The cost of Sydney’s new metro rail projects has blown out by $6 billion, with two of the lines now slated to cost more than double the initial estimates.
A state government budget review of the project blames “funding black holes” created by the former government, and said building three metro lines at once had pushed up prices by making the projects compete with each other.
It also found scope and design changes during the decade-long building process created cost pressures.
The budget review, released on Friday, said the latest estimate for the Metro West line, which will double rail capacity between Sydney’s CBD and Parramatta by 2032, is $27-$29 billion.
The City and Southwest line is now expected to cost up to $23 billion. (Supplied: NSW government)
In 2023, the government was estimated $25 billion, which was already a blowout of more than $12 billion beyond the initial price tag.
The City and Southwest line is now expected to cost up to $23 billion, which is more than double the $12 billion cited when the project was first announced.
‘Budget black holes’
Transport Minister John Graham said his government had discovered several cost blowouts, including $110 million taken out of the Metro West project to build the Eastern Creek Speedway — and never replaced.
“Our detailed review has identified cost overruns, budget black holes and the infrastructure equivalent of robbing Peter to pay Paul — or, in this case, draining a rail construction budget to build a speedway,” he said.
Mr Graham says the review uncovered “funding black holes” amid the blowouts to the cost of the metro lines. (ABC News: Abbey Haberecht)
The government also accused its predecessors of awarding tunnelling packages to private contractors that blew out by $500 million, but were not disclosed to the public.
Additionally, the Western Sydney Airport Metro may cost another $1 billion, due to legal claims being brought by the private sector delivery partner Parklife.
As a result, the Minns government is committing an extra $2.4 billion into the Sydney Metro build.
Ms Ward was critical of the government for releasing the information on a Friday. (ABC News: Justin Huntsdale)
Shadow Roads Minister Natalie War said the government was “taking out the trash” by releasing the document on a Friday.
“This government’s had three budgets to deliver this and a review into metro which they commissioned,” she said.
“If there were suddenly problems with this, why didn’t they come clean with the public when they did the review?”
NSW government data shows more than 66 million journeys were taken with the Sydney Metro in its first year of operation to August 2025, resulting in 3,500 fewer cars travelling southbound over the Harbour Bridge.