We finally have an answer on the ballooning budget!
Mr Newton is now facing cross examination.
He has been asked to explain how the CRR project costs blew out from $5.4bn to its current $19bn price tag.
Here is the entire explanation:
“The $5.4 billion number back in 2017-18, when that budget was announced, the accounting standards didn’t require a declaration of the private financing component,” Mr Newton said.
“In the subsequent year, in 2019-20, that private financing of roughly one $1.5bn or one $1.499bn was incorporated, so hence the budget was, then, I suppose, recorded as being $6.88bn.”
“In the 2023-24 budget, it was adjusted to that same number, the comparative number $6.88bn was adjusted to $7.85bn and in that window was a range of things, stuff that’s been talked about here, but also Covid.
“Then the most recent adjustment is in the current budget, which is in the 2025-26 budget, which is $9.83bn OK, so that if you were to do an apples with apples comparison, the $6.88bn has been adjusted to $9.83bn.
“So then going to the question around the $19bn… it’s more than just that core scope of Cross River Rail.
“If you add $2.6bn – which is the service payments, which is the 25 year concession period where the state pays back that, that creates a number of $12.4bn.
“And there’s a further $6.6bn of other work that we’re delivering … there’s complimentary work, so stabling yards, station upgrades, bridges and some conventional signaling in the rail corridor. And on top of that is the ETCS signaling and also upgrades to the new generation rolling stock fleet, so that is ETCS capable.
“And then there’s some integration funding… then there’s other costs, such as alternative transport… and also some additional costs for Queensland Rail for their operation once that goes in.”
Keeping up?
CRR build cost = $12.43bn ($9.83bn for project + $2.6bn for service payments)
Other related works = $6.6bn
*“What has been talked about is whether you include those other numbers on top of the cost of the rail budget line item and say that that is the total cost of delivering Cross River Rail, or when you treat them as discrete online items,” Mr Newton said.
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Source: No Cookies | The Courier Mail