Auckland’s blowout on CRL


Bernard Orsman smoked out the truth from Auckland Transport about the CRL. It’s already over budget by a whopping $500,000,000!


The business case will be poked.

And the Government has jumped in to support it too soon…

The cost of Auckland’s most expensive project – the $2.5 billion City Rail Link (CRL) – has jumped to more than $3b.

Auckland Transport chief executive David Warburton says the project needs more money in the rail network that could easily take the “combined project cost” above $3b.

He understood that Prime Minister John Key was referring to additional investment in the rail network when he claimed last month the CRL will “almost certainly cost more than they thought”.

“One can easily discuss this as a combined project cost over the life of the project being above $3b.

“It simply depends on scope, pricing and how projects are related to CRL,” Warburton said.

Warburton did not say what the wider investment in the rail network involved.

The transport chief was prompted to reveal the wider costs after a source told the Weekend Herald the CRL cost was now more than $3b.

A second source said that a “bit more rigour and discipline” since the Government had agreed to bring forward a business plan had identified work that should have been costed in the first place.

A spokesman for Key said it was not appropriate to go into detail on possible CRL costs at this stage.

But I hear it’s more. And at a time when the industry is already maxed out with projects cancelling about town. It’s a sure bet that $500m could turn into $1 billion. Or more.

I’m down for a packet of Tim Tams that the real cost will be $1 billion over budget.


– Bernard Orsman, NZ Herald

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