The cost of widening Hobart’s Southern Outlet has blown out by another $32 million, with the state government now asking the Commonwealth for an advance on funds originally set aside for a later stage of the project.
The state government promised in 2018 to add a fifth lane to the heavily congested highway linking the city with its southern suburbs and other neighbouring towns.
The Southern Outlet is one of Hobart’s major arterial roads, connecting the city to the southern regions. (ABC News: Kate Nickels)
At the time, the cost of adding the transit lane between Tolmans Hill and Macquarie Street was estimated at $35 million.
By 2024, the estimated cost had risen to $62.5 million due to engineering challenges and post-COVID cost escalations.
It can now be revealed that the project is expected to cost $95.1 million.
That cost does not include a later stage of the project that would seek to widen part of the highway between Kingston and Tolmans Hill, which is currently uncosted but has $80 million in federal money promised.
Details of the blowout emerged following questions on notice to Infrastructure Minister Kerry Vincent in a budget estimates hearing earlier this month.
In his answer, which was tabled in the Legislative Council late last week, Mr Vincent said the updated figure included:
- $7 million for the transit lane connector between Davey and Macquarie streets, which has been completed.
- $1.1 million for Olinda Grove roundabout traffic lights at Mount Nelson, due to be completed by the end of July.
- $4 million for rock face protection and stabilisation work on the embankment between Olinda Grove and “Cats Eye Corner”, which is due to be tendered mid this year.
- $83 million for construction of the transit lane from Olinda Grove to the completed connector at Davey Street. There is no date for the expected completion of this part of the project.
The transit lane connector between Davey and Macquarie streets has already been completed. (ABC News: Kate Nickels)
The updated cost estimate reflected rising construction and material prices linked to global economic factors, the Department of State Growth said.
Mr Vincent said the Tasmanian government had committed $39.4 million towards the northern section of the project.
He said a $55.6 million funding shortfall remained for that section.
Kerry Vincent provided the updated project cost following questions during a budget estimates hearing. (ABC News: Simon Farrell)
Tasmania seeks federal help to complete northern section
The state and federal governments have promised to widen a separate section of the highway between Kingston and Tolmans Hill.
The federal government committed $80 million for that southern section of the project in 2025, while the state government promised $20 million in 2024.
The widening of the Southern Outlet between Kingston and Tolmans Hill has yet to be costed or given a date. (ABC News: Kate Nickels)
But in his response, Mr Vincent said no planning or design work had started in relation to the southern section and consequently no cost estimate had yet been prepared.
He said the state government had requested the federal government reallocate some of its funding for the southern section to complete the northern section.
“This would allow construction of stage 3 [between Tolman’s Hill and Macquarie Street] to proceed on completion of the rock face protection and stabilisation works,” Mr Vincent said.
Houses were demolished to make way for the outlet’s fifth lane. (ABC News)
A spokesperson for Federal Infrastructure Minister Catherine King told the ABC no decision had been made on the proposed funding application.
“It will be considered through the usual budget process,” they said, noting the next opportunity would be December’s Mid-Year Economic and Fiscal Outlook.
The state Labor opposition has been a vocal critic of the project and promised to scrap it during the 2024 election campaign.
