Further to the recent announcement that the recommencement of the Mary Valley Rattler will be delayed, costs have now been finalised following the review of the rail infrastructure due to a number of additional components requiring replacement beyond what was listed in the specification documents prepared earlier this year by an external contractor.
“There’s no doubt we are disappointed in the deficiency of the documentation which was delivered to council.” Mayor Mick Curran said. “It has delayed the project and increased the costs.”
“However we need to get on with the project and we need to address the shortfall and deliver infrastructure that is safe, sustainable and will minimise the ongoing maintenance costs for the Rattler Railway Company.”
Council is also reviewing the adequacy of the contract specifications prepared by the external consultant. As this is a legal matter which is being pursued, Gympie Regional Council cannot comment any further on the matter.
The overall project cost has increased by $2,013,460.00 due to the additional work required. Further to this, the Rattler Railway Company will have a significant shortfall in revenue due to the delay.
The opening date will also reflect the work required, with completion scheduled late autumn 2018.
Gympie Regional Council will bring forward operating support payments for the Rattler Railway Company scheduled for 2018 and 2019 in the amount of $200,000 plus a loan of up to $500,000 to be repaid over 7 years. This amount is required due to the delay in opening the business and the subsequent loss of revenue.
Council endorsed the increased costs at the Ordinary meeting today.
“When we started this project, it was always to deliver a quality, tourism and experience based business that will give true economic growth to our region. We know the project is already delivering for our economy when we look at the number of local contractors engaged.”
“There’s no doubt it will bring visitors to the region as we know the long term benefits the project will deliver. This project will give Gympie one of the most unique tourism experiences in South East Queensland.” said Mayor Mick Curran.
Council will be reviewing its capital works budget at its next quarterly review to identify the source of the funds, noting there are always projects which are adopted but then for a range of legitimate reasons, are deferred to the following financial year.
Track and Bridges Budget as at 28th July $ 9,487,323.00
Additional funds required $ 2,013,460.00
Updated Track and Bridges Budget $11,500,783.00
Project Budget as at 28th July $12,487,323.00
Updated Project Budget $14,500,783.00
State Government funding $ 7,000,000.00
Council funding $7,500,783.00