$576 million pay-out over Sydney light-rail

Posted on 03 June 2019

The NSW State Government has settled a year-long legal dispute with construction company Acciona, agreeing to a $576 million compensation payout.

Acciona is working on a 24-kilometre light-rail project to run from the Sydney CBD to the eastern suburbs. They sued the state government in early 2018, claiming that misrepresentations were made about the utilities in the lead-up to contracts being signed for the project. Acciona workers were put on a go-slow during initial proceedings, delaying the project further which was already months behind schedule.

The cost of the project has far exceeded the initial expectations of the government when the plans were announced in 2012. The bill has racked up to over $3 billion, which is almost double the amount predicted by the transport minister at the time.

Current Transport Minister, Andrew Constance, said it had been a “complex negotiation” but the agreement reset the relationship between the parties.

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