The state government is “100 per cent” committed to Parramatta Light Rail.
The assurance from Parramatta MP Geoff Lee follows reports that costs have ballooned to more than $3.5 billion – $2.5 billion above what has been budgeted.
The business case revealed the project won’t generate as much benefit as it costs.
“We always knew it would cost significantly more than what’s been committed,” Dr Lee told the Sun.
“We’re looking at a value share model where developers that will benefit from the project will contribute towards it. It will cost extra but developers don’t mind.”
Premier Mike Baird’s recent backflips on the greyhound racing ban and shark net bans fueled speculation the project will be derailed.
“It will go ahead – there are 60 staff already working on the project,” Dr Lee said.
He admitted the project is likely to be built in stages.