A recent federal audit has highlighted significant shortcomings in the management of the Snowy 2.0 pumped hydroelectric project, raising concerns over project governance, cost control, and environmental impact. The 11-month investigation by the Auditor-General concluded that Snowy Hydro’s oversight of the initiative has been only "partly effective," identifying numerous deficiencies that have undermined value for money.
The audit, spanning 98 pages, detailed issues including inadequate contractor accountability, poor access to reliable project data, the absence of an agreed baseline schedule, ineffective incentive frameworks under the new contract, and the lack of a realistic cost forecasting system. Risk management arrangements remain incomplete, further complicating oversight efforts. These findings point to longstanding challenges since the project’s inception around nine years ago.
Snowy Hydro has publicly agreed with four of the five audit recommendations—covering enhanced project management, improved performance metrics, strengthened risk management, and revised procedures for contractor payments. However, the company only partially accepted the proposal to introduce regular public reporting on the project’s schedule, signaling a reluctance to increase transparency.
The audit notes that Snowy 2.0 is currently behind schedule and undergoing a cost reassessment expected to reveal further budget increases. This comes despite the project’s market valuation of approximately A$7.8 billion, equating to nearly A$1,500 per Australian citizen. The latest review contrasts sharply with the Auditor-General’s 2022 report, which had concluded that governance arrangements were appropriate and made no recommendations for improvement. The earlier audit has since been criticized for failing to detect governance failings and looming cost overruns.
Concerns are also mounting over the reported progress claims. Although officials cite approximately 73% completion, physical indicators suggest otherwise. Only about two-thirds of the project's tunnel excavations are finished, the power station caverns remain incomplete, and electromechanical installations have yet to begin. Analysts warn that remaining expenses are likely to surpass anticipated benefits, and there is little assurance that forthcoming budget reviews will provide more accurate forecasts.
Beyond fiscal and administrative issues, the project has raised environmental alarms. Large-scale construction activities have affected roughly 35 kilometers of Kosciuszko National Park, leading to significant landscape disturbance including earthworks, spoil accumulation, new roads and transmission lines, introduction of invasive species, altered water tables, reduced stream flows, and potential pest fish migration.
Industry experts and environmental advocates have repeatedly urged government intervention to subject Snowy 2.0 to rigorous, independent scrutiny. They stress the need for unbiased assessments to determine viable alternatives and mitigate ongoing financial, social, and ecological risks. Without decisive action, the project risks continuing along a troubled trajectory that threatens both public funds and the sensitive environment of Kosciuszko National Park.