The Tasmanian government has announced plans to fast-track the delivery of the Macquarie Point Multipurpose Stadium project in Hobart by implementing a ‘design and construct’ procurement approach.
The project aims to deliver a 23,000-seat stadium that will house a new Australian Football League (AFL) franchise, as well as stage cricket matches and other events.
The government has taken the decision to fast-track the project following a market-sounding exercise, which sought feedback on the procurement and delivery options available for the Macquarie Point Precinct.
The news comes after it emerged last month that the state government would be introducing legislation that aims to progress approvals for the project. This would bypass the current planning process that received significant criticism, notably from the Tasmanian Planning Commission (TPC).
In March, plans for the stadium were criticised by a TPC panel, which found the costs of the project to be around double its estimated benefits. The Macquarie Point Development Corporation (MPDC) submitted its application for the project in September last year, as the price tag rose to A$775m (£375m/€442m/$500m).
The government has now opted to pursue a ‘design and construct’ procurement methodology as opposed to a public-private partnership model. Australian broadcaster ABC has reported that the government will fund construction of the project through debt obtained from the MPDC. This would be in addition to the A$630m in funding already committed from the state and federal governments, as well as the AFL.
The state government has said a public-private partnership model would cost the taxpayer more, take longer to implement and take away from the asset being owned by the Tasmanian people.
Eric Abetz, Tasmania’s Minister for Business, Industry and Resources, said: “We cannot afford any delays if we are to meet existing timeframes set out in the AFL agreement. Without a stadium, there is no Tasmanian AFL team.”
The wider activation of the Macquarie Point precinct will take shape as the stadium progresses through construction. Activation will occur through the staged release of commercial development opportunities to attract the right investments, the government said.
A procurement process for the stadium will commence following the passage of enabling legislation through parliament.
