“In the absence of immediate remediation measures, the completion of project is highly unlikely to be achieved to either time or budget.” It was not until April this year that the government conceded publicly that the project was likely to be opening later than its original date of March 2019. The light rail project has been marred by repeated delays, cost blowouts and legal disputes. The report's release came as Spanish contractor Acciona warned on Thursday of a risk the completion could be even later than the most recent opening date of May 2020, and estimated it stands to lose $1 billion on the project, placing the blame squarely with the state's transport agency. Acciona also told a parliamentary inquiry on Thursday that it would have not signed the construction contract for the 12-kilometre line if it had received guidelines from power company Ausgrid about underground cables beforehand which were described as a "crap the pants" document.

Loading Acciona Infrastructure Australia managing director Bede Noonan said there was a risk the project could be later than its latest formal date for completion of May 2020 – which is 14 months later than originally planned – due to work by Ausgrid that it had no control over. "There is a risk that it could be later than May 2020. There are a range of operations that need to occur to get completion of the project," he told the inquiry. "It is absolutely not possible for any contractor to achieve first quarter [of next year]." Overhead power lines on Anzac Parade at Kingsford and Kensington need to be taken down to allow Acciona to complete civil construction of the line. Mr Noonan cited as an example of the challenges a "significant failure" on Tuesday night when Ausgrid was due to carry out work on Anzac Parade but the power company's staff could not do so because they turned up without planning permits.

Loading "We are unable to force them to do anything. This failure of which was Tuesday of this week was planned three months ago," he said. "We have no idea when Ausgrid are going to be able to come back. It is very disappointing. I am sure it's not deliberate." Acciona is suing the state's transport agency for $1.1 billion for allegedly failing to reveal that it had not secured the agreement of Ausgrid on how crucial cables under the route should be handled. The prospect of Acciona seeking to recoup the additional expense could push the final cost to the state beyond $3 billion. It emerged from a report by the Auditor-General this week that Transport for NSW is in the process of preparing a revised final cost for the project. Mr Noonan told the inquiry it was a fact that Transport for NSW had in its possession an "extremely important document" known as the Ausgrid guidelines in early February 2015.

Loading But the agency did not provide them to the consortium – of which Acciona is a partner – until February 27, 2015, after the final contract had been signed, which Mr Noonan described as a "very significant mistake" by Transport for NSW. "Receiving these Ausgrid guidelines after contract signing was like Transport for NSW dropping a bomb on us," he said. "Our head of utilities who attended all of the pre-contract workshops ... wrote in an email in March 2015 that the guidelines are a 'crap the pants' document." Mr Noonan said Acciona would not have signed the contract to build the line if its consortium had received the Ausgrid guidelines beforehand. The effect of withholding the guidelines was to render everything agreed and discussed during the tender process "completely null and void", he said.

But Transport for NSW secretary Rodd Staples disputed the Acciona chief's comments to the inquiry, saying the contractor had signed an amended deed about a month after receiving the Ausgrid guidelines in February 2015, and had always been aware of the risks from the utilities. Loading "Ultimately it is going to have to be the court that will have to determine the differences," he said. "It is an extremely unusual circumstance that we have here." While the state's budget for the project remained $2.1 billion, Mr Staples said the agency had "indicated that it is likely to change". However, the final cost would not be known until both the court case and claims over modifications were concluded. Mr Staples also said the agency's latest estimate was for the line to be completed in March 2020, and there was a chance parts of it could be opened before then.