Snowy Hydro has withheld a comprehensive cost review of its Snowy Hydro 2.0 expansion project for more than three months, drawing scrutiny amid significant budget concerns and political pressure. The reassessment, prepared by contractor Webuild and delivered in June, provides a detailed line-by-line update of the project’s expected costs, but has not yet been submitted formally to the government.

Finance Minister Katy Gallagher, one of Snowy Hydro’s two shareholding ministers, had indicated in June that the final cost report would be presented to the government by the end of July. However, despite statements from Snowy Hydro that independent construction cost experts have supported the reassessment, the precise total cost of the project remains undisclosed.

Since the report’s delivery to Snowy Hydro management, Parliament has sat for six weeks without the information being made public. The delay has heightened tensions for the Albanese government, particularly Energy Minister Chris Bowen, as calls for transparency intensify amid growing concerns over the project’s escalating budget.

Earlier this year, the Australian National Audit Office (ANAO) issued a critical report on Snowy Hydro’s management of its main construction contracts, highlighting governance and oversight weaknesses. The same month, One Nation leader Pauline Hanson called for the cancellation of Snowy Hydro 2.0, describing it as a “black hole of debt” for taxpayers.

Snowy Hydro’s Chief Executive Dennis Barnes confirmed that the revised budget will be announced in October. In a recent television interview, Barnes stated that since last year it had become clear the project would not be completed within the initial $12 billion budget. He emphasized the review aims to present the most accurate figure possible, with preliminary estimates ranging broadly between $2 billion and $42 billion.

Earlier reporting suggested the total cost, including transmission infrastructure, could reach $42 billion, a figure two energy economists described as warranting a royal commission into one of Australia’s most significant infrastructure failures. The ANAO report showed that by the end of March, Snowy Hydro had already spent $11.1 billion of the $12 billion revised budget.

A parliamentary committee, chaired by Labor MP Josh Burns, has also been established to examine the project with a focus on cost forecasting, governance, management, and contractor oversight.

Opposition energy spokesman Dan Tehan called on the government to release the Webuild report immediately, stressing the importance of transparency given the budget overruns. Chris Bowen has committed to making the report public once it is received from Snowy Hydro.

Compounding the project’s challenges, operational issues continue to affect progress. A key tunnel boring machine, known as Florence, has been stalled for several months due to repairs on cracking in its cutterhead. Since beginning work in March 2022, Florence has completed just 2.6 kilometers of a planned 25-kilometer tunnel, with delays attributed to difficult ground conditions and heavy rainfall.