The cost of the Victorian Government’s signature rail project has blown out by $2.74 billion, with half the cost to be borne by taxpayers, after a year of protracted negotiations between the Government and judi online builders.
The consortium building the Metro Tunnel Project, Cross Yarra Partnership (CYP), had been seeking additional funding from the State Government since late 2019.
The negotiations saw work temporarily grind to a halt last December.
When completed, the Metro Tunnel will connect South Kensington to South Yarra through five underground stations.
It was initially costed at $11 billion and had blown out by $100 million by June last year.
Transport Infrastructure Minister Jacinta Allan said an “in-principle” agreement had been reached with CYP overnight, with both parties agreeing to spend an extra $1.37 billion on the project.
Ms Allan said the agreement would keep the build on track to be completed by the target date of 2025, with the opportunity for works to be finished by as early as 2024.