Sydney light rail project cost blows out by another $154 million

A scathing new Auditor-General’s report says the cost of the Light Rail has blown out to almost double the originally-estimated price — do you think it’s worth the $3.1b price tag? LET US KNOW WHAT YOU THINK.

• Food courts open, more people in homes as COVID restrictions ease
• $800k grant for golf club run by former Liberal staffer

The state government failed to regularly update the true cost of the troubled Light Rail project, which will now “exceed $3.1 billion,” a scathing Auditor General’s report has found.

The $3.15 billion estimated price tag is almost double the original cost of $1.6 billion. The figure includes almost $154 million that had been omitted from the bill when the cost was revised up last year.

In addition to a further cost blowout, the report found the Light Rail is slower than promised, and a key benefit of the project – government savings by cuts to bus services – will recoup “significantly” less than expected.

The cost of Sydney’s Light Rail service is now up past $3 billion. Picture: John Grainger

MORE NEWS

Wedding venue stages ‘summit’ amid protest anger

TAFE sector review delayed until ‘late 2020’

Police Minister target of abusive messages, vandalism over protests

Auditor-General Margaret Crawford found the government had failed to regularly update the public about cost blowouts.

"The information on project costs has not always been accurate or current," her report said.

Ms Crawford also said Transport Minister Andrew Constance made a $93 million dollar rounding error, when he announced the Light Rail would cost $2.9 billion in November last year.

“The (Transport for NSW) briefing stated the updated estimated total cost of the project was $2.993 billion (excluding financing costs),” Ms Crawford said.

Transport Minister Andrew Constance has been accused of intentionally covering up the project’s true cost. Picture: AAP Image/Joel Carrett

Opposition Leader Jodi McKay accused Mr Constance of intentionally covering up the total cost.

“He has wilfully covered up the cost of the project, and it's taken the Auditor-General to actually reveal what the final cost of this project is,” she said.

The Transport Minister’s office did not answer questions about why the incorrect figure was quoted in November 2019, but a Transport for NSW spokesman said the rounding error was not intentional.

However, the $2.993 billion cost estimated late last year wasn’t accurate either. The figure failed to include almost $154 million of associated costs, including $60 million for a small business assistance package, and almost $58 million “directly attributable to delays in the project,” the Auditor-General found.

Over $150 million of extra costs have been identified. Picture: Tim Hunter

The government will also save less than expected on reducing bus services across the network following the Light Rail’s completion. In addition, Light Rail journeys are taking longer than first proposed, the Auditor General found.

“Transport for NSW has always stipulated that the final cost would not be known until a final completion review by Infrastructure NSW is complete,” a spokesman said.

“This is a $3.1 billion dollar ghost train paid for by the taxpayers of NSW,” Shadow Transport Minister Chris Minns said.

Ahead of the report’s release on Thursday, Premier Gladys Berejiklian was asked whether she stood by the Light Rail project as being good value for money.

“100 per cent,” she said.

Originally published as Sydney light rail project cost blows out by another $154 million