Revealed: Bigger bill and higher towers for Parramatta’s new metro station

The cost of building an underground metro station in Parramatta has surged to $880 million, an increase of nearly 50 per cent on what the government agency overseeing the mega-project had forecast in leaked documents a year ago.

Four towers of up to 43 storeys will be built above or next to the new Parramatta railway station following the planned opening of the 24-kilometre Metro West line between Sydney CBD and Westmead in 2032.

The over-station development just north of Parramatta Square will feature 470 apartments – up from 111 outlined in concept plans – and 500 units for student accommodation. It will feature pedestrian laneways and a landscaped park that will form part of a civic link connecting the station to the new Powerhouse Museum and Parramatta River foreshore.

A 43-storey tower comprising the 470 build-to-rent apartments will be five storeys higher than originally outlined in the concept plans. Subject to planning approval, a 29-storey office building, a 24-level tower for student accommodation and an eight-storey hotel will also be built on the site.

The $880 million price tag for the design and construction of the underground station on the Metro West line is also more than double what Sydney Metro estimated internally six years ago, highlighting the extent to which the cost of the government’s signature rail project has skyrocketed.

The Herald has previously obtained confidential forecasts by Sydney Metro that show it anticipated last year the Parramatta station would cost about $600 million, which was up from an estimate in 2020 of $380 million. The station at Parramatta is regarded as the most complex on the Metro West line because of risks inherent in building on a floodplain.

A joint venture led by Malaysian engineering giant Gamuda has been awarded the $880 million contract for the Parramatta metro station, construction of which will start in the middle of next year.

Hong Kong’s MTR, which leads a consortium that runs Sydney’s M1 metro line, is part of the joint venture set to build the station and previously won a contract to operate and maintain the Metro West line for 15 years.

The figure excludes the cost of excavating a giant hole – 196 metres long and 25 metres wide – for the station, as well as the twin rail tunnels that connect to it.

Coalition transport spokesperson Natalie Ward said indecision, a government-commissioned review into Sydney’s metro projects and delays had cost taxpayers more than a quarter of a billion dollars extra for a single station.

The government confirmed last December that the total cost of Metro West would blow out by as much as $3.7 billion to $29 billion. A major contributor has been the skyrocketing cost of stations.

Transport Minister John Graham said the cost of the Parramatta station was “fully accounted” for in the project’s budget update made public last December. “We were up front about the cost pressures metro projects are under,” he said.

“The Liberals can’t be taken seriously on metro costings. The three metro lines were first discussed by the former Liberal government with a $30 billion price tag, whereas the true cost is closer to $60 billion.”

Sydney Metro said the contract value reflected challenges of constructing a major underground station and integrated development within the busy Parramatta CBD, including those associated with construction on a floodplain.

“The cost increase, as has been the case across much of the civil construction sector, is primarily due to significant industry-wide increases in labour, material and delivery costs, which have driven construction cost escalation across the market,” it said.

The agency said that provision for station delivery was incorporated into the project budget in December, and it “remains within that budget despite broader market pressures”.

Unlike stations under Pyrmont and Sydney CBD for Metro West, the Parramatta station is a cut-and-cover site, which involves digging a giant hole and later building over the top of it. The 31-metre-deep hole for the station has required a significant number of large support beams because much of the earth is comprised of clay due to proximity to the Parramatta River.

As part of the latest deal, Gamuda and MTR will share development rights for the towers above and beside the station.

Gamuda led a consortium that built a nine-kilometre stretch of twin tunnels between Westmead and Sydney Olympic Park for Metro West. Last December, the Malaysian company won a $2.85 billion contract to build stations at Westmead, North Strathfield, Burwood North, Five Dock and the Bays in Rozelle.

The government has said that contracts for Metro West stations at Sydney Olympic Park and Pyrmont will be awarded by the end of the year.

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