Plans to build Australia’s largest marine observatory in the South West have hit a hurdle after the project came in more than 50 per cent over budget amid rising construction costs.
Plans to build Australia’s largest marine observatory in the South West have hit a hurdle after the project came in more than 50 per cent over budget amid rising construction costs.
Business News understands the non-for-profit group spearheading the project, Busselton Jetty Inc, confirmed the estimated $32 million cost of the Australian Underwater Discovery Centre (AUDC) and Food and Beverage Village was now expected to cost close to $50 million during an annual general meeting overnight.
It is understood the cost hike is the result of major cost increases for the project’s major contractor, Henderson-based subsea solutions company Subcon Blue Solutions.
Subcon has encountered a 63 per cent increase in steel, concrete and materials, a 280 per cent increase in shipping costs and a 40 per cent increase in labour costs.
In a statement released this afternoon, Busselton Jetty Inc chairperson Barry House said it was extremely disappointing the market had seen such a large increase in construction costs.
Mr House confirmed the group’s board would now be investigating all options to determine whether the project could still go ahead, with the organisation having already secured $22.5 million in state and federal government funding and $10 million through reserves and a self-supporting loan with the City of Busselton.
“It seems like we have been hit twice, once by the impact of international and interstate borders closing for COVID and now again with massive price increases for steel, freight and labour costs,” he said.
“The AUDC was our plan to kickstart tourism again post COVID at the Busselton Jetty, to ensure that we continued to have enough money from tour ticket sales to fund ongoing Jetty maintenance.”
But a spokesperson told Business News the proposal was still expected to reach the Regional Joint Development Assessment when it meets on Monday.
The proposal would involve the construction of a new four-storey whale-shaped Underwater Discovery Centre which will connect to the existing jetty via a bridge and feature a reception and briefing area, outdoor terrace, a dining space, function room and an art gallery.
Busselton Jetty Inc has also proposed the construction of a Jetty Village Precinct on the structure, with a restaurant capable of hosting 300 people.
The new observatory is being fabricated off-site by Henderson-based subsea solutions company Subcon Blue Solutions and towed 185 kilometres to Busselton over three days, where it will be installed in eight metres of water 1.7km along the jetty.
The observatory was scheduled to be installed in late 2022.
