Cost blowouts, delays, infest Dan’s West Gate Tunnel

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The Victorian government has advised that the $6.7 billion West Gate Tunnel project will not be completed in 2022 as originally intended. This has now been pushed back to 2023. Work on the tunnel project has been disrupted by a dispute over the disposal of contaminated soil:

The project was already running behind schedule amid a conflict between Transurban, its builders, CPB and John Holland, and the state government over the disposal of contaminated soil.

Transport Infrastructure Minister Jacinta Allan said the government had a contract with Transurban to deliver the project, “and we absolutely intend to hold Transurban to that contract”.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.