The blowout on the building of the new Royal Adelaide Hospital (NRAH) continues to grow and is now approaching $500 million.
This further blowout was detailed in evidence provided to the Budget and Finance Committee Monday.
“Prior to the last state election in 2010 the Labor Government promised the NRAH would be built for $1,700 million,” said Shadow Health Minister Rob Lucas.
“In fact, the Labor Government asserted their costing had been verified by independent experts.
“When the NRAH contract was signed the Government admitted the blowout was $395 million for a total cost of $2,095 million.
“However, since then the Labor Government has been forced to concede there are a series of further unbudgeted costs related to the project as well as further costs which should be included in the total project costs.
“Some examples of these further costs are consultancy and project management costs, extra staff, air tube transportation link, remediation of contaminated land etc.”
The following table summarises current known total costs:
Construction contract $1,850 million
State costs $245 million
SAH project management $32 million
Extra staff costs $25 million
Total $2,152 million ($452 million blowout)
However, in addition to these costs the following are still to be finalised:
DTF project management costs: n/a
Air tube transportation link: $5-10 million (estimated)
Remediation costs (NRAH site): $20 million (estimated)
Remediation costs (RAH site): unknown – dependent on use of site
Contract variations: unknown
Refinancing cost risk: unknown
“In addition to these project costs there will also be the costs incurred by the Federal Government and the University of Adelaide related to the move of the Medical and Nursing schools to the NRAH site as well as still unresolved issues with the Dental School and Dental Hospital,” said Mr Lucas.
“It is now clear taxpayers face massively increased costs for the NRAH project with the blowout now approaching $500 million.
“This is yet another example of the financial mismanagement of the Labor Government where they didn’t give proper consideration to all related costs associated with their decision to move the RAH to a new site.
“Given this record no one will believe Mr Weatherill’s claim he will build the new Women’s and Children’s Hospital at the NRAH site for $600 million