WA government facing $400m cost blowout over Peel Health Campus redevelopment
A status update for the Peel Health Campus states the project is $400 million over budget. (ABC News: Courtney Withers)
In short:
The cost of redeveloping the Peel Health Campus could be triple what was initially estimated.
It has sparked fears the cost blowout could eat into most of the $500m funding boost for health infrastructure announced earlier this week.
What's next:
There is still no timeline for when the redevelopment will be completed.
The long-awaited redevelopment of a major WA hospital is facing a $400 million cost blowout and potential delays, a leaked document reveals.
A project status update for the Peel Health Campus, seen by the ABC, estimates the redevelopment of the Mandurah hospital will cost $558 million, stating the "cost far exceeds the $152 million initially estimated in 2020".
That is more than three times the original price tag, sparking fears the project will hoover up most of the $500 million funding boost for health infrastructure announced on Wednesday.
Shadow Health spokeswoman Libby Mettam described the blowout as "astounding".
Shadow Health Minister Libby Mettam says the government has neglected the health portfolio. (ABC News: Jake Sturmer)
"The Peel Health Campus will suck up most of the $500 million the Cook government announced with so much fanfare earlier this week," she said.
"These massive blowouts happen when governments promise health infrastructure but delay delivery while prioritising spending on vanity projects such as the Burswood Racetrack."
Potential delays
The document, which provided a project status update to the government on April 30, 2025, described the budget status as "off track".
It highlighted other risks included "significant program schedule delay", and listed the forecasted completion date as "to be confirmed".
Locals have expressed frustration over the unclear timeline for the redevelopment, more than four years after the state government committed to taking the facility out of private hands.
Residents are eager for the upgrades to be carried out, citing long waits, staff shortages, bed shortages, and describing parts of the facility as "less than desirable".
The redevelopment is expected to include more inpatient beds, a new mental health inpatient ward and another operating theatre, and reconfiguration of the day procedure unit.
The emergency entrance at Peel Health Campus pictured in 2020. (ABC News: Briana Shepherd)
Information outdated, says government
WA's Health Infrastructure Minister John Carey said the $152 million figure was for forward works at Peel Health Campus, and more announcements would be made about the project's second stage.
"This document pre-dates the significant reforms we have made to the delivery of critical infrastructure," Mr Carey said.
John Carey says the $152 figure was the amount allocated for forward works. (ABC News: Keane Bourke)
"The Office of Major Infrastructure Delivery has now taken oversight of the Peel Health Campus redevelopment and is re-examining future delivery of the hospital."
Mr Carey said the half-a-billion-dollar health infrastructure fund would help accelerate the delivery of several projects, including the Peel Health Campus redevelopment and the Royal Perth Hospital redevelopment.
Responding to questions about the project being "off track" as reflected in the document, government minister Reece Whitby said the information was "old".
"It's been superseded by new information and a new approach by the minister [John Carey]," he said.
"At the moment the initial investment is there, it's the first stage of work and that's being rolled out as we speak," he said.
"Stage 1 is on track, that is the first stage of works, and we are going to be rolling out the next stage in Stage 2."
Mr Whitby defended the health infrastructure funding boost, saying it was a "very good investment" that would have "a big impact" on health infrastructure.
Loading...Loading