Major NSW projects such as the Beach Link and Parramatta Light Rail may be mothballed following a major report as they will become increasingly complex and expensive.
key points:
- The report states that the cash flow of the government has been affected by COVID-19. is enhanced by
- Infrastructure NSW made a total of 113 recommendations
- Labor’s shadow treasurer Daniel Mukhi said the government appeared to be backtracking on its promises
The NSW government’s independent infrastructure body stated that “megaprojects” such as the Beach Link, Parramatta Light Rail, the M6 motorway, a Blue Mountain tunnel linking Katumba and Lithgow, major dams and future phases of the Sydney Metro would be taken up with smaller projects. should be postponed in favor. Provide “high pay”.
In its five-year strategy released today, Infrastructure NSW argued that labor shortages and the ongoing impact of the COVID-19 pandemic will make it difficult for the NSW government to deliver complex, multi-billion dollar projects.
“The construction industry’s capacity, supply chain and skills have all been enhanced by COVID-19 and other world events,” the report said.
“Delivering additional megaprojects in a cost-effective manner will be particularly challenging in the coming years.”
However, Infrastructure NSW recommended a proposal to raise the wall of the Warragamba Dam in line with plans to provide flood mitigation for the lower suburbs to the north-west of Sydney.
Infrastructure Minister Rob Stokes said the NSW government was committed to all of its projects, but indicated that some may be delayed or postponed.
“The NSW Government is committed to all projects,” he said.
“We should now consider advice from Infrastructure NSW on how we index our record infrastructure pipeline in light of the extraordinary global headwinds.”
Mr Stokes said the government should “consider independent advice from Infrastructure NSW.
“The report provides us with clear recommendations to diversify our infrastructure pipeline, consider more smaller projects while continuing to build city- and state-sized projects.”
Regional Roads and Transportation Minister Sam Faraway insisted that the Great Western Highway tunnel through the Blue Mountains would proceed in time, despite reports its urgency should be reconsidered.
Deputy Prime Minister and Regional Minister Paul Tolle echoed the sentiment.
“We know how transformative major projects such as dams and roads can be for regional communities, and the NSW Government is committed to fulfilling these projects,” said Mr Tolle.
But Labor’s shadow treasurer Daniel Mukhi said it appeared the government was preparing to scrap its key promises.
“These are projects that have already passed the government’s own appraisal processes for both need and affordability,” he said.
“The fact that the government is now reneging on its promises raises serious questions about how this government selects the projects and how the government intends to pay for them.”
“These communities deserve a clear answer from the government as to why these projects are being shelved.”
Infrastructure NSW made a total of 113 recommendations, including enhancing the state’s long-term water security by introducing recycled drinking water.
The report also made the case for the government to continue its program of “asset recycling”, in which state-owned properties are privatized to fund new projects.
And it said investment from the private sector will be critical to the state’s future infrastructure and services delivery.
“The government should continue with successful policies such as asset recycling, user fees and value capture to maintain its infrastructure investment pipeline,” the report said.
“It should also seek greater private sector co-investment and more long-term programmatic funding support from the Commonwealth.”
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