Canberra light rail could cost up to $1 billion: ACT Opposition
Hidden costs for the ACT Government's light rail link between Canberra's CBD and Gungahlin could cause a price blowout of up to $1 billion, the ACT Opposition says.
The Government's long-awaited business case for the 12-kilometre Capital Metro link was released on Friday, outlining a return of $1.20 for every $1 spent on the project and $1 billion in community benefits.
The first stage of the network from Gungahlin to the city will be delivered as a public-private partnership, paving the way for a city-wide network.
But Liberal transport spokesman Alistair Coe said the business case left out millions of dollars in hidden costs.
"There are a lot of costs that aren't part of that partnership," he said.
"Costs such as staff at the Capital Metro Agency, some of the work on Northbourne Avenue and other projects are not going to be formally part of the agreement, but are all essentially works.
"So the cost of the project could blowout to easily $900 million and who knows, possibly $1 billion."
Mr Coe also accused the Government of being disingenuous in its costings.
In 2012 the ACT Government estimated the 12km line between Civic and Gungahlin would cost $614 million.
Six weeks ago it revised the cost to $610 million, plus a contingency of $173 million.
But modelling in the business case showed the project was very likely to eat up most of that contingency.
Mr Coe said the document showed there was a one-in-four chance the project would actually exceed it.
"It's not really a contingency. It's in fact a high likelihood that the full cost of light rail is going to be very close to $800 million," he said.
Light rail figures unchanged in business case: Corbell
Speaking to ABC News Canberra's Virginia Haussegger, Capital Metro Minister Simon Corbell said the Government had been open.
"The figures are completely unchanged from the figures we were quoting a couple of months ago," he said.
"The figure is at a 75 per cent confidence level, that's the figure recommended to us by the Capital Metro Board.
"The board is chaired by Mr John Fitzgerald, he is the head of Infrastructure Australia at the moment, so I take his advice and I take his assessment."
Asked whether a $1.20 benefit return per $1 was adequate, Mr Corbell said it was not about turning a profit.
"We've said the project needs to deliver a positive economic return to the community," he said.
Mr Corbell said the benefit-to-cost ratio was very similar to similar to light rail projects undertaken elsewhere in Australia.
Greens 'vindicated by business case'
Greens MLA Shane Rattenbury said the business case for light rail vindicated his party's position in pushing for the project.
He said the final business case put to rest any economic concerns surrounding the light rail link.
"I'm really pleased that the economics match the vision shown in making the decision to go ahead with this. We can see very clearly, as we always knew, this will deliver benefits for Canberra," he said.
"The decision to go ahead with light rail that we took a couple of years ago has now been vindicated by the business case which shows clearly the economic benefits for our city."
Following the 2012 ACT election the ACT Greens and Labor struck a power-sharing deal, that was contingent on Labor's support for light rail in Canberra.
