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Article: Tunnel drama won't hit PPPs, says Iemma

Started by ozbob, March 19, 2008, 20:38:35 PM

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ozbob

From National Nine News click here!

Tunnel drama won't hit PPPs, says Iemma

QuoteTunnel drama won't hit PPPs, says Iemma
Wednesday Mar 19 17:17 AEDT

NSW Premier Morris Iemma denies the government's poor record in public-private partnerships (PPPs) will lumber it with the entire $12.5 billion bill for Sydney's metro rail system.

Mr Iemma said his government was in a financial position to fully fund the project but wanted to test the market in the private sector.

It was revealed on Wednesday that two investors in the government's latest PPP, the Lane Cove Tunnel, were set to write off the bulk of their investments in the controversial project.

Cheung Kong Infrastructure (CKI) has announced it will write down its remaining stake in the tunnel from $113 million to zero.

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That announcement prompted Leighton Holdings to reveal it had made an allowance to write down its $117.5 million share by 70 per cent.

This follows the failure of another PPP, the Cross City Tunnel, which opened in 2005 and was in receivership only a year later.

However, Mr Iemma was insistent private firms would still be interested in the metro, and other projects such as the M4 East.

"There has been no shortage of interest, I'd say excitement, in the private sector, wanting to at least test their propositions in being involved in this sort of infrastructure," Mr Iemma told reporters.

He defended the Lane Cove Tunnel, denying suggestions it was already a white elephant even thought it has failed to even approach its targets of 100,000 cars a day.

"The last figure I have is that there was around 60,000 vehicles (a day)," Mr Iemma told reporters.

"It's a new piece of infrastructure, as with any new piece of infrastructure it takes time for the traffic volume to build up."

Mr Iemma said there were no contractual obligations with the tunnel owners in relation to opening a metro rail link from the city's north-west, despite the impact it could have on the number of cars using the motorway.

The premier on Wednesday also toured unused tunnels and platforms at St James station, which were dug when the original CityRail network was built during the 1920s.

The tunnels were part of the network designer John Bradfield's original plans and were to be used by trains travelling west to Balmain and to the south-east.

They had to be scrapped because of the depression.

"What I'm about, is to finish the first project of that dream ... to link the past to the city's journey, and to restart the journey of Bradfield's metro," Mr Iemma said.

He indicated a metro travelling to Sutherland, in the city's south, was also among the possibilities for new networks to Sydney's west, south-east and north.

Opposition Leader Barry O'Farrell said Mr Iemma's immediate vision for public transport would leave 900,000 commuters with second-class travel.

He said while those in the north-west would enjoy first class metro travel, it was cold comfort for residents elsewhere in Sydney, who will be stuck with existing overcrowded, slow CityRail services.

"Morris Iemma's future for rail in this city suffers from double vision - one world-class rail line compared to 15 rail lines that will continue to be second class," Mr O'Farrell told reporters.

He said the decision to introduce metro was the government "waving the white flag" and admitting the current CityRail service cannot be brought up to world standard.

?AAP 2008
Half baked projects, have long term consequences ...
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ozbob

Half baked projects, have long term consequences ...
Ozbob's Gallery Forum   Facebook  X  Threads  Mastodon  BlueSky

ozbob

From National Nine News click here!

NSW govt accused of double tunnel vision

QuoteNSW govt accused of double tunnel vision
Friday Mar 21 14:57 AEDT

Disused train tunnels beneath central Sydney are now at the centre of a political row, with the NSW government accused of planning farcical "underwater" trains.

The opposition pointed to state government plans, outlined last year, to use a flooded tunnel now known as St James Lake as a major source of recycled stormwater.

NSW opposition transport spokeswoman Gladys Berejiklian said the same tunnel had now also been earmarked for use as part of the government's $12.5 billion North West Metro rail project.

"It takes a certain level of incompetence to double-book an underground rail tunnel but that is exactly what (Premier) Morris Iemma has done," Ms Berejiklian told reporters in Sydney.

"Twelve months ago he announced the same tunnel would be used for a water reservoir.

"Next he will expect us to believe his metro trains will run underwater."

Ms Berejiklian said the bungle had revealed ad hoc government planning surrounding the major rail project, which was first promised to residents in Sydney's north-west in 1998.

"It demonstrates that they think the public is stupid," she said.

"Twelve months ago they announced a specific purpose for that underground rail tunnel, this week they announced a different purpose."

In February last year, Mr Iemma said St James Lake - which is about one kilometre long, 10 metres wide and five metres deep - could be used to supply the city with more than 17 million litres of recycled stormwater a year.

It was announced as one of a series of drought related water saving projects that could be rolled out across Sydney, at a cost of $40 million.

But the government says the opposition is mistaken.

It says St James Lake is mostly beneath the city's Botanical Gardens while a metro tunnel is needed on the other side of St James station.

A different disused tunnel was under consideration for the metro, a spokeswoman for Transport Minister John Watkins said, and it was more than a kilometre from St James Lake and separated by a very thick, natural sandstone wall.

"An abandoned network of tunnels exists under the city, covering a very large area," the spokeswoman said.

"We are conducting studies to explore various options for their use, including a recycled water scheme to service businesses in the CBD.

"These projects are not necessarily incompatible."

?AAP 2008
Half baked projects, have long term consequences ...
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