Western Australia is set to splurge $30.7 billon on major infrastructure work over the next four years after the state released its budget for the coming financial year.

And some projects have been pushed back to help allay industry concerns about capacity shortfalls.

The Western Australian Government has released its budget for 2021/22.

It estimates that a cash surplus of $1.8 billon will be achieved in 2021/22 and that the level of government debt will be reduced from $34.5 billion as at June 21 to $32.2 billion as at June 2022.

It also forecast that growth in the state’s economy will come in at 3.5 percent in 2021/2 before slowing to between 1 percent and 1.5 percent over each of the remaining three years in the forward estimates period.

A key part of the budget involves a record $30.7 billion program of infrastructure relates works over the next four years.

This includes

Major initiatives include:

  • $5.7 billon over four years towards fifteen METRONET rail projects which are planned or under construction. Projects funded in 2021/22 includes three which are near completion (Forrestfiel-Airport Link, Denny Avenue level crossing removal and the Manudurah Station multi-storey carpark; five which are under construction (Morley-Ellenbrook Line), Thornley-Cockburn line, Yanchep Rail Extension, the new Bayswater Station project, the new Lakelands Station and the new Thomas Road Bridge (part of the Byford Rail Extension); and projects under procurement including the Victoria Park-Canning level crossing removal, the Byford Rail Extension and the High Capacity Signalling Project.
  • $11.7 billion work of road projects. In 2021/22, this includes works such as Tonkin Gap (as part of the Tonkin Corridor Upgrade); the Great Eastern Highway Bypass Interchange, the Roe Highway and Kalamunda Road interchange, the North Lake Road and Armadale Road bridge over the Kwinana Freeway and various projects associated with the Mitchell Freeway.
  • A range of works associated with the $1.5 billion Perth City Deal, such as the new Edith Cowan University Campus in WA, the new Swan River Causeway Cycling and Pedestrian Bridge, development of Perth Concert Hall into a premier world class music venue, redevelopment of the WAVA Ground to transform it into a community aquatic facility and establishment of the Aboriginal Cultural Centre located near the Derbari Yerrigan (Swan River)
  • Climate action initiatives include expanding the state’s softwood plantation estate; renewable energy initiatives including standalone power stations, clean energy in schools, wind turbine manufacturing, refurbishment of Denham Power Station and research into green steel; climate related initiatives to create resilient communities, new renewable hydrogen initiatives and grants for carbon innovation and to manage coastal erosion.

In addition, the state has also delayed delivery times of some projects in response to construction sector pleas to smooth out the project pipeline.

This is happening amid concerns that shortages of workers, equipment and supplies could place pressure on project costs and timelines amid the combined impact of COVID related disruptions along with concerns that Western Australia’s construction sector will need to compete with the construction sector elsewhere in Australia and internationally as a massive volume of infrastructure work is underway.

The moves were also undertaken to provide the industry with a more stable pipeline of work and thus to provide greater certainty, industry confidence, job security and training.

The adjustments follow a review of the Asset Investment Program (AIP).

As part of the review, completion dates for the following projects have now been pushed back:

  • Casuarina Prison Expansion Stage 2 completion deferred from late 2023 to late 2024;
  • Tonkin Highway Grade Separations – Welshpool Road and Hale Road – deferred 12 months, completion now expected in mid-2025;
  • Tonkin Highway-Kelvin Road Grade Separation deferred two years, completion now expected in 2025‑26;
  • Roe Highway-Great Eastern Highway Bypass including Abernethy Road – timing of works adjusted, no expected material delay to 2024 completion date;
  • Manuwarra Red Dog Highway Stage 4 delivery timeframe extended one year (supporting Aboriginal employment), completion now expected in 2024-25;
  • Great Northern Highway-Bindoon Bypass (new alignment) works deferred two years, completion now expected in 2026;
  • Reid Highway grade separations at Altone Road, Daviot/Drumpellier Drive, and West Swan Road deferred one year, completion now expected in 2026;
  • Balga TAFE upgrade deferred one year, completion now expected in mid-2024;
  • Armadale TAFE campus deferred one year, completion now expected in mid-2024;
  • Joondalup Light Auto Workshop deferred one year, completion now expected in mid‑2024;
  • Albany TAFE upgrade deferred one year, completion now expected in mid-2024;
  • Muresk New Trades Workshop deferred five months, completion now expected in early 2023;
  • Thornlie-Cockburn Link deferred one year, operations now to commence in late 2024;
  • Yanchep Rail Extension deferred one year, operations now to commence in late 2023;
  • Port Hedland Spoilbank Marina deferred one year, completion now expected in 2022‑23;
  • Geraldton Finfish Nursery deferred one year, completion now expected in mid‑2023.