A parliamentary inquiry into the South East Light Rail Project in Sydney has recommended a review for the effectiveness of public-private partnerships (PPPs) in delivering significant infrastructure projects. 

The light rail project was initially due for completion in 2019 but has been delayed to May 2020. The expected construction cost has also increased at least AUD2.1 billion (US$1.5 billion) from initial estimates of AUD1.6 billion (US$1.1 billion). 

The Legislative Council’s Public Accountability Committee released recommendations for the project citing that the delay of the project has “contributed to the distress of residents and businesses”. The council suggested that once the CBD and South East Light Rail service becomes operational, Transport for NSW closely monitor patronage on the service, to ensure it can respond effectively to future demand. 

It also recommended that Transport for NSW review the effectiveness of its communication strategy for the projects and conduct an urgent review of all claims of property damage, with a view to providing compensation for residents whose properties have been found to be adversely impacted by the CBD and South East Light Rail project.

The inquiry comes after the legal dispute between private partner Acciona and Transport for NSW. Acciona alleges that the government misled the contractor as to the scope of works required before the signing of the PPP contract in 2014.