A flagship rail project sending driverless trains under Sydney Harbour has blown out by $8 billion since it was originally costed, according to briefings handed to the incoming NSW government.
The Sydney Metro City and Southwest project is on track to cost at least $20.5b, up $8b on the original price tag, according to NSW Transport briefings seen by AAP.
The new total is close to $2b above the most recent public forecast when the Perrottet government’s June 2022 budget priced the project at $18.5b.
The former government had hoped to recoup $1.6b by selling businesses and properties compulsorily acquired along the line, the documents show.
The second stage of Australia’s first fully automated rapid transit system, Metro City and Southwest will connect Chatswood in Sydney’s north to Bankstown in the city’s southwest via a new underground line under the harbour and the CBD.
One section requires the heavy rail line from Bankstown to Sydenham to be converted to accommodate driverless trains.
Advice to government suggests that conversion is plagued by risk and may require a funding injection of up to $1b, over and above the $20.5b forecast.
The 30km line was originally forecast to cost between $11.5b and $12.5b, according to industry briefings released in 2016.
Premier Chris Minns warned earlier this week the Metro projects were facing significant financial obstacles, which were being uncovered as the government came to grips with its new portfolios.
“It appears the former government kept hidden the true cost of Sydney Metro City and Southwest and the potential impact on passengers,” a government spokeswoman told AAP.
“Every day, we are asking more about the Sydney Metro and discovering more key details the former government did not reveal to the public.
“We are being upfront and honest about the challenges we are inheriting. We’re not interested in assigning blame, we’re interested in finding solutions.”
It comes after reports this week another line in the Sydney Metro project, the underground Metro West from the city to Parramatta, had blown out its cost from initial estimates of $18b to more than $25b.
The premier said on Tuesday the challenges within the transport portfolio faced more significant financial hurdles than Labor thought during the election campaign.
He committed to finishing the two metro projects.
– AAP
