Irrespective of whether the cost increases related directly or indirectly to the CCT, effective monitoring and management of project costs is critical. The focus on protecting the financial offer and delivering the project at 'no net cost government' meant that all cost increases were passed on to motorists. We found no evidence of mismanagement of costs. But, our concern is that there was no strong incentive for the RTA to effectively manage its costs while it could pass them on to motorists.
It is also uncertain how future cost increases that are the responsibility of government will be dealt with.
First, costs may increase as a result of government policy changes. For example, if the Government required the tunnel to meet higher air quality standards, how would the Government pay for this? Under the structure of the deal, it might have been through further toll increases. Now that the Premier has accepted the Richmond Report recommendation to abandon 'the policy of motorway procurement at no cost to government', it is more likely that the Government would pay these costs.
Second, costs may increase as a result of open-ended conditions of approval. Some of the Conditions of Approval of the project are still unfinished. Their costs will presumably continue to increase, and it is not clear how they should be paid for.