Delays, ditched designs and hospital damage: Leaked report reveals Metro Tunnel woes

A leaked government report on the new $14 billion Metro Tunnel rail line under central Melbourne reveals delays, potential compensation claims, unresolved issues with cancer treatment equipment in an inner suburb, and plans to dump elements of the mega-project to cut costs.

The report – written last month for the state government’s infrastructure development committee, which includes several senior MPs – says that while the Cross Yarra Partnership is contracted to finish the project on April 29 next year, “late 2025 is more likely”.

The site of the Town Hall station and the neighbouring Westin Hotel this month.
The site of the Town Hall station and the neighbouring Westin Hotel this month.CREDIT: WAYNE TAYLOR

It warns that delivery of two new rail stations, State Library and Town Hall, are “behind schedule” and that the relationship with the companies delivering the project could become a problem.

“Productivity rates at [these] CBD stations have been lower than forecast due to a range of factors, including industrial relations, and delays to completion of building works is putting pressure on testing and commissioning activities,” the report says.

The report adds that while the government is “working collaboratively” with Cross Yarra Partnership and another consortium the government has contracted, “there is a material risk that the level of collaboration and coordination required to successfully complete the project deteriorates”.

News of the fresh delays come as the $21.6 billion Metro Rail line under central Sydney opened on Monday. NSW Premier Chris Minns hailed that project as “a new era of public transport”.

Melbourne’s project was originally budgeted at $10.9 billion and is now expected to cost about $14 billion.

So long as the new subway is finished by the end of next year, it will not be greatly delayed on its predicted completion date of 2025 – but the leaked report warns new costs and delays may arise.

Clay Lucas at The Age

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