Deputy Opposition leader Gerard Maley wants Public Accounts Committee to scrutinise shiplift cost blow-out

The Opposition wants the $400m cost blow-out on the shiplift project to be scrutinised by a government committee.

The CLP wants NT Parliament’s Public Accounts Committee to scrutinise the $400m cost blow-out to build Darwin’s long-awaited shiplift.

Deputy Opposition leader Gerard Maley said the shiplift cost had blown-out from about $100m when it was first being considered by the previous CLP government to $515m when the preferred bidder was announced this year.

The NT government initially quoted $400m as the cost to build the shiplift, with that figure soaring by more than 20 per cent when it announced in June that Clough Group and BMD had been selected as successful co-bidders for the project.

However, Mr Maley said the cost of the project and the request last week by Clough to be placed in voluntary administration had raised question marks about the project.

Deputy Opposition leader Gerard Maley

“This is about value for money for Territorians,” he said.

“We know the cost has already blown-out from $100m up to $515m which means the NT government is going to have to chip in an extra $200m of taxpayers’ money.

“We want to make sure there’s some scrutiny in relation to this because it’s a project that hasn’t even started yet and the costs have gone at least $200m more and I predict the eventual project will be a lot more than that.

“The committee can call a review, do public hearings and just make sure the costs are capped as best they can because we all know there could be some blowouts but once the project’s started it will be very difficult to cap the cost and keep a handle on the costs.

“This committee can go about public hearings, make sure the projects are kept in check as much as they can be.

“The CLP supports the project but we need to make sure that there’s value for money for Territorians whenever it is finished into the future.”

The commonwealth’s Northern Australia Infrastructure Facility (NAIF) has contributed $300m to the shiplift cost, with the remaining $215m being bankrolled by the Territory taxpayer.

Mr Maley has written to Joel Bowden, chairman of the Public Accounts Committee, stating the collapse of Clough Group added uncertainty and potentially political costs to taxpayers.

“It is vital that the ship lift project provide value for Territorians, particularly since $200m of our money is being used for the project,” he said.

The PAC has five members; three from the government (Mr Bowden, Lawrence Costa and Brent Potter), one from Opposition (Bill Yan) and an independent MLA (Robyn Lambley).

Inquiries to the committee can be referred by the committee chair or membership but referrals require a majority committee vote, which means it needs government support.

Chief Minister Natasha Fyles said Monday afternoon there would be no PAC probe.

“We are 100 per cent committed to delivering this project,” Ms Fyles said. “The Department of Infrastructure, Planning and Logistics is continuing to work to a solution to inform the best approach for the Northern Territory in relation to the shiplift project.

“Preparation works for the shiplift are now complete. As such, there are no works happening on site. The early works included surveys, ground testing as well as checking for and safely removing any objects that may interfere with the build, including unexploded ordinances. “Further site works will begin in early to mid 2023.

“Other work being undertaken includes detailed design, in anticipation of full construction starting in 2023, as well as finalising environmental approvals.

“There is no need for this job creating project to go towards the Public Accounts Committee – as a Government we are working through a solution.”

GOVERNMENT CONFIDENT ON SHIPLIFT DESPITE ADMINISTRATION

The NT Government is confident the $515m Territory ship-lift project is still on track despite the collapse of one of the key joint-venture partner’s.

Western Australian construction company Clough requested voluntary administration last week after a merger deal with an Italian company fell through.

The collapse left up to $10bn worth of federal, state and territory government projects stranded, including the Territory Government’s long-anticipated shiplift project.

The Darwin shiplift has been on government books since 2014 but has been a slow-burn project and it took the government until July this year to secure a joint-venture partnership between Clough and BMD.

Chief Minister Natasha Files, Infrastructure Commissioner for the NT Louise McCormick and Minister Eva Lawler at the site of the planned ship Lift at East Arm. Picture: Glenn Campbell

In the process the cost blew-out from an estimated $400m to $515m.

At the time, Infrastructure Minister Eva Lawler praised the joint venture partners.

“The preferred contractor, Clough-BMD Joint Venture, has demonstrated experience in delivering significant projects in the Territory and we will negotiate with them over the coming weeks to finalise the design and construct contract,” she said.

Work finally began in September – including a brief delay after work crews identified an unexploded bomb in Darwin Harbour.

Chief Minister Natasha Fyles said the government was working through the implications of Clough’s corporate collapse.

“Clough’s a joint venture partner with BMD and so we’re just working through what that means,” she said. “This is just one of a number of projects that have been impacted by the decision over what’s happened this week.

“To reassure Territorians this is a joint venture. It’s a significant project and we pay as we receive those services and as the work is done so there’s not a considerable risk from the Territory taxpayer dollar in that sense but we’re certainly working through what this means for this specific project.

Chief Minister Natasha Fyles at East Arm where exploratory works have begun for the ship lift. Picture: (A)manda Parkinson

“Obviously we’ve got timelines that we’re keen to see achieved so all of that is being worked through in the wake of the announcement.”

Long-standing Darwin-based company Territoria Civil was the non-preferred tenderer for the shiplift project but for the time being the Government is sticking with its JV-selection.

“We’ve chosen the tender and that’s been put in place. All of this has just been worked through around the announcement earlier this week,” Ms Fyles said.

“My understanding is we have entered into a tender arrangement and the works had begun but we don’t simply hand over that chunk of money and we’ve worked through the milestones that have to be reached.

“But we’re just working through what this means in terms of the administration and sometimes companies can trade their way out of administration. I don’t know the specifics of this but we’re certainly working through everything.

“This went through a very strict due diligence process and I’ve got no reason to have any uncertainty around that.”