THE estimated total cost of the Albury hospital redevelopment has blown out from $558 million to $621.6 million.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The $63.6 million increase is revealed in a NSW Health Infrastructure project report made public as a result of a parliamentary order made by Greens MP Amanda Cohn.
The report is dated February 2024 and follows then premiers Dominic Perrottet (NSW) and Daniel Andrews (Victoria) announcing the Albury upgrade in October 2022 and setting out a budget of $558 million.
Four reasons are cited for the ballooning budget.
They are the cost of materials, a shift in industrial relations in the construction sector, market rates data tied to recent major hospital tenders and need for more design brief requirements.
Having flagged the $621.6 million cost, the report declares "to progress to final business case, the estimated total cost for the endorsed scope must be on budget at $558 million with all project contingencies included".
That means a reduction in spending costs related to the multi-storey clinical services building at the heart of the upgrade.
"Further design optimisation is required and will be necessary to demonstrate the ability for the project to be managed within the available budget," NSW Health Infrastructure declared.
The prospect of cuts to the project and that not all clinical services promised will eventuate has been made clear to NSW Health Minister Ryan Park.
In an information document provided to Mr Park before September last year, when the minister visited Albury, the financial pain was made clear.
"Initial cost planning indicates that not all priorities outlined in the project announcement will be affordable within the capital budget of $558 million," the report, revealed through Dr Cohn's order, stated.
"Additionally, the global escalation of building costs faced by the construction industry has subsequently placed considerable pressure on the project budget to deliver the announced scope.
"Health Infrastructure is working closely with AWH to prioritise scope and assess all available options."
Albury Wodonga Health chief executive Bill Appleby, speaking at the opening of Albury hospital's new emergency department earlier this month, referred to the budget strain when asked why he had written a letter to Mr Park and Victorian Health Minister Mary-Anne Thomas in December which highlighted concerns.
"Clearly there's pressure on the budget, the 558, and we were reconciling what was announced by our two premiers back in October '22 and what can be delivered reasonably," Mr Appleby said.
"We again just wanted to alert both ministers to the fact not all those announcements were going to be necessarily realised, but we're working through, as you heard the minister say today ... what is needing to be prioritised to ensure that we actually consolidate all acute services on this site within the first stage."
Mr Park was absent from the emergency department opening, despite the NSW government having contributed $30 million towards the $36 million project.
