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Report puts CRR failures into perspective“The rise of mega-projects: counting the costs[i]” released by the Grattan Institute yesterday confirms the figures from the AIP’s “Cross River Rail Project: Review of Challenges and Opportunities[ii]”. It shows that the CRR project is already $1.48 billion over budget, without counting the up-to $900 million potential over-run for the issues with the Boggo Road Station[iii]. Combined, the cost over-runs amount to 44% of the original estimate of $5.4 billion. AIP Executive Director said the Grattan Institute study found that the average cost over-run for a mega transport project was 21%. “The cost over-run of the Cross River Rail project is therefore more than twice the average and counting.” Mr Young said the government had tried to disguise most of the cost over-run by privatising part of the project through a “public private partnership”. “This involved the state government transferring ownership rights over part of the system to the consortium building it, in return for them funding $1.48 billion worth of works. The consortium is then paid $4.2 billion at the rate of $400 million a year for 24 years as their return on the deal.” Mr Young said the Grattan report came to similar conclusions to the AIP report about the governance issues. The Grattan report makes a number of recommendations which include:
These recommendations are complementary to the AIP recommendations which included:
For further information contact Graham Young 0411 104 801 or graham.young@aip.asn.au [i] https://grattan.edu.au/wp-content/uploads/2020/11/The-Rise-of-Megaprojects-Grattan-Report.pdf [ii] Cross River Rail Project: Review of Challenges and Opportunities [iii] https://www.couriermail.com.au/news/queensland/cross-river-rails-huge-cost-blowout-as-experts-ignored/news-story/913437eaa5d137faef375a4f47c0a6c4 
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