State confirms Bunbury road blowout

10/05/2022 - 11:01

Bookmark

Save articles for future reference.

The price tag of the Bunbury Outer Ring Road will hit $1.25 billion, with the state government to pledge a further $80 million in the upcoming budget.

State confirms Bunbury road blowout
Main Roads plans to clear 60 hectares to build a 10.5-kilometre dual carriageway bisecting Gelorup. Image: Main Roads WA

The price tag of the Bunbury Outer Ring Road will hit $1.25 billion, with the state government to pledge a further $80 million in the upcoming budget.

Business News first reported in March that costs had dramatically increased, and last week revealed an appeal process had led to changes in environmental rules for the project.

The state is now to spend $250 million on the road extension, with the federal government paying the remaining $1 billion.

Acciona is head contractor for the project, a company which has also had troubles at the Avertas Energy waste to energy plant in Kwinana.

In 2018, a press release from federal Urban Infrastructure Minister Paul Fletcher said the road would cost $700 million, with the Commonwealth planning to chip in $560 million.

A more recent estimate in late 2020 when contractors were selected was a cost of $852 million.

The state government said the increase was driven by “rising supply and demand pressures”.

The costs of diesel and bitumen had lifted by 60 per cent and 20 per cent respectively over the past 12 months, the government said.

About $30 million will create further Aboriginal contracting opportunities.

The road is not the only state government project with cost pressures.

Among rail projects, the cost of Midland station was reported to have doubled to more than $300 million.

The government set aside $1.4 billion in the 2021 state budget for four projects where tenders had not been finalised, including the Victoria Park-Canning level crossing removal and the Byford extension.

Those two projects alone are now set to cost $2 billion.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options