A performance audit into the effectiveness of the economic analysis for the Light Rail Stage 2a Business Case has found the projected benefits of Stage2a to be at risk.
In his report Canberra Light Rail Stage 2a: Economic Analysis, Auditor-General Michael Harris said a significant amount of the benefits identified for Light Rail Stage 2a were based on the project being a catalyst for the acceleration of development of the Acton Waterfront.
“Neither the Stage 2a Business Case or Economic Appraisal Report provides information or evidence on how Light Rail Stage 2a is expected to accelerate development at the site,” Mr Harris said.
“Should the Acton Waterfront not be developed as fast as is hoped, then the timing and quantification of the expected benefits of Light Rail Stage 2a are at risk,” he said.
Mr Harris said the economic appraisal was developed in the context of a series of transformational projects and revitalisation activities.
“The implementation of Light Rail Stage 2a is dependent on the raising of London Circuit and will be influenced by the National Capital Authority’s plans for the Commonwealth Avenue Bridge,” the Auditor-General said.
“Any failure to implement these projects on a timely basis will have a negative impact on the expected benefits of Light Rail Stage 2a.”
He said the capital cost of the project was expected to be higher than was estimated in the Business Case and recommended that the projected costs associated with Stage 2a be updated in revised, publicly available documents.
Mr Harris made two recommendations including that as part of the revised economic analysis for Stage 2a, Major Projects Canberra explicitly identify the nature of the development costs and benefits associated with the project.
He also recommended the Chief Minister, Treasury and Economic Development Directorate cooperate with Major Projects Canberra and the Transport Canberra and City Services Directorate to develop a Benefits Realisation Plan for the project.
The Auditor-General’s 73-page report can be accessed at this PS News link.
The audit team was Laura Thomas, James Penny and Douglas Economics.
