NSW Auditor General: The Cross City Tunnel Project

Publication Date
01 January 2006

This report by the New South Wales Auditor General presents the results of a 2006 audit of the Sydney Cross City Tunnel Project.

The Cross City Tunnel was part of government strategy to reduce surface traffic in Central Sydney. However, the audit finds that it is not achieving its patronage targets and there is significant public criticism of the toll and the traffic management changes.

This audit report focuses on three key issues:

  • Was the upfront payment a legitimate reimbursement of necessary expenditure?
  • Were the variations to contract in December 2004 reasonable and handled appropriately?
  • Were the changes to surface roads based on a robust assessment against stated objectives?

The report raises issues relevant to agencies involved in privately financed projects. It highlights a range of issues of importance, lessons that can be learnt from the project and a range of recommendations for better management of future projects involving private investment.