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The Berejiklian government will hand over an extra $576 million to the Spanish builders of the Sydney CBD light-rail project, driving the final price of the project over the $3 billion mark, after agreement was finally reached with the company, Acciona, at the weekend.
Under the terms of the agreement — which has taken more than a year to settle after Acciona sued the state for $1.1bn claiming “misleading or deceptive conduct” over the cost of replacing powerlines in the CBD — the first portion of the light rail to Randwick in the city’s east must be complete by December. The second leg of the project, to the southeastern suburb of Kingsford, will be completed next March.
Both legs are being completed about a year later than scheduled and the project will double in cost from the $1.6bn price tag (later revised to $2.1bn) that Premier Gladys Berejiklian announced as Transport Minister in 2012.
This article first appeared on www.theaustralian.com.au
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