North Sydney Pool re-opening delayed until 2024, costs explode to $89 million.

By ANNA USHER

The cost of North Sydney’s Olympic Pool rebuild has exploded to at least $89 million – $31 million more than the original estimate, according to an independent review commissioned by Council.

The controversial project is also months behind schedule, with the re-opening set down not before April 2024, a year-and-a-half beyond the original November 2022 completion date.

The Price Waterhouse Coopers report, made public last Friday, has found several external factors are responsible for the cost blowout and delay, including La Nina, supply chain issues and the discovery of hazardous material on the site.

The redevelopment began in March 2021, including upgrades to the indoor and outdoor pools, a new 970-seat grandstand, a children’s water play area and an expanded gym.

The report said Council had limited experience in delivering infrastructure projects of such a large scale and complex nature.

In an open letter to the community, North Sydney Mayor Zoe Baker said the findings of the independent review have made it clear “the budget for the project was not sufficient in the first place”, resulting in “false economies”.

These included removing the external project managers, deciding to proceed with separate design and construct contracts, and not allowing a contingency that considered the risks relevant to the project, Mayor Baker said.

“Costs such as the fit out of the gym and creche required repairs to the Aqua Dining building and eastern stair tower were not included in the project, nor was sufficient funding for internal project management costs and consultancy.”

She said residents should factor in that several local upgrades, like road and footpath works and the Neutral Bay Town Centre improvement, could now be impacted thanks to the Olympic Pool budget surge.

“This Council understands that it comes at an opportunity and social cost to residents and ratepayers who will not get upgrades to other facilities they regularly use,” Mayor Baker said.

“When Council’s operational plan and budget for the 2023/24 financial year go on public exhibition in May, I encourage you to take a look at the projects proposed to be deferred and take the time to share your views.”

“This Council cannot change the past or alter previous decisions. This Council is taking responsibility for the project and is committed to sustainably managing the financial burden and delivering an exceptional experience for pool users.

“Please be patient a little longer – the pool you know and love will be back next year to serve our community for the next 80 years.”

The Council has accepted all 16 findings of the review and has committed to adopting all 33 recommendations. This includes engaging a quantity surveyor to assess any cost and delay claims and employing a pool manager to help form a business case for the facility.

The matter will be debated at a council meeting on April 26.