Train Services

In reply to the Hon. A. KOUTSANTONIS (West Torrens) (24 November 2020). (Estimates Committee A)

The Hon. C.L. WINGARD (Gibson—Minister for Infrastructure and Transport, Minister for Recreation, Sport and Racing): I have been advised:

The contract has been uploaded onto Tenders SA, based on an eight-year term. The total contract is 12 years, which includes an optional four-year extension. The total contract value is $2.14 billion including GST. Note that the total contract sum includes operational costs as well as major periodic maintenance. The major periodic maintenance fluctuates year on year based on the asset life cycle. The impact of compounding indexation on the contract sum is significant and represents $274.7 million of the $1.94 billion (excluding GST) over the 12-year term. Accordingly, it is weighted greatest to the latter years of the contract. The escalation over the last four years can be explained by indexation as the comparison that was undertaken was based on nominal amounts as opposed to real values (GST inclusive).