Light rail comes in significantly under budget
30 May 2019
The final result on Light Rail
Stage One has verified the
ACT Government’s commitment to delivering an
affordable and sustainable
light
rail network for our city. Light rail is already proving incredibly
popular, moving thousands of Canberrans every day and we’ve delivered it
substantially under budget.
The original
business case estimated a
design and construction cost of
$783 million and a start to operations in 2019.
Upon contract signing the Government had secured a value for money
contract with a design and construction cost of $707 million and a 2018
start date.
The final cost has come in at approximately $675 million – a saving of
$108 million from the business case and $32 million from the contract.
Two items contributed to this great result: we had the foresight to
establish a dedicated project team with sound governance, talented
leadership, motivated staff and expert advisors from across the country.
We also worked with a great partner in
Canberra Metro who truly went
above and beyond in delivering light rail for our community, and,
through CMET, continue to provide a high level of service as the light
rail operator.
This lower than anticipated cost by itself means the benefit cost ratio
will increase to at least 1.3, rather than the original, conservative
estimate of 1.2. That means for every dollar invested, Canberrans get a
$1.30 back in benefits, including better transport, lower congestion,
more jobs and the increasing value of homes and businesses along the
route.
Minister for Transport Meegan Fitzharris said light rail is also beating
the business case predictions on patronage, with passenger numbers
already exceeding 2021 levels as Canberrans vote with their feet and get
on board light rail.
“Light rail is proving to be hugely popular already, with more people
using it every day, and as a result we’ve added more frequent services
during peak times to manage this demand.
“Along the light rail corridor the benefits are plain to see: with light
rail getting people to work, opening up new customers to local
businesses and seeing hundreds of Canberrans employed on building and
construction projects along the alignment that are already using their
proximity to light rail to attract buyers.
“The first stage of light rail saw around 5,000 people work on the
project, and we hope to build on that industry knowledge as we continue
planning for Stage Two to Woden. Indeed we are already funding early
works to prepare the Woden interchange for the next stage of light rail.
“The investment in light rail has also freed up dozens of bus services
that are now being redeployed across the city, meaning more Canberrans
are benefiting from more buses, more often – with the new network
already breaking patronage records on every measure,” said Minister
Fitzharris.
--ENDS--
Source: ACT Government - www.cmd.act.gov.au
Contact:
Kaarin Dynon (02) 6205 2775 0422 772 215
kaarin.dynon@act.gov.au
Claire Johnston (02) 6205 0022 0452 597 459 clairev.johnston@act.gov.au
External Links: N/A
Recent news by: ACT Government