I've been mentioning the fact that the South rd tunnel project increased from $8.9B in Nov 2020 to $9.9B by July 2021
after the scope of the project was expanded to include an extra lane (from 2 to 3) in each tunnel and larger interchanges were designed involving extra property purchases
. The Feds have allocated $2.26B
And as I've highlighted on other threads, the South rd tunnels already increased in cost by $1B ia few months later and we expect that bill to finally be around the $11B-$12B range! What would $1B-$2B from that project provide for PT in Adelaide?
It has been obvious to all that project will end costing much more when completed. Thankfully, the govt deferred a start on the project for a year while undertaking a review.
Now it is being suggested that the South road tunnels project will end up costing $14B
! Thus, a project that the previous Lib govt first stated was costed at $8.9B in late 2020 is now suggested to cost upwards of a potential $14B! That's some bad costing process even accounting for recent, inflated material costs.https://www.abc.net.au/news/2022-06-24/sa-government-not-surprised-by-corridor-project-cost-blowout/101179768
The minister said reports that a cost-benefit analysis returning a ratio of less than one – meaning the costs outweigh the benefits of going ahead — was news to him. Department for Infrastructure and Transport chief executive Jon Whelan said he did not have a specific figure on the project cost or an updated cost benefit ratio at this stage.
The govt should revert to the original 2 lane plan or even seek a cheaper option such as the elevated option. It was previously costed that the elevated option would be around the $6B-$7B range. If we are in such a budget crisis then this appears to be only option. Again, questions have to be asked as to why this project has been expanded in scope with potentially such an ergregious blow out in cost which would be on a Westconnex scale
Some of the saved money could then be allocated for PT projects. Such as the future Aldinga ext or building new tram extensions
or electrifying OH or increasing service frequency or funding a daily Overland service or building a new branch line to Virginia. In fact, all of this could be done for the blow out amount suggested for this project!
It also doesn't bode well for the expected $2B-$3B that will be needed to upgrade & expand the SE Freeway in coming years. Once the whole North-South Corridor is completed some $25B in total would've been spent. Yet, somehow some assert that the state doesn't have money to improve and expand PT........