South Australia is bucking a nationwide investment slump with a new report showing the total value of capital investment projects in the State has risen to $42.3 billion – an increase of 16 per cent on the quarter and 23 per cent over the last 12 months.
The Deloitte Access Economics Investment Monitor quarterly report, released today, records major capital investment projects from the time first intentions are publicly announced through to the completion of construction.
Treasurer Tom Koutsantonis said South Australia was one of only three mainland states to experience an increase in the value of projects for the June quarter. It follows an 11 per cent rise recorded in the March quarter.
“South Australia is bucking the trend and withstanding a nation-wide investment slump as a result of declining commodity prices,” Mr Koutsantonis said.
“The report found the value of planned projects (‘under consideration’ or ‘possible’) in South Australia rose by $6.5 billion – driven largely by ten projects that make up parts of the North- South Corridor.
“This is important as it indicates there’s a stream of projects in the pipeline that will create construction jobs for South Australians.
“The report follows last month’s State Budget which included a $10.8 billion capital investment program over the next four years to support 4700 jobs per annum.”
Three new private sector projects were listed in the June quarter report:
- Colonnades Shopping Centre redevelopment in Noarlunga ($47 million, ‘under
- Health Innovation Building – UniSA ($230 million, ‘committed’)
- Holiday Inn Express – 245 room hotel on Hindley Street ( ‘under consideration’)
Investment and Trade Minister Martin Hamilton-Smith said the State Government was playing an active role building key social and economic infrastructure, and leveraging billions of dollars in private investment, through major projects including:
- New Royal Adelaide Hospital ($1.8 billion)
- Lyell McEwin Hospital Stage C redevelopment ($175 million)
- O-Bahn extension ($160 million)
- Tonsley redevelopment ($1 billion)
- Upgrade of the Port Pirie smelter ($514 million)
According to the South Australian Developments Directory, last updated in December 2014, there are more than $94.6 billion worth of major projects underway or in the pipeline in South Australia. The Directory includes projects with a threshold value
above $5 million, compared to the Investment Monitor which includes discrete projects exceeding $20 million.
Source: News Release, Government of South Australia, 30 July, 2015