Cost blow-out for BORR amid global cost pressures sparks funding boost

A further $400 million has been committed to the South West’s biggest ever road infrastructure project as the cost of raw materials continues to soar due to global supply-chain pressures.

Construction of the Bunbury Outer Ring Road has had a cost blow out to $1.25 billion — up from the previous $852 million price tag — after diesel and bitumen prices continued to soar amid supply issues stemming from the war in Ukraine.

In the past six months diesel prices have risen by 60 per cent and bitumen increased in cost by 20 per cent, resulting in significant cost blow-outs for the BORR.

Transport Minister Rita Saffioti announced the additional funding on Monday, with the extra funding included in the 2022-23 State Budget, which will be handed down Thursday night.

The Federal Government also committed an additional $320 million for Stages 2 and 3 of the BORR in its own Budget documents handed down on March 29.

This additional funding came after the Federal Government’s independent cost review into the project, which recommended more money be allocated to the project in the Federal Budget.

“The Bunbury Outer Ring Road is the biggest transport infrastructure project ever planned or executed for the South West, which is already generating significant local economic and job opportunities,” Ms Saffioti said.

Collie-Preston MLA Jodie Hanns said the funding boost for the project highlighted the significance of providing a safer and more efficient road system for the South West.

“It is important that money spent on our region with BORR stays in our region to provide further opportunities for the community and the $450 million targeted local spend is exciting for our local industry,” she said.