The Tasmanian Government has ruled out private sector partnerships for building the multi-purpose Macquarie Point stadium, instead choosing a “design and construct” model funded through government borrowing.
The move comes after a market sounding process explored different delivery options for the major development on Hobart’s waterfront.
“Feedback from the market sounding process was crucial in understanding how to activate the precinct in a way that unlocks decades of economic investment, jobs and opportunities,” Business, Industry and Resources Minister Eric Abetz said on Monday.
“The decision to prioritise the delivery of the multipurpose stadium through a design and construct pathway provides certainty and confidence in the future of the precinct and the Tasmania Devils AFL club.”
Construction will be funded through debt raised by the Macquarie Point Development Corporation (MPDC), on top of the $630 million already committed by the state and federal governments and the AFL.
While several infrastructure funders had expressed strong interest in a public-private partnership model, the government determined this approach would ultimately disadvantage Tasmanians.
“… It would cost the taxpayer more, take longer to implement and take away from the asset being owned by and for the Tasmanian people,” Minister Abetz said.
“We cannot afford any delays if we are to meet existing timeframes set out in the AFL agreement. Without a stadium, there is no Tasmanian AFL team.”
The stadium, last officially estimated to cost $775 million but independently assessed at closer to $900 million, is facing a funding shortfall of at least $145 million.
That gap is expected to be covered by borrowings of more than $200 million.
To help cover the cost, reports suggest the government plans to sell parts of the broader Macquarie Point precinct to private developers as the stadium project progresses.
These sites include around 17,000 square metres of commercially zoned land and a future underground car park.
“Activation will occur through the staged release of commercial development opportunities to attract the right investments, at the right time and to maximise the potential returns for Tasmanians,” Abetz added.
“The transformation of Macquarie Point will shape Tasmania for generations and I know many will be excited by the prospect of being involved.”
Borrowing isn’t expected to begin until around 2027, with the stadium slated for completion by 2029.
Abetz said the procurement process for the stadium would begin once enabling legislation passes through Parliament.
