NBN has rejected claims of significant delays and massive budget blow-outs revealed in a controversial leaked internal progress report. “We will not be drawn on alleged internal documents,” a spokesperson for NBN said in a response to the report. “We report quarterly and our results are audited.”
According to the report, obtained by SMH, the NBN has “fallen two-thirds short of its benchmark construction timetable” with connection costs also exceeding budgets, according to the internal document dated 19 January.
The internal report states that 1,402,909 premises should have been approved as of 19 January, although only 662,665 have been reached. NBN has today stated that “as at 18 February 2016, nearly 1.8 million homes can now order a service and more than 800,000 homes are already connected and using the nbn network.”
It was revealed in the internal report that 59 per cent of delays — 38,537 premises — come from power approvals and construction caused by electricity companies. 30 per cent of delays have arisen from shortages in materials, and 11 per cent are from completion reviews.
“Construction completions currently sits at 29K against the corporate budget of 94K,” the report states. “Gap-to-target has increased from 49,183 to 65,268 at week ending February 12.”
“Construction completions gap can be attributed to 3 main issues: power, supply, and completions under review.”
“nbn reject claims that the company is at risk of not meeting its targets, nbn has met or exceeded every key target for six quarters in a row,” today’s statement reads. “The company’s management has proven repeatedly that it can effectively monitor risks and manage those risks.”
The internal report also showed a rise in the individual connection cost of the FTTN service. With a “target price” of $1114, this has risen by 23 per cent to $1366.
The overall cost of the NBN has risen from an intended a $29.5 billion, to above the cost Labor’s FTTP model with a proce tag of $44.9 billion that was described as “needlessly extravagant and unaffordable” by Malcolm Turnbull.
“Despite Design Commencements remaining above budget, all other significant milestones of FTTN continue to remain behind target,” the internal report stated.
NBN, however, says “the company is on track to meet or exceed its full year targets of 2.6 million homes Ready For Service, approximately one million homes using the network, and more than $300 million in revenue.”
“We’re now tracking over 10,000 new activations a week. By the end of this financial year we’re on track for nearly one in four homes to be able to order an nbn service and by June of 2018 this is set to grow to three in four.”
“This is an incredibly complex project unlike any infrastructure build anywhere in the world.”