NSW Government in 'negotiations' to settle court dispute with Sydney light rail contractor Acciona, says Premier

Updated

NSW Premier Gladys Berejiklian has not ruled out more cost blowouts on Sydney's troubled light rail project, as a pricey lawsuit with key contractor Acciona heads for settlement.

Key points: The project is expected to be finished by May 2020, but the Premier is pushing for "the end of the year"

Acciona is seeking about $1.2 billion from the NSW Government in court

The project's cost has already blown out from $1.6 billion to $2.1 billion

Acciona, the firm building the project, is in a court battle with the NSW Government claiming it is owed $1.2 billion over "misrepresentations" about utilities affecting the under-construction rail line.

NSW Transport Minister Andrew Constance today revealed the Government was looking to settle that court battle.

"Whilst we're still in the midst of negotiations we don't have a final number and that's why were continuing discussions," he said.

"This project is no different to any other major civil project."

Mr Constance's rhetoric today was a far cry from his description of the legal action in April last year, when he called Acciona's claims "ridiculous" and said they needed to "get on with it".

"We will throw the book at them in terms of this contract," he said. "We are not going to muck around."

Acciona, which reports to a private-sector consortium known as ALTRAC, said in a statement it was in "ongoing commercial discussions" with the NSW Government.

A spokesman said the discussions were commercial in confidence and there was "no deal".

Ms Berejiklian said the negotiations — and the price tag on any proposed settlement — were a matter "for the experts" in court.

She also refused to rule out more cost blowouts on the project, which has already had its budget revised from $1.6 billion to $2.1 billion.

"I always say to people, wait until the project is over before we make any assessment on cost," she said.

"The Government has been in discussions for months and months with the contractor [Acciona].

"There's nothing new in what's being discussed."

The matter is due to return to the NSW Supreme Court tomorrow.

In a letter of demand to the Government in February, Acciona proposed mediation and threatened legal action for loss and damage plus interest over what it claimed were misrepresentations about the utilities in the lead-up to the signing of the contracts.

Acciona claimed "misleading or deceptive conduct".

The project will link Sydney's city to the southeast, past the SCG and Royal Randwick Racecourse.

It was originally intended to be finished by March's state election however it was revealed last year the project will not be complete until May 2020.

Ms Berejiklian said today she hoped the project would be carrying passengers by the end of the year.

Topics: state-elections, elections, rail-transport, industry, nsw

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