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New West Gate Tunnel deal to cost Victorian taxpayers another $1.9 billion

    Robert Storman
    By Robert Storman Replies (3)

     

    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.

    https://www.abc.net.au/news/2021-12-17/victorian-government-strikes-deal-on-melbourne-west-gate-tunnel/100707864

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