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Jacob Shteyman

Metro line back on track as costs trainwreck resolved

Chris Minns and Jo Haylen have confirmed the final stage of the City and Southwest Metro project. (Bianca De Marchi/AAP PHOTOS)

A troubled project to convert a Sydney rail line to driverless metro has been given the go-ahead after months of speculation it would be canned.

The conversion of the Bankstown line, along with the Metro West project linking Westmead to the CBD, had been at risk of cancellation after mammoth cost overruns threatened its viability.

But the final stage of the City and Southwest Metro project has been spared the axe, after NSW Transport Minister Jo Haylen and Premier Chris Minns released an interim review on Tuesday.

Speaking in front of a gleaming new metro train, the pair announced an extra $1.1 billion in funding - diverted from other areas of the transport budget - to ensure the 13.5km line opens between July and October 2025.

The process won't be without difficulty, as commuters must endure 12 months of replacement buses while the track is closed for construction.

Ms Haylen did not sugarcoat the disruption southwest Sydney residents will face as a result.

She promised the line would not be closed until the metro's Chatswood to Sydenham leg was up and running between July and October 2024, with testing of trains under way.

About 100 extra buses will run replacement routes, including express services, but long delays to travel times are inevitable.

Commuters along the the Epping to Chatswood rail link were also forced to use replacement buses when the line was upgraded in 2018 as part of Metro Northwest.

When opened, the $21b City and Southwest project will extend the Chatswood to Tallawong line to create a continuous 66km ribbon of railway.

Business Western Sydney director David Borger welcomed the announcement, calling for more homes, jobs and amenities to be provided along the line.

As well as providing shorter travel times and higher frequency, shifting traffic from the existing heavy rail line onto the standalone metro promises to clear a bottleneck in the congested city circle and significantly improve reliability across the system.

"This is great news not only for the communities of southwest Sydney but for all passengers across our train network," Ms Haylen said.

But Tuesday's realignment was dubbed a stunt by the coalition, which accused the government of taking credit for rescuing the project from itself.

Opposition Leader Mark Speakman joined western Sydney mayors in calling for Mr Minns to back the $25b Metro West, urging the government to "come clean" on its plans to delay it.

"There is still a dark cloud hanging over the future of Sydney Metro West with questions yet to be answered," he said.

The review warned shifting funds to the Bankstown conversion from Metro West would be "highly likely to impact the target 2030 opening date" and further increase costs.

Constrained by a gaping budget black hole, Mr Minns did not rule out introducing value capture - in which businesses that will benefit from the line contribute to its cost.

The interim report also recommended the government consider a potential eastern extension to Metro West beyond its planned CBD terminus.

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