Minister welcomes Auditor-General's support for rail project contract

31/08/05

Planning and Infrastructure Minister Alannah MacTiernan today welcomed the Auditor-General's report into the New MetroRail City Section Project (Package F), which found that the contract was being managed well.

"The Auditor-General's key finding is a vote of confidence in the way that the State Government is managing one of the biggest infrastructure projects Western Australia has ever seen," Ms MacTiernan said.

"I also welcome the Auditor-General's finding that the responsibility, along with most of the cost risk, for the design and construction contract rests with the contractor, providing protection for WA taxpayers," she said.

The Auditor-General found the Public Transport Authority was capably managing the contract in terms of appointment of suitably qualified and experienced personnel; and appropriate systems, monitoring, relationships, and importantly, claims management.

The Package F contract is part of the $1.56billion New MetroRail Project, linking Clarkson in the north to Mandurah in the south by early 2007 and will see construction of a 770m twin-bored tunnel linking a new train station at The Esplanade and a new underground station at William Street.

Ms MacTiernan said timetable and cost issues identified by the Auditor-General were already being closely monitored by the Public Transport Authority contract team.

"As part of this program, in April this year I announced a revised timetable and budget which saw the city section's completion date extended to December 2006 and the project's contingency sum lifted by $45million," Ms MacTiernan said.

"We are confident that existing timetables and budgets are on target and a further review will take place in the lead-up to next year's Budget."

The Minister said she was pleased with the progress of the project to date.

"Leighton-Kumagai is still working towards a completion date of December 2006.

"Anyone can see the massive amount of construction work going on along The Esplanade and at the top of William Street," Ms MacTiernan said.

"The project's momentum is unstoppable and we expect to start tunneling within a month.

"By early 2007, we will be running trains from Clarkson in the north to Mandurah in the south.

"Against a backdrop of rising petrol prices, this project is crucial in our quest to build a world class public transport system that will ensure Perth remains one of the world's most livable cities."