Transport for NSW is under fire over delays and a cost blowout for a promised road upgrade serving one of the Hunter's most important growth areas.
Lake Macquarie mayor Kay Fraser, state member Greg Piper, federal Hunter MP Dan Repacholi and the developer behind the Cedar Mill tourism and entertainment precinct at Morisset have slammed the lack of progress on upgrading Mandalong Road, despite a $76 million commitment from the state and federal governments last year to fully fund the project.
The federal Department of Infrastructure website says the estimated cost of the road upgrade is now $122 million, $46 million more than the funds committed during the 2022 federal election campaign.
A Transport for NSW spokesperson said on Thursday that it was "currently reviewing the project scope and estimated costs, along with staging options, to recommend a way forward".
"Transport will work with Lake Macquarie City Council regarding costs towards the project upgrade as the investigations continue around estimated costs, scope and staging," the spokesperson said.
"Timing for construction is not confirmed and would be dependent on planning and funding approvals."
Cr Fraser accused Transport for NSW of dragging the chain on the project.
"It's been nearly a year, the money's there and nothing has happened. I'm very angry about that," she said.
"They're just stopping investment in our city. We've got $1.2 billion in investment in Morisset, and if Transport for NSW can't deliver the project, give it to someone that's capable."
Cedar Mill developer Paul Lambess said it would be a disaster if his $235 million concert venue and water park under construction on the former Morisset golf club site and his large-format retail centre on the other side of Mandalong Road opened late next year while work started on ripping up the state-owned road.
"At what point does the asset owner need to take responsibility for their own asset?" Mr Lambess said.
"The residents and commuters live in a state of construction for eight years when you could have done it all at once over three years.
"The formula for infrastructure seems to be break it then they'll fix it."
The road upgrade is designed to relieve a traffic choke point entering Morisset from the M1 motorway and serve Cedar Mill, Trinity Point and other large developments planned for the area.
The NSW Department of Planning and Environment's Hunter Regional Plan 2041 names Morisset and nearby Cooranbong and Wyee as "the largest future growth area in the Central Coast and Hunter".
"If the Department of Planning's saying that in the regional plan, this intersection and these works have to be prioritised," Mr Lambess said.
"This is a state road, the funding's there, the Department of Planning's identified this as a regionally significant growth area, so just get on and get it done.
"The [NSW] election issue becomes having efficient planning and transport authorities that can deliver."
Mr Piper said the project was "expensive and difficult, but the cost estimates are getting ridiculous, especially when TfNSW hasn't even finished the studies yet".
"The first estimate done a few years ago came in at about $40 million, then it was $76 million, and then we were hearing $96 million and now $122 million with no actual study done," he said.
"Something doesn't smell right. Seriously, how hard and how expensive is it to build a 1.4-kilometre stretch of road and two sets of lights? It's getting beyond a joke."
The federal government included its $56 million contribution to the road upgrade in the budget in October and the NSW government has committed $20 million.
Mr Repacholi said he had written to federal Infrastructure Minister Catherine King asking her to examine the "sudden and unexplained cost increases".
He said Transport for NSW officials had quoted a cost figure of $94 million during a meeting with NSW Minister for Regional Transport and Roads Sam Farraway in September.
"This is a very important piece of infrastructure that all levels of government have committed to, and works should be under way," Mr Repacholi said.
"But now we are seeing the goal posts being shifted by the NSW government and Transport for NSW.
"I am at a loss to understand how the project cost could leap from $76 million in April 2022 to the $94 million by the end of 2022."
The Hunter development industry and politicians have been simmering for years over perceived delays in gaining approvals from Transport for NSW.
Lake Macquarie's economic development body, Dantia, issued a report in 2020 which said Transport for NSW delays were holding up nearly $8 billion in development projects across the region.
Cr Fraser spoke to the Newcastle Herald on Thursday while touring major infrastructure projects in western Sydney.
"Why should we be treated like second-class citizens and not have that type of investment commence? The work should be started now. This should be shovel in the ground. There's no excuse.
"Both state and federal government are committed to the project. I don't know who's stopping it from going ahead, but I suspect it's Transport for NSW saying we're not interested in this project or the Hunter."
Cr Fraser said a cost estimate of $122 million was "ludicrous" and called on the transport minister in the next state government to "direct Transport for NSW to deliver this project".
She said the $76 million committed in April last year was based on Transport for NSW estimates which included "quite a lot of contingency".
Labor's candidate for Lake Macquarie in Saturday's NSW election, Stephen Ryan, said Mandalong Road was "one of the worst in Lake Macquarie, especially in the afternoon peak".
"The cost blowout on this project beggars belief," he said.
"It makes you wonder if Transport for NSW simply do not want to do it."
A Lake Macquarie council spokesperson said "independent detailed costings" for the Mandalong Road project had been "completed in conjunction with federal and state government agencies".
"These were based on a design that complied with Transport for NSW standards for this state-owned road," the spokesperson said.
"It's frustrating and disappointing that the Lake Macquarie community is still waiting for Transport for NSW to commence detailed work on this project, given the exponential growth and investment taking place in the Morisset area.
"The lack of progress is a handbrake on delivering key infrastructure and new housing in the area, which the western Lake Macquarie community deserves."
- Tune in to the Newcastle Herald's election-night blog on Saturday for seat-by-seat Hunter results, analysis and reaction from a team of reporters out in the field covering the count. Go to newcastleherald.com.au or the Herald app.
