Asset investment slows to $23bn

12/05/2016 - 15:45

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The state government expects lower contracting and construction rates will deliver savings of more than $1 billion on its asset investment program over the next four years, but has not committed to any major new infrastructure projects.

Asset investment slows to $23bn
The $1.4 billion Perth Stadium project

The state government expects lower contracting and construction rates will deliver savings of more than $1 billion on its asset investment program over the next four years but has not committed to any major new infrastructure projects.

Its asset investment program will be $5.9 billion in 2016-17 with transport projects accounting for nearly one third of the total.

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Spending will increase to $6.1 billion in 2017-18 before declinig gradually.

The total over the four-year forward estimates period is $23 billion.

Major projects include the $1.4 billion Perth Stadium - due for completion by 2018 - and the $2 billion Forrestfield-Airport rail link.

The government has also announced the reallocation of state funding for the construction of a $49 million Ellenbrook Bus Rapid Transit project, to be built in 2016-17 to 2017-18.

Premier Colin Barnett said the project offered a cost-effective way to provide Perth’s north-eastern suburbs with access to fast public transport.

It comes after the government backed away from more ambitious plans, including a heavy rail link.

Treasurer Mike Nahan said the government would invest $300 million towards new and existing education infrastructure in 2016-17.

Major projects include Stage 1 of North Butler Senior High School, expected to cost $69 million, and an expansion of Shenton College at a cost of $49 million.

Just $1 million has been allocated for further studies on the development of a new western suburbs high school, designed to reduce pressure on existing high schools in the area.

The government is currently evaluating short-listed potential development sites.

The budget includes $378 million over the next four years to deliver a state-of-the art museum to house Western Australia’s collection of artefacts and natural history.

The total cost of the new Northbridge museum will be $428 million.

Dr Nahan told a budget briefing that rapid growth in the state’s prison population meant a new prison would be needed soon, and said it would be a public-private partnership.

“I am sure going forward our new prison will be a private prison, built, owned and operated, for a couple of reasons," Dr Nahan told a budget briefing.

“They have better outcomes in terms of making sure people don’t come back in, but more importantly they do it at half the cost of a public prison.”

The $221 million Eastern Goldfields Regional Prison will become operational in 2016-17, adding 350 beds to the state muster.

 

 

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