Auckland's City Rail Link is expected to cost more and take longer to build, says the Auditor-General. Photo / Supplied
Auckland's City Rail Link is expected to cost more and take longer to build, says the Auditor-General. Photo / Supplied
The bill for Auckland's City Rail Link (CRL) and upgrading the wider rail network to make the mega project work on day one is $5.5 billion and likely to rise, says the Auditor-General.
"The CRL is challenging. It is the country's largest and costliest transport infrastructure project ever," said JohnRyan in a report on the governance of the project.
The financial watchdog said the governance was effective and likely to deliver the CRL as planned, but it is also likely the project will exceed its budget and take longer than originally planned.
As with other major infrastructure projects, the report said, the CRL has been significantly impacted by Covid-19 and this could continue for some time. It was having difficulty recruiting specialist staff from overseas and was faced with rising construction costs and supply chain issues.
The City Rail Link is facing rising costs and delays. Photo / Michael Craig
Highlighted in the report is a looming cost blowout on work at the entrance to the Britomart train station, which is being kept under wraps due to contract negotiations.
CRL Ltd, the company set up by the Government and Auckland Council to deliver the project, has publicly signalled it will seek "significant" extra funding by the end of the year and the opening date will be pushed back from 2024 to 2025.
The Government and the council are sharing the $4.4 billion construction cost of the CRL.
The Auditor-General's report also spelt out the $1.1b costs on the wider rail network, including $404m from Auckland Transport for new trains, $220m to remove level crossings and $308m from the Government for KiwiRail to build a new 5.2km line between Wiri and Quay Park to ease congestion between freight and passenger lines.
"This brings the current total estimated cost of the work to enable the City Rail Link to start passenger services to about $5.53 billion," the report said.
The City Rail Link is making progress but is expected to cost more and not open until 2025. Photo / Brett Phibbs
Separate to this cost, the report said Auckland Transport (AT) and KiwiRail have signalled that between now and 2036, a further $7.5b will have to be spent on the rail network to realise the full benefits of the CRL.
KiwiRail and AT are developing a business case for this work. Last year, the Herald reported the cost was $6.7b for additional tracks and trains, lengthening platforms for nine-car trains, removing all level crossings on the southern and western lines, and a signalling upgrade.
Once these works are complete, the CRL will be able to run at a maximum capacity of 54,000 passengers an hour during peak times. When the CRL opens in 2025, patronage will rise from 15,000 passengers per hour to 27,000.
The Britomart East works relate to track and platform works where the twin tunnels meet the station, said Auckland Council's infrastructure and environmental services manager Barry Potter.
Barry Potter, Auckland Council Director Infrastructure and Environmental Services. Photo / Dean Purcell
He said the work is not needed for day one operations and was originally planned to go ahead after the CRL opening, but because detailed design work had been done the project was moved forward to avoid future disruption and cost increases.
Asked about the Auditor-General's comments on the increased scope and need for further funding, Potter said the costs remain confidential due to ongoing contract negotiations.
He said extra costs for the Britomart East works will be part of the further funding requests by CRL Ltd to the Government and council.
In the report, Ryan said it was important for CRL Ltd to continue being transparent with the public about the challenges, impacts from the Covid-19 pandemic, timeframes and costs of the project.
