By Matt O'Sullivan
The state government has rejected the only bid it has received from the private sector to build a major road interchange at Rozelle in Sydney's inner west, regarded as the most complex part of the $16.8 billion WestConnex toll road project.
In an about-turn, the state's roads agency, Roads and Maritime Services, will now take control of the process to select a consortium from Sydney Motorway Corporation, an entity the government set up to deliver Australia's largest toll road.
The government insists the setback in finding a builder of the underground spaghetti junction will not alter its plans for construction of the entire 33-kilometre toll road, to be completed by 2023, or the sale of a 51 per cent stake in the project next year.
Following questions from the Greens, senior Liberal MP Don Harwin blamed the lack of bidders for the interchange on "general market conditions" and the significant amount of infrastructure under way in NSW.
The final stage of WestConnex will include 7.5-kilometre twin tunnels.
"Roads and Maritime has decided not to progress the request for tender for the Rozelle interchange ... with the sole EOI expression of interest respondent, as this is unlikely to deliver value for money for the taxpayer," he told the NSW upper house.
Mr Harwin said the new procurement strategy would be a "more flexible solution that will include broader engagement with local and international contractors".
"The solution will deliver value for money for NSW taxpayers and ensure delivery of this critical final stage of WestConnex," he said.
But Labor's transport spokeswoman Jodi McKay said the decision to hand control to the state's road agency showed the government's lack of confidence in Sydney Motorway Corporation to deliver the project.
"They are making it up as they go. We have a $17 billion project that is changing on a whim," she said.
The underground interchange at Rozelle will be complex to build because it will be up to 65 metres deep, and comprise three levels of tunnels and scores of entrances and exits, including a link to the proposed but as yet unfunded Western Harbour Tunnel.
The Greens' transport spokeswoman Mehreen Faruqi said she was not surprised companies were hesitant to bid for the interchange, because it was "bizarre and virtually unbuildable" under its present design.
While the interchange is part of the $7.2 billion third stage of WestConnex, the government has separated construction of it from 7.5-kilometre tunnels between Haberfield and St Peters, which will link the M4 and M5 motorways.
The City of Sydney, a long-time critic of WestConnex, has accused the government of splitting construction of stage three to make the sale of the entire toll road more palatable for large investors.
Thousands of submissions in response to the environmental impact statement for the M4-M5 link are expected to be lodged by the closing date of next Monday, a month before the government will receive expressions of interest in the WestConnex sale.
It has given potential buyers of WestConnex until November 13 to lodge their interest, and wants the sale wrapped up by mid next year.