North-South Corridor Project Hits Billions Of Dollars Blowout

Infrastructure and Transport Minister Tom Koutsantonis said “it would not surprise” him if the North-South Corridor Project would blow its $9.9 billion budget.

The Advertiser reported it had been told the project has already reached $14 billion for the 10.5-kilometre corridor from River Torrens to Darlington.

The newspaper also said it was told a cost-benefit analysis had returned a ratio of less than one; an industry measurement meaning the costs outweigh the benefits of going ahead.

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Although the $4.5 billion blowout has not been confirmed, its understood that Cabinet ministers are expecting the project to have exceeded such a large amount of money.

Koutsantonis said the Department for Infrastructure and Transport had not confirmed with cost estimates since a project review was requested when Labor came into power this year.

He added the government is doing everything it could to ensure the corridor is delivered to benefit South Australian taxpayers.

“For many years, South Australians were led to believe this project was locked, loaded and on track for delivery,” he said.

“Upon coming into government, we learnt there was much more work to be done.”

Treasurer Stephen Mullighan said in his post-budget press conference the SA government was concerned about “cost escalation” for the North-South Corridor, but emphasised the government is committed to see the completion of the project.

Final cost figures and a revised reference design will be available in weeks.

The corridor is expected to begin construction in 2024, already pushed one year back the first panned, and completion expected around 2031.

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