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The cost of the Western Sydney Orbital has risen by 20 per cent to
$1.5billion before construction work has even begun, the NSW Government revealed
yesterday while announcing the preferred bidder.
Construction of the 40-kilometre tollway, which was announced in June 2000,
could start early next year, with WestLink Motorway Ltd announced as preferred
tenderer ahead of the Thiess and Baulderstone Hornibrook-backed Orbital Parkway
Alliance.
WestLink would meet most of the construction cost if the final contract is
awarded. It is likely to be granted a 34-year concession to operate the road as
a tollway. Taxpayers will fund $356million of the road through Federal
Government support.
A spokesman for the Transport Minister, Carl Scully, said the increase in
cons-truction cost of $250 million from previous estimates represented the
``refined cost when [the project was] put to market".
WestLink is financially backed by Transurban Group (40 per cent), Macquarie
Infrastructure Group (40 per cent), Leighton Motorway Investments (10 per cent)
and Abigroup Ltd (10 per cent), a government spokesman said.
Transurban operates the CityLink tollway in Melbourne, which uses similar
electronic tolling technology to be employed on the orbital. The technology
allows drivers to pay tolls without stopping.
The toll will be charged in increments, depending on distance travelled, to
the maximum of about $5.
Nearly 100 houses will be demolished to make way for the orbital.
It will link the M2, M4 and M5 toll roads and provide the western arc of a
ring road around Sydney.
When built in 2007, it will form part of the national highway network, in
place of the Cumberland Highway, which is likely to revert to state care.
Mr Scully said a toll would be charged so the road could be built 20 years
earlier than if funded solely by the public sector.
The house of the Davis family is one of almost 100 that will make way for the
orbital.
The Roads and Traffic Authority has been buying land for the orbital for many
years. Land in Blacktown has been set aside since 1968.
After 23 years in their single-storey brick-and-tile house near Blacktown,
the Davises received a letter just before Easter that stated they would have to
move out to make way for an orbital on-ramp.
``[The money] still doesn't make up for all the heartache, anguish,
depression and fears," said Alison Davis, who renovated the house only three
years ago with an inheritance from her mother.
Mrs Davis and her husband Gary, a driver for a spare-parts company, settled
for $310,000 after negotiating with the RTA, which had initially offered
$280,000. They will also receive $18,000 to cover moving expenses.
They will move out at the end of November.
``My advice to others is not to settle for the first price you are offered,"
she said. ``The bottom line is that it's a raw deal we are the unfortunates."
An RTA spokeswoman said the agency knew the land acquisition process could be
difficult and unfamiliar territory for some property owners. ``For this reason,
wherever possible, extended periods are allowed for negotiations so that owners
do not feel they are being pressured into acceptance of an offer," she said.
Mr Scully said it was likely the final contract would be signed before
Christmas, allowing work to begin in the new year.
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