Inadequate noise monitoring, the mental health of business owners, and the nature of PPP contracts are just some of the issues emphasised by a Parliamentary report into the procurement and delivery of light rail through the Sydney CBD.
Parliamentary committee chairman Fred Nile’s final report into the CBD and South East Light Rail project, released last week, makes 20 recommendations, many of them to ensure future projects do not repeat the mistakes identified over several hearings in 2018.
“With infrastructure projects of this magnitude, a degree of disruption is to be expected,” Nile says. “However, as this inquiry has shown, the impacts of construction have been profoundly experienced by residents and businesses located along the light rail route. Many have experienced excessive noise, dust, vibration and damage to their homes. Some of these issues have been heightened due to construction delays.”
The report indicates residents have frequently been exposed to unacceptable noise levels outside of regular work hours. Nile says this “has been impinging particularly on residents’ lives,” and says “noise has not been adequately monitored”. “Although alternative accommodation has been offered as a mitigation measure to some residents, the committee understands that this has often been an impracticable option,” he adds.
One recommendation is for Transport for NSW to consider whether the Independent Environmental Representative’s role needs to be expanded to include noise monitoring, or whether a separate authority should be appointed to manage this.
Another is for Transport to review its communication strategy, taking into account concerns raised, and report to the minister for transport on any improvements that can be implemented for future projects. The report questions the effectiveness of the State’s communication not only with residents, but also small business owners.
Business owners along the route have complained the disruption caused by light rail construction has savaged their goodwill and foot traffic – and thus their bottom line. While recommending the State extends and intensifies its remediation efforts, Nile’s report goes a step further, suggesting the mental health of small business owners has not been properly cared for throughout.
“It was clear to the committee just how much businesses have struggled since the commencement of construction of the light rail, with some having closed down,” Nile reports. “Not only have they endured significant financial losses, their physical and mental wellbeing has also been negatively impacted. This was particularly distressing for committee members to see, and we thank those who came forward to share with us so honestly the affect this project has had on their personal lives.”
The report recommends the Transport and the Small Business Commissioner encourage and support businesses to apply for financial assistance, “even in circumstances where businesses may not meet eligibility criteria”. Another recommendation urges Transport to continue to provide financial assistance until the project is completed, and a pair of recommendations address what steps should be taken to ensure the mental health of business owners is supported – and how this support can be better communicated to those in need.
Crucially, the report also addresses concerns over the effectiveness of Public Private Partnership contracts for significant state infrastructure projects, calling for a review by the Auditor-General at the request of the NSW Government.
“Serious questions have been raised in relation to the project’s timeframes and costs,” Nile writes. “It is already delayed by at least a year, and although Transport for NSW would like it to be finalised by December 2019, the official completion date is currently March 2020. There may also be a further two month delay, according to the evidence provided by ALTRAC and Acciona.
“In terms of costs, unresolved claims for contract modifications, undetermined penalties for delays, and a complex legal dispute between Transport for NSW and Acciona, have raised questions about whether the project will exceed its $2.1 billion budget. This is understandable, given a liquidity facility fund has had to be established for ALTRAC and the department has had to provide $100 million to a contractor to keep the project going.”