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Over the past decade the NSW Government’s unprecedented investment in infrastructure has set in motion a once-in-a-generation transformation across our state.
From local schools to life-saving hospitals, massive motorways to modern metros, this decade of delivery has connected communities like never before, and brought world-class frontline services within local reach.
We have rolled out the biggest infrastructure program in Australian history, including the first stages of WestConnex – the largest single infrastructure project in the nation.
Since 2011 the government has invested over $178 billion in transformative projects. Since just 2016, around 260 projects with a combined total value of more than $64 billion have been completed, transforming both metropolitan and regional areas of the state.
Delivering an infrastructure program of this scale has been made possible by the state's strong economic and fiscal credentials, together with a ground-breaking asset recycling strategy.
This wave of infrastructure construction has supercharged our economy, creating many thousands of jobs and providing a secure pipeline of work for local businesses.
While NSW has had a decade of delivery, now other states and nations around the world are also ramping up their project pipelines in the aftermath of the COVID-19 pandemic, and a range of challenges in project delivery have begun to emerge.
These challenges include constrained market capacity, particularly for large, complex projects, where a limited field of contractors may put pressure on timing and cost.
Construction programs are also being affected by disruptions to supply chains caused by the pandemic, with persistent backlogs contributing to rising costs of building materials, delayed shipping and equipment orders and material shortages.
In a broader environment of rising labour costs, skills shortages in the construction industry are expected to place increased pressure on pricing. Infrastructure Australia has collated data from the states (including NSW) to support this.
These new challenges are not unique to NSW, cost escalation is a worldwide issue. Mitigating the impact may require us to make strategic adjustments to the sequencing of large, complex projects, and adapt our program where necessary to ensure best value for our state.
However, the NSW Government is seasoned in delivering major projects and with strong assurance disciplines and exceptional working relationships with industry participants, our State is uniquely well placed to minimise the impact of these emerging global challenges.
Given that NSW is home to more manufacturing than any other state, we will also explore opportunities to leverage our state’s local manufacturing smarts to ensure a competitive local construction industry.
We are maintaining an adaptable approach as we continue to investment in communities, to ensure the right projects are delivered at the appropriate time and at the best value to taxpayers.
The government will continue to deliver transformational mega projects, in addition to a wide range of smaller scale projects which are simpler and repeatable and can be delivered more easily by mid and smaller-scale construction sector firms. These projects include regional roads, pinch-point and school upgrades.
Programs like the $5 billion WestInvest fund are also focussed on delivering smaller-scale infrastructure and facilities in Western Sydney to improve quality of life at the local level.
Despite difficult conditions, and regardless of any potential need to adapt, it is clear that NSW is set to remain the megaproject capital of Australia, as we power forward with a record infrastructure pipeline. In doing so, we will carefully navigate the challenges emerging in the sector both nationally and globally, harnessing our long-standing experience to ensure the best possible outcomes for the people of NSW.
WestInvest
A $5 billion fund for infrastructure and facilities in Western Sydney to improve quality of life
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