$150m over-spend in Melbourne Metro project’s initial stages

Posted on 06 June 2019

Figures released today by Victoria’s Auditor General have revealed a $150 million blow-out on the $11 billion metro-tunnel project.

The original budget for the early construction phase was $476.6 million, but now the cost is forecast to be $625.5 million, according to Auditor-General Andrew Greaves. The government has advised that the project will still be delivered within the $11 billion budget over all, but Greaves has advised that he is unsure if there is enough wiggle-room left, considering these new findings.

“(Rail Projects Victoria) had substantially consumed the project’s overall cost contingency at the time of this audit,” he wrote.

“This raises an early concern about the sufficiency of contingency funds available for the next phase of the project, which includes five years of complex and risky tunnelling and construction.”

The increase is due to the added scope of the project, pressure to open the new railway a year early and issues at the State Library Station site.


Pictured: Plans for State Library Station

“[The] overall project is within project budget,” Transport Infrastructure Minister Jacinta Allan said.

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