According to the Sydney Morning Frontier, government felt powerless about Spanish contractor Acciona, who was responsible for building the track from CBD to the southeast because the A $2.1 billion contract for the construction and operation of the light rail was signed by ALTRAC, a consortium of four companies.
While 9 of the 31 regions have been completed, civilian construction in any one zone along the entire 12-kilometre route has not yet been completed, underscoring the serious failure of the project. The original schedule for all major civilian buildings, including poles and sidewalks, will be completed this month.
Martin Locke, an adjunct professor at the University of Sydney and former investment banker and infrastructure adviser, said one option for government was to terminate its contract with ALTRAC, but warned that the cost of doing so could exceed A $1 billion.
Due to the complexity of the contract, it takes 6 to 12 months to terminate the contract. Government would then be forced to find another construction company, and the new company would be in a position to pay huge premiums to complete the project and impose harsh conditions.
"government is really in a dilemma right now," he said. Government cannot claim the termination of Acciona`s contract because it was a contract with ALTRAC. "
The new state transportation department, citing "trade secrets", declined to say what the fee would be if the contract was cancelled.
The project, led by Berejiklian government, has been exposed in a legal document by Acciona, which will hold its first hearing in the New State Supreme Court on Friday.
Relations between the two sides have worsened after transport chief Andrew Constance accused him of failing to work and refuted Acciona`s claim that his comments were "not supported by objective facts."
(photo source: Web)
The Spanish construction giant sued the transportation department of the new state for "misleading and deceptive acts", claiming A $1.2 billion for loss and damage. Government`s lawyer said that Acciona was not aware of the number of pipes and cables that needed to be moved. Nor is it clear how complicated the work is. But Constance has written to Acciona, telling it that government has no contractual obligation to give it more money.
