Liverpool Plains Shire Council tied up with plans for Werris Creek Industrial Precinct beyond budget

Upgrades to the Werris Creek Industrial Precinct would provide benefits of up to $18.5 million and improve the area's safety.

The project, which would improve access from Werris Creek Road into the terminal where freight switches transport modes, is now estimated to cost an additional $4 million over and above what was originally planned.

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The initial budget estimates were said to have taken "an optimistic view of the project" according to a report presented to council at its meeting last week.

The initial designs assumed fill material would be provided by Whitehaven - without evidence of an agreement with the coal company, the report said.

Among other oversights, steel and fuel prices have risen significantly since the budget was developed, the report said.

The total budget for the project had been set at $9,146,000 - with $750,00 funded from council and $1,100,000 from Crawfords Freightlines.

The bulk of the funding is coming from the state government, after council applied for $7,296,000 based on the initial estimates, which was approved.

In August 2021, it was estimated the work would actually cost $15.3 million.

Council has been adjusting the designs to match the budget since April 2022, and the changes take the estimated cost to up to $13 million.

Council's capacity to complete its works is already under strain, with a number of grant applications awaiting notification, making it difficult to fund the difference.

The project would make the precinct safer by allowing heavier vehicles to access it, and reducing the number of trucks using the main street.

It would also reduce maintenance costs to council, increase flood immunity and boost safety with a bridge.

The only potential change to the plans that could save on costs would be to replace the bridge with a level crossing, the report said.

But an overpass provides a better long term solution, and a lower likelihood of additional costs in future.

Councillor Donna Lawson told council she was "concerned" about the status of the project meant to attract more industry to the area.

"I think it's a worthy project and it will only improve the Liverpool Plains Shire as a whole," she said at the meeting.

"Unfortunately, costs have risen a lot over the past couple of years.

"I do hope that we are able to get some sort of grant funding so we can get this project over the line.

"This project will make that area a lot more attractive going forward."

Council was told it risked losing state government confidence and affecting future grant funding opportunities if the project was canned.

The budget issues have already pushed the project beyond its approved start date.

A decision by council is needed before the end of November.

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