Fairfax is reporting today that the cost of building the National Broadband Network (NBN) has doubled to a whopping $4,316 per premises:
A six-month review by NBN chief financial officer Stephen Rue found it has cost $4316 per premise to install FTTP broadband in existing premises and $2780 in greenfields areas.
The cost per premises has increased over the past 20 months despite a quicker roll-out…
In April 2013, under the Labor government, NBN Co estimated the cost per premises at between $2200 and $2500…
NBN Co’s new figures include additional inputs – such as internal labour costs and the cost of leasing Telstra’s network of ducts and manholes – which were not included in previous estimates.
A recent Productivity Commission report on public infrastructure criticised the NBN for its investment in infrastructure without the use of a cost-benefit analysis.
So, once again, taxpayers will be called upon to fund a project that sounded like a good idea, but due to the lack of due process in selection, design and implementation, will now cost them dearly.
As long as governments continue to choose infrastructure projects based on political objectives or their own romantic notions, rather than utilising objective selection processes and robust cost-benefit analysis, then taxpayers will continue to get reamed.
