Parramatta light rail 'on track'

Dominica Sanda

The NSW government is confident Parramatta's light rail line will be finished on time and on budget, despite it being involved in two legal stoushes over the delayed Sydney CBD light rail project.

The first stage of the project, which will connect Westmead to Carlingford via Parramatta's CBD and Camellia with a two-way track spanning 12km, has been given planning approval with construction set to start by year's end.

NSW Transport Minister Andrew Constance said businesses affected by the project, which is due to be completed in 2023, would not be disrupted for the full five-year construction phase.

He said disruptions would last for "months not years".

The government has shortlisted two contractors and expects them to deliver the project "on time and budget", Mr Constance told reporters in Sydney on Wednesday.

He confirmed that Spanish subcontractor Acciona, which is overseeing construction of the CBD light rail, would not be involved in the $1 billion Parramatta project.

"George Street was delayed because of the inaction of Acciona," he said.

"We will not have this problem here."

Acciona is demanding an extra $1.2 billion from the government claiming it was misled over the complexity of the CBD project, which was expected to cost $1.6 billion before a $500 million blowout.

Queensland-based VAC Group has also launched legal proceedings and is seeking more than $4 million - plus damages - from the government, which it has accused of misleading and deceptive conduct.

NSW Labor leader Luke Foley slammed Premier Gladys Berejiklian for "boasting" about the Parramatta project given the scandal surrounding Sydney light rail.

"She can't tell us when the Sydney light rail project of hers will ever be finished, it is running about two years behind schedule, and yet she has got the gall to get up and boast that she is going to deliver one in Parramatta," Mr Foley told reporters.

Ms Berejiklian promised to closely monitor the Parramatta project and would make sure businesses did not face the same disruption that hit those in the CBD, some of which have reportedly had to close down.

She would not say, however, whether compensation will be offered to affected businesses in Parramatta.

"We know some (Sydney businesses) are struggling and we will make sure that in Parramatta we will do everything we can to support all parts of the community during the construction process," she said.

A final business case for the second stage of the project, which connects Parramatta CBD to Ermington, Melrose Park, Wentworth Point and Sydney Olympic Park, is due to be completed by the end of the year.