Major transport projects facing massive delays and cost blowouts
Major transport infrastructure projects could be delayed for years and blow out in cost following a major overhaul of the state government’s investment program.
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Major transport infrastructure projects could be subject to years of delays following a massive overhaul of the state government’s investment program.
It comes after an independent review found the state government was not prioritising their transport projects or properly consulting with industry, resulting in cost blowouts and delays.
The government will now reorder its QTRIP list of projects and improve its tendering process where a cost bracket will now published, before consulting with industry on a final price tag.
But Transport Minister Brent Mickelberg refused to say what projects could be pushed back down the pipeline.
“I’m not going to pretend that there will not be changes to projects, there will be projects that move across the QTRIP portfolio, but what I am committed to ensuring is that we deliver on each and every single one of our election commitments,” Mr Mickelberg said.
He vowed there would be no cuts, but would not reveal any further details before the release of QTRIP following next week’s budget.
“QTRIP next week will very clearly articulate the projects, one, that are contracted now, and two, that we expect to commence in the next 12 months and beyond. This is all about ensuring that we’re able to sequence the work in a better manner.”
Led by infrastructure expert Rodd Staples, the review also found the tendering process did not acknowledge key risks before contracting to market.
“(The government) needs to really do the homework in the front end, to do more work in developing the projects and really understanding what the risks are of these projects, before you step out and decide on what the final cost is and contract with the market,” Mr Staples said.
“I really recommend the government and the department be very, very disciplined in focusing on the priorities that are most important that they need to deliver over the next five to 10 years, and maybe that means pushing some lower priority projects back in the portfolio.”
Mr Mickelberg said these changes would save taxpayers money and encourage market competition.
Originally published as Major transport projects facing massive delays and cost blowouts