Upkeep and maintenance estimates for the proposed Macquarie Point stadium in Hobart have been revealed in addition to the construction costs — but it’s yet to be determined who will foot the nine-figure bill.
The ABC has obtained a detailed cost estimate document from the Macquarie Point Development Corporation (MPDC) under right to information laws.
MPDC had previously only publicly released an abridged four-page estimate, however the full document runs to 106 pages and includes until-now unreleased costs.
It shows that the cost to maintain the stadium is estimated to run to more than $171 million over 30 years, which includes $62 million in upkeep and maintenance for the translucent roof.
The cost estimates have a lengthy list of new items not yet accounted for, including pitch equipment, financing and legal costs, control room fit-outs and Stadiums Tasmania offices. (Supplied: Macquarie Point Development Corporation)
Other lifecycle costs include $21 million for facade costs, $19 million market loading for non-local trades, and $10 million for electrical and IT.
This is in addition to the current construction estimate of $775 million.
The document — completed by quantity surveyor WT Partnership in July — also estimates that a 12-month delay in construction would see the stadium costs increase by $82 million to $857 million.
It shows MPDC will spend at least $65 million on consultant fees, including for architects, building surveyors and construction advisers, which is included in the total stadium cost.
The cost estimates have a lengthy list of new items not yet accounted for, including pitch equipment, financing and legal costs, control room fit-outs and Stadiums Tasmania offices.
The AFL’s contract with the Tasmanian government includes a requirement for a fixed ethylene tetrafluoroethylene roof, and stipulates that the government is responsible for the management of cost overruns.
The stadium business case estimated a cost-benefit ratio of 69 cents for every dollar spent. (Supplied: Macquarie Point Development Corporation)
Last month, the government started to gauge private sector interest in the Macquarie Point precinct — a precursor to a public-private partnership.
A spokesperson for MPDC said the lifecycle cost was only an early estimate.
“The lifecycle costs developed to date are estimates only at this early stage, and were compiled to inform the economic modelling and analysis required for the Project of State Significance application,” they said.
“The actual approach to maintenance and management of the multipurpose stadium will be further assessed and considered to support efficient management by the owner and operator of the facility, and will be offset by any revenue generated.”
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The stadium would be owned and operated by public entity Stadiums Tasmania.
The stadium business case, by KPMG, estimated that it would have a $2.14 million operating deficit, excluding lifecycle costs.
It also estimated a cost-benefit ratio of 69 cents for every dollar spent, but economist Nicholas Gruen — in a report released last week — estimated this could be closer to 44 cents.
The government and AFL both say the stadium must be built at Macquarie Point. (Supplied: MPDC)
Calls for ‘transparent process’
The way lifecycle costs — such as upkeep and maintenance — are managed will be determined by the public-private partnership agreement.
The government is believed to be pursuing a “design, build, finance and maintain” model, similar to how Optus Stadium in Perth was financed and constructed.
The private consortium would have responsibility for financing, management and maintenance of the precinct, with the government to make payments to it over the life of the deal, likely to be 25 or 30 years.
Premier Jeremy Rockliff has promised the government will not spend any more than $375 million on the stadium.
Dr Gruen said public-private partnerships typically included incentives for private investors, questioning whether the government could stick to its promise.
“One of my recommendations was that this be subject to independent scrutiny as you go,” he said.
“And if that doesn’t happen, I’d be reasonably confident that the deal will not be a good one.”
Some of the items excluded from the costs include those that are expected to be funded by the private sector, which might also be revenue-generating aspects of the stadium.
Dr Gruen said that when it comes to lifecycle costs — like upkeep and maintenance — there’s “oodles of different ways that people can slice up the pie”, but it required a transparent process.
David Hayward, an emeritus professor of public policy and social economy at RMIT, said investors would be expecting a 15 per cent return on their contract for the Macquarie Point stadium.
Stadium supporters often display stickers on cars to show their support. (ABC News)
Deal ‘stacks up’ says premier
A government spokesperson said agreements to fund lifecycle costs were still to be determined.
“Responsibility for lifecycle costs will ultimately be determined by asset management and operational agreements to be entered into, to be offset against revenue and may differ across stadium asset classes,” they said.
Neither Premier Jeremy Rockliff nor the minister responsible for the stadium, Eric Abetz, have fronted the media since the release of Dr Gruen’s report.
Mr Rockliff instead posted a statement on social media platform X, as well as to a pro-stadium Facebook group, in which he said the stadium “stacks up”.
The government is facing increasing pressure to attempt to renegotiate aspects of the deal with the AFL in light of the release of Dr Gruen’s report.
The report was commissioned as part of the minority government agreement with the Jacqui Lambie Network (JLN).
Rebekah Pentland, who has since left the JLN to sit as an independent, said their supply and confidence deal with the government wasn’t at risk, but she wanted to see changes.
“I think it’s been disappointing thus far with what the premier has done with the report,” she said.
“I think they should look at it in great detail, and take some of those recommendations, and really look at renegotiating that deal with the AFL.”
