INFRASTRUCTURE and capital works projects will be given a delayed multi-billion dollar funding boost, eight months late from the peak of the pandemic in the 2020-21 ACT Budget.

Chief Minister Andrew Barr handed down on Tuesday (February 9) a $914 million investment into infrastructure and capital works projects for 2021, which government expenditure extend to a further $4.3 billion until 2023-24 fiscal term.

The ACT government has outlined the building of the light rail to Woden and raising London Circuit, the Canberra Hospital Expansion Project, “growing and renewing” more public housing, the Big Canberra Battery renewable energy for houses, Monaro Highway upgrades, the construction of a Taylor high school and also the expansion of Margaret Hendry Primary school in the same suburb as its significant projects.

The new four-year program includes spending of $2.6 billion of allocated capital works and $1.7 billion of infrastructure investment provisions.

Capital works will include new projects in this current 2020-21 budget and from the recent August 2020 economic and fiscal update, works-in-progress projects commenced from previous years, and improvements to existing infrastructure which “extend the useful life or improve the delivery capacity” of existing physical assets, through the territory’s better infrastructure fund.

The other 40 per cent of infrastructure investment provisions set aside funding for significant capital works projects for which budgets or other details are yet to be settled, or which are “commercially sensitive”.

Provisioned funding will only allocated once conditions are met, generally as a result of the approval of business cases, provision of other information or following a conclusion of tender processes in the case of commercial sensitivities, the government says.

Master Builders ACT has welcomed the budget after its chief executive Michael Hopkins said: “Focusing on the delivery of shovel-ready projects while also progressing design and planning for major projects will boost the confidence of the local industry and provide the necessary pipeline of future work to ensure local companies can continue to employ local people.”

Over the longer-term, however, Mr Hopkins says forecasts about slowing population growth paint a concerning picture for the ACT economy.

“The budget shows population growth will drop to an expected record low rate of 0.25 per cent in 2020-21 and 2021-22, having a direct and negative impact on industries including the construction industry,” he said.