This Sydney theatre was touted as a ‘world-class’ centre. Cost blowouts mean it will be scaled back

2 hours ago 1

The redevelopment of the Riverside Theatres in western Sydney will be scaled back after the project exceeded the $276.8 million budget, forcing councillors to agree to a redesign.

The transformation of the 37-year-old complex into a “world-class performing arts centre” was meant to begin by the end of 2025, but as costs soar the City of Parramatta has had to delay construction by a year.

An artist’s impression of the planned Riverside Theatres redevelopment, viewed from Church Street in Parramatta.

In a council meeting that exceeded the time limit of 11.30pm on Monday and forced councillors to reconvene the following day, acting chief executive George Bounassif confirmed tenders for the project had been rejected due to “material variance to budget, unresolved constructability/program risks, and the need for redesign and value engineering”.

The council will instead enter into an early contractor involvement stage to “undertake focused redesign” of the precinct so it can be delivered within the $276.8 million budget. One source confirmed the final design will be a “scaled-back” version of the current vision.

Construction was meant to begin by the end of 2025, with the new-look theatre to open in 2028. The theatre will now remain open until October 2026, with a City of Parramatta media release stating construction would commence “later in 2026”.

The plans announced in 2024 included a 1500-seat Broadway-style lyric theatre, a refurbished 700-seat Riverside Playhouse theatre, an all-new 325-seat black-box drama theatre, a 110-seat digital studio and cinema. At the time, it was priced at $188 million.

In July, the price ballooned to $276 million, with the council agreeing to try and fill a $93 million funding gap through a mix of philanthropy and use of its capital reserves.

The current Riverside Theatres precinct.

Three months later, the Herald revealed confidential documents from the state’s audit office had warned of an “extreme risk” the project would not have enough capital to deliver the final design.

Last month, this masthead confirmed tender applications returned to the council with a pricetag of $355 million – nearly double the original cost of the project. The council also applied for $50 million from the federal government’s Urban Precincts and Partnerships program in February, but Parramatta Lord Mayor Martin Zaiter, a Liberal, said the council was advised it was unsuccessful.

In a statement, Zaiter said the decision allows the council to work with the contractor to optimise the design before the construction stage to “deliver the best theatre experience within the approved budget”.

“We’re taking the necessary steps to bring our vision to life and deliver what our community wants – an iconic world-class theatre in the heart of our CBD,” he said.

“Council has a strong track record of delivering major infrastructure projects and this responsible approach aligns with NSW infrastructure procurement guidance and best practice for complex, high-value projects.”

The council dropped plans to upgrade the Epping Aquatic Centre when tenders for the project revealed the $26 million price tag had doubled. Minimum renewal works will take place instead at the centre, which has been closed since April 2024, to reopen it in 2027.

The Sydney Morning Herald has a bureau in the heart of Parramatta. Email [email protected] with news tips.