Why the new Opal ticketing system is at risk of costing an extra $171m
The state government's infrastructure adviser has put the project under greater scrutiny because of its complexity and scale, forcing Transport for NSW to provide greater contingencies in its funding.
Dubbed Opal Next Gen, it is now budgeted to be a $738 million project, up from $568 million previously. Infrastructure NSW has changed Opal Next Gen from a 'tier two' to a 'tier one' project, which means the transport agency has to be 90 per cent sure the final cost will fall within budget.
The project involves replacing 25,000 electronic readers on buses, at train stations, light rail stops and ferry wharves. Planned features of the new system include allowing concertgoers to use event ticket QR codes to catch public transport, while concession fares will be easier to access for those eligible.
Transport for NSW secretary Josh Murray said the extra contingencies in funding for the project provided surety of having 'enough budget headroom'.
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'When they are at this scale, it means you've got to put aside more in the kitty to have a buffer before you start to get into contracting. This $170 million on-paper change to the project is a requirement of the accounting rules,' he said.
The government had planned to complete the rollout of the new Opal system next year, four years after it was announced. However, the Herald has previously reported that Transport for NSW is now targeting September 2027 as a 'go-live' date for the ticketing system.
More than eight months after tenders closed, Transport for NSW is yet to reveal short-listed bidders for the main contract to overhaul the ticketing system, and another for new bus technology that will offer passengers extra real-time journey information via mobile devices.
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