Plans for a $1.6 billion redevelopment the Perth Convention and Exhibition Centre (PCEC) have been shelved by the Western Australian government, who have instead decided to divert $1.5 billion into a new Building Hospitals Fund.
The current PCEC building, designed by Cox Architecture, dates from 2004. A concept proposal for the redevelopment, which planned to expand the building's event capacity and open it up to the Swan River, was lodged by the property's leaseholders, Wyllie Group and Brookfield Properties, in January last year.
At that time, Premier Roger Cook commented that the "proposal would deliver an iconic new precinct that opens up major tourism and hospitality opportunities for WA, helping to diversify our economy and create local jobs."
"Our city deserves better than a shed on the river," he said.
Now, the state government has said that "the significant investment decision cannot be justified at this time." They have reasoned that more than $500 million in road and rail infrastructure works would be needed before construction on the building redevelopment could commence, and that the total project cost would come in higher than the anticipated $1.6 billion, "with the state government likely to carry the entire cost on its balance sheet."
They also cited the "negative impact [that would result from] the disruption of [the PCEC's future] events" as a contributor to the decision. In a media statement, Cook commented, "We want to expand our major conference capacity, but it needs to occur in a way that delivers value for taxpayers and doesn't interrupt the impressive forward program of business events activity," he said.
The government has so far invested $35 million in design, engineering, geotechnical and business case works. According to their media communique, "The results of this work will be available to the government into the future, as it looks to work with both the leaseholders and the broader business events and tourism sectors on a new path forward."
Cook commented, "Our existing business events and tourism program is an important part of our government's strategy to diversify the economy and ensure it remains the strongest in the nation. This is an important focus for my government; however, I refuse to compromise on major projects that will deliver better health outcomes for Western Australians."
The $1.5 billion Building Hospitals Fund newly pledged by the WA government is in addition to $3.2 billion already committed under the state's existing health infrastructure program.
Development approval has been recently granted to two projects benefiting from this fund: a six-storey new building at Royal Perth Hospital, and a new hospital on a greenfield site, replacing the Peel Health Campus adjacent. The WA government has also newly purchased the St John of God Mount Lawley hospital, with future plans to expand the hospital and aged care facilities.
Construction is also currently underway on the $1.8 billion Women and Babies Hospital, designed by Hassell, and the $471.5 million Bunbury Health Campus redevelopment, managed by Multiplex and Perkins.
