The NSW Government has conceded that the Sydney Metro project is set to blow out by up to $3 billion.
NSW Transport Minister, Andrew Constance, told the Sydney Morning Herald he expected the project’s cost to be over-budget by $2-3 billion.
“I am sorry it happened this way but it is very much market forces at play in terms of the build,” Mr Constance told the Herald.
“If you go back five years ago, I think it’s fair to say that not even Treasury could predict the escalation increases in the infrastructure market. And it’s not just in Sydney.
“There has been an overheated infrastructure market for contractors and, of course, that means that.
“It has been very much an uplift for suppliers as opposed to procurers. [But] I am not trying to pass off the buck here. Ultimately we take responsibility […] for where things are at.”
Sydney Metro conducted an internal budget review in 2018 that forecast a $4.3 billion cost increase.
However, Mr Constance blamed “the workings of bureaucracy” as the reason he was not made aware of the extent of the cost blowout.
Despite his admission, Mr Constance stated on Twitter, “We make no apologies for delivering $98 billion in infrastructure right across the state”.