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Transurban chief Scott Charlton says he believes the West Gate Tunnel can be completed by 2022 but has warned investors there is “pressure” on the build schedule which it has placed under review.
Mr Charlton has also said the builders of the $6.7 billion West Gate Tunnel project have told the toll road giant they do not believe they can finish it by the agreed deadline.
The West Gate Tunnel project has been thrown into chaos after its builders said they were walking away from their contract with Transurban over issues including PFAS-contaminated soil.
“We believe it is possible at this point to deliver the job by 2022 but there are pressures on the schedule,” Mr Charlton said this morning.
Mr Charlton said issues around how to handle the contaminated soil needed to be resolved “over the next few months” otherwise it would represent a “critical” challenge to the project’s deadline.
“Hopefully, hopefully we will have a technical solution in the next few months but some of this is out of our control,” he said.
“We’re currently reviewing the project, the contractor has informed us that the project is unlikely to be completed by the end of 2022 and there is pressure on the project schedule.”
It comes amid the revelation that a hired legal gun who helped the Andrews Government break the East West Link contract has been called in to get the troubled project back on track.
The Herald Sun can reveal Arnold Bloch Leibler partner Leon Zwier has been tasked with repairing the government’s fractured relationship with Transurban, which is contracted to deliver the $6.7 billion project.
Work on Melbourne’s second western river crossing was thrown into chaos last month when the toll road giant’s builders said they were walking away from their contract over issues including PFAS-contaminated soil.
The government has now moved to bring in Mr Zwier to ensure its contract with Transurban is fulfilled and the new toll road is finished by its 2022 deadline.
It comes as Transurban prepares to release its half-year results on Tuesday, which will likely indicate how the company plans to sort out the dispute which has already delayed major tunnelling works by six months.
A state government spokeswoman said on Monday night that construction was continuing on the project.
“The government has a contract with Transurban to deliver the West Gate Tunnel by 2022 — and the government will be holding Transurban to that contract,” she said.
Premier Daniel Andrews has threatened to revisit the generous concession deed negotiated with Transurban — which will deliver the company a $37 billion windfall — if it does not meet the terms of its contract with the government.
Mr Zwier has previously acted for former federal Labor leader Bill Shorten and was brought in by the Andrews Government in 2015 when it was trying to rip up the East West Link contract.
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While the legal battle continues, the government has been working with Transurban and the construction consortium to lock in a landfill site where the contaminated soil can be dumped.
It is understood the Environment Protection Authority has issued several classifications for soil disposal, which has already allowed for some soil to be moved to existing landfill sites.
“Transurban and its builder are working with their project partners and the EPA, to find a long-term solution to manage the rock and soil that will be created during tunnelling so that tunnelling can start as soon as it can,” a project spokeswoman said.