Project owners of West Gate Tunnel PPP project in Melbourne, Transurban, have notified Australian Securities Exchange that the builders on their AUD 6.7 billion (USD 4.5 billion) project - CPB Contractors and John Holland are seeking to terminate their contract. The request is based on the fact that dangerous PFAS contaminants were found in the soil and they constitute a “Force Majeure Termination Event.”

The West Gate Tunnel Project is a city-shaping project that will deliver a vital alternative to the West Gate Bridge, provide quicker and safer journeys, and remove thousands of trucks off residential streets. The project is located in Melbourne’s inner west and will become the city’s alternative to the West Gate Bridge. A tunnel from the West Gate Freeway to the Maribyrnong River and the Port of Melbourne which will take motorists and trucks underground and off residential streets, providing a more efficient freight route.

The builders have notified about the intention to terminate the contract over the PFAS 6 month ago.

The Government is expecting the project to be completed on schedule by 2022. The Transport Infrastructure Minister has talked to Transurban and she expects the three companies to resolve the issue.

It is understood that the builders are not able to remove contaminated soil because of lack of official classification which means there is no landfill for legally dumping the contaminated soil.

Download our free Australia PPP Market report:

https://www.infrapppworld.com/report/australia-ppp-market-2019

You can also find more free reports here.