Bundaberg Regional Aquatic Centre costs blow out by $30m

The Bundaberg Aquatic Centre, originally expected to cost about $45 million, is now expected to cost close to $75.8 million, forcing the council to borrow more money.

The cost of building Bundaberg’s new aquatic centre has blown out by 66 per cent, with the original estimated $45 million price tag will now be more than $83 million (including GST).

According to a Bundaberg Regional Council agenda, the new build will now cost $75.8 million (before GST), with the council borrowing another $30 million to cover those costs.

Speaking at Tuesday’s council meeting, Bundaberg Mayor Jack Dempsey said the $75.8m figure did not include GST.

“I’ll just clarify the sum is excluding GST,” Mr Dempsey said.

The council confirmed on Wednesday that the total price of the aquatic centre, including GST, would be $83,380,000.

“Council uses figures excluding GST because it is GST registered and therefore is reimbursed for any GST paid,” a council spokeswoman said.

“Therefore the real cost to council of this project will be $75.8 million.”

The project’s funding includes $13 million from the State Government’s Works for Queensland program.

Council CEO Steve Johnston said the final cost of the pool was not something council could pinpoint until all tenders were received.

“While council made some early projected cost estimates for the project, as with any major construction project, full costs are not known until detailed designs are complete and tenders are received, particularly in the current economic climate,” Mr Johnston said.

“Recently the Auditor-General’s Local Government Financial Audit Report highlighted Bundaberg Regional Councils' financial sustainability, confirming we are in a good position to deliver this generational project which will offer economic, social and health benefits for our community for many decades.”

The council is seeking a resolution to enter into a contract with East Brisbane’s TF Woollam and Son Pty Ltd to build the new pool for a fixed price, lump sum contract of $75.8M.

The centre will be built on land near the Bundaberg Multiplex Sport & Convention Centre.

The state-of-the-art aquatic centre caused debate within the Bundaberg community when the council announced it would demolish Anzac Park Pool before the new centre opened.

Bundaberg residents were informed at the time the project would be able to continue without the closure of the Anzac Park Pool, but is no longer the case.

The Anzac Park Pool closed on April 17, 2022, to make way for the new centre, scheduled to open in 2024.

In June, 2022, councillor Steve Cooper said in a media statement that borrowing costs for both the aquatic centre and Anzac Park redevelopment would be spread over 20 years.

“Our capital program for the next 12 months is targeted towards addressing infrastructure upgrades that take advantage of grant funding,” Mr Cooper said.

“Through borrowings we’ve ensured that today’s ratepayers are not shouldering the financial burden of generational projects like the Bundaberg Regional Aquatic Centre and Anzac Park redevelopment.

“We’ve been able to access loans and borrow from our own cash surplus to share this cost into the future.

“Those costs will be spread over the next 20 years and the benefits of these two major projects will be felt for the next 50-plus years.”

Originally published as Bundaberg Regional Aquatic Centre costs blow out by $30m