The Elizabeth Quay project on the Perth foreshore is nearing the end of being a construction zone, the inlet has been flooded as the excavation has finished with some minor construction continuing. Whilst Elizabeth Quay will be officially opened on friday, construction will continue for a number of years yet. When completed, this will be a major draw card for the city of Perth in terms of social and economic progress connecting the Swan River to the city.
Chevron, a major tenant has requested a two year delay to the tower to be constructed on the corner of Barrack Street and the Esplanade as the Gorgon and Wheatstone gas projects are behind time and budget. Chevron recently laid off 1500 workers on the construction phase of the project as the Western Australian economy stagnates, the state government has recently instigated a hiring freeze as the state unemployment rate rises to the highest levels in 13 years.
The major construction projects in the city have generated jobs but comes at a high cost to the state's finances. With the state budget in disarray after the collapse of iron ore royalties and GST distributions, the construction phases look to wind down as the economic downturn is expected to bite even harder. The state government will pretty much have empty coffers with no new major construction projects planned due to state debt climbing past the $30 billion level unless alternate funding is procured. I'm also concerned major anchor tenants at Elizabeth Quay may further postpone construction due to economic conditions that are unraveling right now.
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