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CBD Movers™ > news > victorias taxpayers likely to incur an additional 1 9bn as new west gate tunnel deal finally goes through
New West Gate Tunnel Deal

Victoria’s Taxpayers Likely To Incur An Additional $1.9bn As New West Gate Tunnel Deal Finally Goes Through

After a long standoff between Victoria’s government, Transurban, and CPB John Holland, the New West Gate Tunnel deal is finally pulling through. The dispute arose regarding the disposal of the waste and contaminated soil from the area of construction.

The project was first planned to complete in late 2022 but has been pushed further to the year 2025 due to these lawsuits and disputes between the three parties. Transurban has to pay an additional $2.2bn and the builders CPB John Holland will have to give up on the profit it makes and also compensate for any losses along the way.

The New West Gate Tunnel is instrumental to Victoria’s economy and will provide a second crossing over the river. The question arises as to why the builders were not replaced in the first place. The government addressed the situation saying that completely scrapping the current contracts and hiring new builders would have been more expensive for taxpayers as well as the government. In figures, it would have been an additional $6bn to make this switch.

The tunnel connects the West Gate Freeway in Yarraville with CityLink in Docklands. Earlier this year, in June, preparations were made for the toxic waste to be dumped in a landfill in Bulla, in Melbourne’s northwest. However, project work could only begin after this landfill was prepared. A deal between Hi-Quality and Transurban was signed off for the disposal of the waste. However, at that time, a $3.3bn additional cost was projected.

Further in August 2021, Transurban Chief called for contributions and added that his outfit is ready to add more to the investment and the other two parties should also chip in. Government opposition leaders contested the heated debate and quoted that taxpayers shouldn’t bear the brunt of the entire debacle. The mistakes and wrong projections were totally on Transurban and CPB John Holland and they should be the ones paying for their shortcomings.

This is far from reality as the current situation does put taxpayers and toll-payers in a sticky situation where they are likely to face $1.9bn in total overdue.