- Roe 8 Alliance workforce of 231 people to work on new projects
- Construction of Murdoch Drive connection to start in coming weeks
- Irresponsible decision by previous State Government to sign Roe 8 contract ahead of election costs taxpayers $46.9 million
A workforce of 231 people, previously employed for the cancelled Roe 8 project, will be reassigned to work on three alternative road upgrades.
Funding for the projects is the result of a new Commonwealth-State $2.3 billion agreement that includes the full relocation of funding from the cancelled Perth Freight Link project.
The new agreement safeguards Roe 8 jobs and will relieve congestion in the northern, eastern and southern suburbs of Perth.
The alternative projects negotiated from the Roe 8 contract will also create hundreds of other indirect job opportunities for local contractors and suppliers.
The Roe 8 renegotiation includes the following road projects:
- Wanneroo Road (Joondalup Drive to Flynn Drive) - Constructing Dual Carriageway (Project Costs: $31 million)
- Fiona Stanley Hospital and Murdoch Activity Centre access from Kwinana Freeway and Roe Highway - (Project Costs: $100 million)
- Armadale Road dual carriageway upgrade between Anstey Road and Tapper Road (Project Costs: $145 million).
Construction on the first of the three projects - the Murdoch Drive connection - is expected to begin almost immediately.
Meanwhile, the Wanneroo Road and Armadale Road dual carriageway upgrades will start construction during the 2017-18 financial year.
The Roe 8 Alliance contractors will be paid about $40 million for the work they have done so far while a further amount - less than $10 million - will be paid in lieu of their lost opportunity to fully recover overheads.
Total State Government expenditure on the Roe 8 project will be $85 million, however, after allowing for retained assets such as land, the written off costs total $46.9 million.
The alliance team will also collaboratively manage the rehabilitation of the cleared Roe 8 site in Coolbellup.
The program will be informed by a working group comprising representatives from the State and local governments, the local community and the alliance.
Comments attributed to Transport Minister Rita Saffioti:
"Had the previous government taken the conservative option of only clearing to Bibra Drive in the lead up to the State election then total expenditure on Roe 8 would have been $61 million and the written off costs would only have been $22.9 million."
"The alternative would have been contract termination, loss of jobs and a potential long and protracted legal dispute.
"We have worked closely with Main Roads, the Roe 8 Alliance and the Commonwealth Government to bring forward important projects that will relieve congestion, reduce journey times and improve safety in key locations on our road network.
"The WA public gave the McGowan Government a mandate to scrap the Roe 8 project and we have acted quickly to reassign the workforce to new congestion-busting projects."
Minister's office - 6552 5500