Following the Auditor General’s announcement for a performance audit of the Cotter Dam project, Shadow Minister for Planning and Infrastructure Alistair Coe said the ACT Government should demonstrate what time penalties are included in the contract to construct the Cotter Dam.
“The cost of the Cotter Dam has blown out from the 2008 figure of $145 million to $409 million,” Mr Coe said today.
“A later $363 million figure included a $35.6 million ‘gain share’ (like profit) for the companies working on the project. That amount has now fallen by $29.2 million to $6.4 million.
“However, despite forgoing $29.2 million, it appears that contractors have picked up an addition $70 million for direct costs of construction.
“The contracts in place should mean that all involved have an incentive to deliver the Dam ahead of time and under budget. It looks as if the opposite is in place.
“Andrew Barr and Katy Gallagher need to explain why it seems ACTEW have given the contractors a financial incentive for the dam going over-time and over-budget.
“This is yet another component of the Cotter Dam saga which the Auditor-General could investigate,” Mr Coe concluded.