Transurban announces West Gate Tunnel now expected to be finished by 2023
Transurban could lose millions of dollars every day construction of the West Gate Tunnel is pushed back, with the company announcing a new finish date for the works.
VIC News
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Transport Infrastructure Minister Jacinta Allan has warned Transurban could lose millions of dollars for every day that is late to meet its deadline for the West Gate Tunnel.
Construction of the $6.7 billion project is now expected a year later than planned, with Transurban announcing a new finish date of 2023,
In a message to investors, the toll giant revealed the new timing of the project as it continues to work through issues that have delayed digging.
It was initially slated to be finished by 2022.
Massive tunnel boring machines are yet to be turned on as the builders search for a site to dispose of soil contaminated with industrial chemical PFAS and asbestos.
Ms Allan said coronavirus restrictions had added to delays but the Andrews Government would hold the tolling company to its deadline.
“What is contained in that contract is that for every day that this project is not completed beyond 2022 Transurban lose millions of dollars,” she said.
This money could come to the government from toll revenue the company would no longer receive on the new road or through other financial penalties.
“The government’s message back to Transurban is really clear,” Ms Allan said.
“You’ve got to get on (and) resolve the dispute with builders CPB and John Holland, resolve the disposal of the soil from the tunnel boring activities, get those tunnel boring machines going as quickly as possible and honour the commitment and the contract that Transurban has signed with the Victorian Government and the Victorian community.”
Ms Allan said the government would not wear additional costs that may arise from the delays.
“It is a fixed-price contract,” she said.
Only a handful of locations are allowed to handle the toxic dirt and businesses are currently working with the government and the consortium building the project to find a solution.
“Commencement of tunnelling requires resolution on a range of matters, including disposal site confirmation, preparatory works, achieving relevant approvals and resolving commercial matter,” Transurban told investors on Monday morning.
“We remain committed to working with the state and the design and construction subcontractor to resolve the tunnelling issues.
“Proposed disposal sites are working through requirements to gain necessary planning and environmental approvals.
“Progress continues on site with over 15 million working hours on the project.”
Maddingley Brown Coal has been floated as a potential site for the soil although this has been met with opposition from Bacchus Marsh residents and a nearby school.
Transport Infrastructure Minister Jacinta Allan will speak about the announcement later today.
Transurban also told investors that it had received documents from the project’s builders seeking to tear up its contract under a “force majeure” event related to the toxic soil.
But they also indicated works will continue on site and the toll company has advised that it still considers the current contract to be valid.
The dispute is set to spill over into expensive legal battle over cost blowouts and project deadlines.
Contractors on the project first flagged contract issues in 2019 as further testing revealed higher amounts of PFAS-contaminated soil would need to be disposed of at facilities approved by the Environment Protection Authority.
The builders told Transurban that delays and difficulties in finding a location and moving the soil were costing them financially.
More than 100 tunnelling workers have been laid off from the project.
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