A BUDGET blowout of $13 million is predicted for the Tamworth Global Gateway Park (TGGP) and Intermodal Rail Hub project and ratepayers are demanding an itemised copy of the bill.
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The project has limped along for 30 months since the state government announced an initial $7.4 million contribution to build a rail line from the West Tamworth depot to the industrial estate.
Construction on the project began just this month, but there is still no finalised business case or budget that covers the entire rail hub project, Tamworth Regional Ratepayers' Association president David McKinnon said.
"The principal concern is the cost and the viability and we cannot find anywhere where a study has been done and I don't think it has been properly declared what the overall cost is going to be," he said.
"I think this is a case of build it and they will come, and that's frightening if it is ratepayer money, if it's not made clear now there will be a terrible cost to ratepayers later.
"We want a feasibility study before 10's of millions will be spent on this whole operation and we're left holding the bundle."
Tamworth Regional Council (TRC) approved changes to the operational plan this month, that detail a "potentially large estimated spend" that may occur in the 2020 to 2021 financial year that wasn't costed in the original plan.
The $13 million proposed spend includes an unapproved $2.2 million funding request from the Building Better Regions Fund.
That's because the complete business case for the multi-million dollar 246ha industrial park TRC purchased in 2016 and adjacent rail hub, still has not been finalised.
Business cases for parts of the project have been finalised, TRC general manager Paul Bennett said.
"We would not have been able to secure the multi-million dollar funding we have from the NSW Government and the Australian Government without a sound financial analysis and business case for the Tamworth Global Gateway Park project," he said.
"This site in Westdale is the future industrial growth area for the region. The current projects are at different stages of the development process and will activate further development of the park."
The council approved an additional $3.2 million contribution to the projects in February.
The $7.4 million provided by the state government covers just the rail line but does not account for the design of the roadways, crossings, culverts or works at the depot to allow the trains to be managed.
Transport for NSW, Qube, John Holland and TRC are all involved in the development.
The full business case for the two projects is expected to be finished by August and a new valuation report has been completed on the land at the industrial estate to help decide whether to sell it developed, or undeveloped, to prospective buyers.
The council had to provide an upper and lower budget limit to NSW Treasury by last Friday to be eligible for more grant money to finish the job.
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Transport for NSW did not know the exact cost, or what the finished rail hub would look like either.
"The detailed design of the Tamworth Intermodal Rail Line is being finalised and the design will be integrated into the Tamworth Regional Freight Terminal and drainage improvement works," a spokeswoman said.
"Some funding was brought forward to allow the early purchase of necessary equipment identified during the design process, to prepare the site and to commence earthworks as the design is finalised."
The project was announced in 2017 and was promised to bring up to 5000 new jobs to the city.
At that stage it was purported that the rail hub would be up-and-running in six to nine months.
Early work only began in April this year with the procurement of rail sleepers, fencing at some spots along the rail corridor and the removal of old infrastructure.
It is expected to increase freight for the region by 17 per cent by 2036.
Read Tamworth Regional Council's full statement below
Tamworth Regional Council General Manager Paul Bennett said local residents and ratepayers can be assured there have been detailed business cases prepared for the component projects necessary to activate the Tamworth Global Gateway Park.
"We would not have been able to secure the multi-million dollar funding we have from the NSW Government and the Australian Government without a sound financial analysis and business case for the Tamworth Global Gateway Park project," he said.
"It is important to understand what we are talking about is a Council-owned 246-hectare greenfield site at Westdale, which is slightly larger than the current Taminda area.
"This site in Westdale is the future industrial growth area for the region. The current projects are at different stages of the development process and will activate further development of the park."
"The projects which benefit from the government funding include the trunk stormwater drainage system for the park, a new five-legged roundabout to be constructed at the intersection of Country Road and the Oxley Highway, the Jewry Street bypass for heavy vehicles onto Wallamore Road, the intermodal freight hub within the park and the reactivation of the train line from the West Tamworth Rail Yard to the park.
"These are major infrastructure developments for our region to drive creation of new jobs and economic growth and it takes considerable time to make it happen."
The first financial support for the project came in November 2017 when the NSW Government committed $7.418 million for the first stage of a project to deliver an intermodal freight hub in Tamworth.
In September 2018, the Australian Government announced $4.53 million toward the cost of the Country Road/Oxley Highway roundabout. The NSW Government announced a further $20,246,000 in August 2019 to help fund the projects required to establish and activate the industrial and business precinct.
Councillors have agreed to spend a total of $2,753,100 as Council contributions to the different components of the project that have been funded by the NSW and Federal Governments.
Council has also approved expenditure of $502,000 for the demolition of a derelict building on the park site and the design development for roads and services for Goddard Lane and the Intermodal road access.
They have also asked the Director Regional Services to prepare a project business plan for the park for approval and consideration before the start of the Goddard Lane construction.
John Holland Rail, on behalf of Transport for NSW, has this week started work on the reactivation of the railway line.
QUBE Holdings, engaged by Council to construct and operate the intermodal, is at an advanced stage with the site design and preparation of reports for the development application for the operation of the facility.
In the next few weeks, Council expects to call for Expressions of Interest from those suitably qualified to undertake the sales and marketing of the Tamworth Global Gateway Park.