Roe 8 workforce reallocated to new projects, cost to scrap project $46.9m

Roe 8 workforce reallocated to new projects, cost to scrap project $46.9m

THE 231 people who were employed on the Roe 8 project will be reassigned to other road projects, as the total cost for the ill-fated scheme was put at $46.9 million.

Funding for the projects is the result of a new $2.3 billion Commonwealth-State agreement that includes the full reallocation of funding from the cancelled Perth Freight Link project.

The new agreement safeguards Roe 8 jobs and will relieve congestion in the northern, eastern and southern suburbs of Perth.

The alternative projects negotiated from the Roe 8 contract will also create hundreds of other indirect job opportunities for local contractors and suppliers.

The Roe 8 renegotiation includes the following road projects:

• Wanneroo Road (Joondalup Drive to Flynn Drive) – Constructing Dual Carriageway (cost: $31 million)

• Fiona Stanley Hospital and Murdoch Activity Centre access from Kwinana Freeway and Roe Highway (cost: $100 million)

• Armadale Road dual carriageway upgrade between Anstey Road and Tapper Road (cost: $145 million)

Construction on the first of the three projects – the Murdoch Drive connection – is expected to begin almost immediately.

Meanwhile, the Wanneroo Road and Armadale Road dual carriageway upgrades will start next financial year/

The Roe 8 Alliance contractors will be paid about $40 million for work completed so far while a further sum – less than $10 million – will be paid in lieu of their lost opportunity to fully recover overheads.

Total State Government expenditure on the Roe 8 project will be $85 million, however, after allowing for retained assets such as land, the written off costs total $46.9 million.

The alliance team will also collaboratively manage the rehabilitation of the cleared Roe 8 site in Coolbellup.

Transport Minister Rita Saffioti blasted the former Liberal government for pressing on so far with the Roe 8 project.

“Had the previous government taken the conservative option of only clearing to Bibra Drive in the lead up to the State election then total expenditure on Roe 8 would have been $61 million and the written off costs would only have been $22.9 million,” she said.

“The alternative would have been contract termination, loss of jobs and a potential long and protracted legal dispute.

“We have worked closely with Main Roads, the Roe 8 Alliance and the Commonwealth Government to bring forward important projects that will relieve congestion, reduce journey times and improve safety in key locations on our road network.

“The WA public gave the McGowan Government a mandate to scrap the Roe 8 project and we have acted quickly to reassign the workforce to new congestion-busting projects.”

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