In a new twist in Melbourne's West Gate Tunnel project drama, the Victorian government reaches an agreement with the contractors to end the construction stand-off. It will cost Victorian taxpayers an extra $1.9 billion.
Around two years ago the contractors ( CPB Contractors and John Holland, respectively owned by Spanish and Chinese companies) had walked away from the contract claiming a “force majeure termination event”. They had claimed that the ground contamination was beyond the reasonable expectations and their means to tackle it (then estimated around $500 million). This was despite the fact that in the 1465-page West Gate Tunnel project agreement between Transurban and Victorian Treasurer Tim Pallas, there are 125 references to “contamination” (as pointed out by Clay Lucas of Brisbane TImes).
Now the taxpayers end of paying the extra cost... Never mind the two years delay. So far.
to "state"?
"West Gate Tunnel project to cost state extra $1.9 billion"
The Andrews government will spend an additional $1.9 billion on its delayed West Gate Tunnel project, adding to the state’s $19.5 billion budget deficit and soaring debt levels.
[The Spanish and Chinese] builders of Melbourne's West Gate Tunnel have been accused of "over-egging" the costs and danger of toxic soil to compensate for underbidding on the troubled project.
https://7news.com.au/politics/melbourne-tunnel-to-cost-vic-extra-19b-c-4983851
The Victorian government has blamed the builders of a Melbourne road tunnel for a $4.1 billion cost blowout, of which taxpayers will foot nearly half the bill.
cover tunnel photo by: Matt Brown from London, England / CC BY
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https://www.abc.net.au/news/2021-12-17/victorian-government-strikes-deal-on-melbourne-west-gate-tunnel/100707864
New West Gate Tunnel deal to cost Victorian taxpayers another $1.9 billion - ABC News
www.abc.net.auVictorian taxpayers will pay an extra $1.9 billion after the state government reaches a deal to end a stand off over removal of contaminated soil from the West Gate Tunnel project.