Report: The National Broadband Network Will Cost $5 Billion More On Contractor Demands

Anthony Albanese (C), Deputy Prime Minister of Australia pushes a large button to switch on the NBN fibre network to an adtional 2,600 homes and businesses in Brunswick at the Brunswick Digital Hub on July 24, 2013 in Melbourne, Australia. Photo: Getty

Demands from contractors working on the the National Broadband network will see the project’s cost blow out by $5 billion, according to the AFR.

The newspaper’s website this afternoon reported NBN Co chief operating officer Ralph Steffens briefed senior executives yesterday.

This comes after a number of contractors working on the project went to NBN Co for more money.

“Ralph said there was a $5 billion hole in the construction costs,” a unnamed source cited by the newspaper claimed. “He also said the good news was they’d discovered that by re-engineering and re-designing the network they could save that and more.”

NBN Co chief executive Mike Quigley is yet to comment.

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