Queensland: Infrastructure costs

[ozbob]

Queensland Parliament Hansard  Ministerial Statements

https://documents.parliament.qld.gov.au/events/han/2024/2024_02_13_DAILY.pdf

Transport Infrastructure, Costs

Hon. BJ MELLISH(Aspley—ALP) (Minister for Transport and Main Roads and Minister for Digital
Services) (9.58 am): The Premier has a big vision for Queensland and has led the government's
$89 billion Big Build. I am proud to support the Premier's vision to deliver the infrastructure that
Queensland needs. The Miles government, in partnership with the Australian government, has over
$32 billion invested in transport and road projects. It is an ambitious program that is delivering increased connectivity for Queenslanders right across the state. Like all infrastructure programs, it is facing cost pressure challenges with the increased cost of construction.


As the House will be aware, I have made a commitment to provide more details highlighting the
cost of construction for transport and road projects. On 22 December last year, the Deputy Premier and I released an itemised list detailing cost increases for 32 jointly funded major transport and road infrastructure projects that were impacted by the federal government's infrastructure review. Today I am tabling these details for the information of members. Releasing cost estimate updates on transport and road projects is part of the Miles government's plan for transparency with Queenslanders.

Tabled paper: Document, undated, titled 'Table 1: Jointly funded projects with cost pressures and impacted by the Infrastructure Review'.

I have committed that, as TMR becomes aware of cost increases that are confirmed through our
budgeting process, we will be making them public at least twice a year—at the budget and around the
midyear budget update. In addition, for some individual projects we will be making cost increases publicat major project milestones such as contract award or project completion. I can also advise
that the Mooloolah River Interchange project cannot proceed until the federal government changes their position on funding, noting that they have withdrawn their funding contribution for this important project. ...

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'Table 1: Jointly funded projects with cost pressures and impacted by the Infrastructure Review'

https://documents.parliament.qld.gov.au/tp/2024/5724T160-0FEF.pdf

[ozbob]

 

[Fares_Fair]

Oh my.. State ineptitude and delays are astronomical.
This project has been on the go very slow for almost 6 years..

Beerburrum to Nambour (but a deception in name as works now end at Beerwah) Rail Project blown out to $1.004 billion !!!

Was originally $550.8m (Stage 1)
(Stage 1 and 2 was originally $780m)

[#Metro]

The end of the megaproject era. Priced out of existence.

[verbatim9]

But these aren't mega projects. It's just a train line duplication and realignment.

[verbatim9]

It's just time for a change of Government to get things on track again. This is really ridiculous.

[verbatim9]

The end of the megaproject era. Priced out of existence.

Next announcement will be added cost to local train manufacturing. How much is it now and how much will it be? I reckon another couple of billion will be added to the current price tag for sure.

[#Metro]

The basic rule of thumb is you take whatever the official government figure is and double it.

[Jonno]

The price of doing the wrong thing is doubling Awesome!!

[Gazza]

I think the biggest escalation i can see is Daisy Hill to Logan Motorway.
Was $1b, now $4.5b.

[achiruel]

It's just time for a change of Government to get things on track again. This is really ridiculous.

Present evidence that a change of government would reduce costs.

[ozbob]

Couriermail --> Major project cost blowouts to cost Queenslanders billions $

Major Olympic, energy and infrastructure projects are facing blowouts that could cost Queensland billions, with construction inflation forecast to increase by 4 per cent per year from 2028, Oxford Economics Australia has warned.

Economists are urging policymakers to implement stronger productivity measurers and better project planning to avoid major blowouts towards the end of the decade, with projects worth $1bn or more predicted to blowout by an average of $200m each.

Queensland projects at risk of being affected by cost inflation include Copper string 2.0, all Olympic infrastructure, the Gabba redevelopment, Gold Coast light rail and the Burdekin pumped hydro project.

Oxford Economics Australia senior economist Adrian Hart warned Queensland would be hit hardest by the inflation forecast due to its mammoth infrastructure pipeline and Olympic and Paralympic works slated to start around 2028. ...

https://x.com/ozbob13/status/1802367814478835852

[#Metro]

Priced out of existence.

[NothingToSay]

Nothingburger of a story. Inflation is usually at or around 3% and it is very normal for a big infrastructure spend to introduce higher inflation as you compete for trades and materials

[SurfRail]

Construction inflation has been quite bad in the last decade.  Unfortunately stuff needs to get built one way or the other.  I don't see John Holland or the other Tier 1s going bankrupt.