Major Projects Performance Reporting: 2024

Body
We plan to examine whether the information that departments publicly provide can be used to assess the impact of changes to major projects. We also plan to assess the factors driving significant project variations to better understand the risks to effective project delivery.

3. Advice to the government

Public sector agencies did not always work together to provide comprehensive and timely advice to the government to inform its decision to host the Games.

While agencies did highlight risks, DJSIR overstated the benefits of hosting and did not provide reliable cost estimates. This meant that from the start, the government had unrealistic expectations of the cost and effort it would take to deliver the Games within 4 years.

2. The cost of the Games

In March 2022 the government approved a gross cost budget of $2.7 billion for the Games with an estimated net cost of $1.6 billion.

When the government announced that Victoria would withdraw from hosting the Games in July 2023, it stated that the cost of hosting was certain to exceed $6 billion.

But both of these cost estimates were unreliable – the first estimate was understated and the final one was overstated.

1. Context

The Commonwealth Games is an international multi-sport event involving athletes from Commonwealth nations and territories. It was first run in 1930 and has taken place every 4 years since 1950. Victoria was selected as the host for 2026.