An independent review led by economist Nicholas Gruen has found that the initial cost report of Tasmania's Macquarie Point stadium has been "significantly understated", stating that the true value of the project can balloon to over $1 billion.

Gruen was commissioned to write a report as part of the minority Liberal government's agreement with the Jacqui Lambie Network.

His report broke down the fundamental costs of delivering the stadium by the 2029 AFL season, which was a key component to welcoming the Devils into the competition.

However, Gruen's findings suggested that the project was "already displaying the hallmarks of mismanagement" from officials working within the confines of the agreement set upon them by the Tasmanian government as well as the supposed short-sighted $375 million commitment.

SEE MORE: Full report of the independent review of the Macquarie Point Stadium

Gruen found four central deficiencies throughout the process and indicated in his findings how the initial estimate of $775 million is below what should be expected.

  1. Hasty Process - Gruen has found that the decision to locate the stadium at Macquarie Point was only made by two parties - the AFL and the Tasmanian government - which has led to higher costs and lower benefits.
  2. Minimal effective consultation - the lack of consideration for the non-economical costs such as the impact on the Hobart Cenotaph and the wider social, economic and environmental amenity value of the Hobart waterfront.
  3. Inadequate and over-optimistic cost-benefit analysis - Analyses have taken little to no account of the opportunity cost of the site and have overstated economic spillover benefits from additional tourism
  4. Little joined-up planning - the Macquarie Point project has been isolated which Gruen believes could have benefitted from parallel development

The Tasmanian Government has continued to insist that its fiscal cap of $375 million can be met, which is close to half the estimated cost of the stadium.

Here's a breakdown of what Gruen found (per his report):

Item $ Million
Cost estimate 715
Additional costs in WT Partnership 60
(Initial) Cost estimate 775
Additional contingency 79
Goods Shed $ precinct-related costs 186
Revenue generating facilities 57
Total Costs 1,096
less external contributions
Federal Govt. 240
AFL 15
Revenue generating facilities 57
Land Sales 85
Tasmanian Govt. 785

 

A fresh report has also indicated a cost of $171 million over 30 years, which includes $62 million in upkeep and maintenance for the translucent roof, according to theย ABC.

Construction of the roof itself is estimated to be $207 million.

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.