The Western Australian government has announced it will not proceed with the $1.6 billion redevelopment of the Perth Convention and Exhibition Centre (PCEC), redirecting funds towards the newly created $1.5 billion Building Hospitals Fund.
Premier Roger Cook informed the leaseholders of the decision on Wednesday, citing the significant costs and potential disruption as key factors influencing the government’s choice.
The proposed redevelopment would have required an additional $500 million investment in rail and road infrastructure to accommodate the project, impacting critical transport routes.
Moreover, the government highlighted concerns over disruption to the existing business events program at PCEC, which already hosts major conventions and plays a crucial role in the state’s tourism and hospitality sectors.
“Our existing business events and tourism program is an important part of our government’s strategy to diversify the economy and ensure it remains the strongest in the nation,” Premier Cook said.
“This is an important focus for my government; however, I refuse to compromise on major projects that will deliver better health outcomes for Western Australians.”
The project was deemed financially unviable at this stage, with the entire cost likely to fall to the state government’s balance sheet.
Despite having contributed $35 million so far towards design, engineering, geotechnical assessments, and business case work, which will remain available for future planning, the government decided that the redevelopment could not be justified, given other priorities.
Premier Cook further emphasised the importance of balancing infrastructure development, stating: “We want to expand our major conference capacity, but it needs to occur in a way that delivers value for taxpayers and doesn’t interrupt the impressive forward program of business events activity.”
He thanked the leaseholders for their commitment to both the current PCEC facility and its future potential, expressing optimism about finding new pathways forward.
In replacing the convention centre redevelopment, the WA government unveiled the $1.5 billion Building Hospitals Fund, which supplements the existing $3.2 billion health infrastructure commitment.
Key projects funded include new hospital developments at Mount Lawley, Royal Perth Hospital, and Peel Health Campus.
Deputy Premier Rita Saffioti underscored the government’s fiscal responsibility and strategic prioritisation of health infrastructure investment.
“Over the last eight and a half years, our government has delivered the strong financial management necessary to keep our economy strong,” she said.
“Sometimes, this involves difficult decisions, but we make no apology for prioritising our hospital building program and delivering the infrastructure and services our community needs.”
The Building Hospitals Fund, now part of a $4.7 billion health infrastructure program — the largest hospital building program in Western Australian history — also supports ongoing major projects, including the $1.8 billion Women and Babies Hospital and the $471.5 million Bunbury Health Campus redevelopment.
Saffioti added: “The announcements we’ve made today means we will now be investing $4.7 billion into health infrastructure over the next four years – representing the largest hospital building program in the State’s history.”
This decision marks a significant shift in Western Australia’s infrastructure priorities, balancing public health needs with economic development goals and reflecting prudent financial stewardship in a challenging investment climate.
The government intends to continue collaborating with PCEC leaseholders and industry stakeholders to explore future redevelopment possibilities that align with broader economic and community interests.
