Particle.news

Download on the App Store

Contractor Abandons Sydney’s $3.1 Billion M6 Tunnel Project After Prolonged Setbacks

The CGU joint venture formally terminated its contract, halting tunneling indefinitely as the NSW government explores legal and technical solutions to resume work.

Image
Image

Overview

  • CGU, comprising CPB Contractors, Ghella, and UGL, notified Transport for NSW of its decision to terminate the M6 Stage 1 contract, citing unanticipated geological challenges.
  • The project has been plagued by delays since March 2024, when two sinkholes emerged in Rockdale due to complex fault zones, halting work for over a year.
  • NSW Premier Chris Minns criticized the contractor's withdrawal, urging a return to engineering solutions while warning that alternative contractors may be engaged.
  • The motorway’s completion has been pushed to 2028, three years later than planned, with taxpayers already burdened by over $5.5 million in legal fees.
  • Transport for NSW maintains that CGU remains responsible for the project’s design and delivery, as officials assess options to restart the stalled construction.