The Western Australian government has officially abandoned plans for a massive $1.6 billion redevelopment of the Perth Convention and Exhibition Centre (PCEC), choosing instead to redirect $1.5 billion toward a newly established Building Hospitals Fund. The decision marks a significant shift in the state's infrastructure priorities, moving away from tourism and convention facilities to focus on healthcare improvements.
The existing PCEC building, which was designed by Cox Architecture and constructed in 2004, was set to undergo a major transformation under the shelved proposal. The redevelopment concept, submitted by the property's leaseholders Wyllie Group and Brookfield Properties in January of last year, aimed to significantly expand the building's event capacity and create better access to the Swan River. The ambitious plan would have added 4,500 square meters to the current 16,500-square-meter facility to accommodate larger events and conferences.
When the proposal was first announced, Premier Roger Cook expressed strong support for the project, stating that it "would deliver an iconic new precinct that opens up major tourism and hospitality opportunities for WA, helping to diversify our economy and create local jobs." Cook was particularly critical of the current facility's design, saying, "Our city deserves better than a shed on the river."
However, the government's position has dramatically changed due to escalating costs and logistical challenges. Officials now say the "significant investment decision cannot be justified at this time." The state discovered that more than $500 million in additional road and rail infrastructure improvements would be necessary before any construction on the building redevelopment could begin. Furthermore, the total project cost was projected to exceed the original $1.6 billion estimate, with the state government likely bearing the entire financial burden.
Another major concern cited by officials was the negative impact that would result from disrupting the PCEC's future events during construction. The facility currently hosts numerous business events and conferences that contribute to the local economy, and extended closure or limited capacity during redevelopment would harm this revenue stream.
In explaining the reversal, Premier Cook stated, "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." Despite the cancellation, the government has already invested $35 million in design, engineering, geotechnical studies, and business case development for the project.
According to government officials, the research and planning work completed so far will not go to waste. "The results of this work will be available to the government into the future, as it looks to work with both the leaseholders and the broader business events and tourism sectors on a new path forward," the government stated in a media release.
The newly announced $1.5 billion Building Hospitals Fund represents a major commitment to healthcare infrastructure and comes in addition to the $3.2 billion already allocated under the state's existing health infrastructure program. Premier Cook emphasized the government's priorities, saying, "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. 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."
Several healthcare projects have already received development approval through this new fund. These include a six-story addition to Royal Perth Hospital and a completely new hospital on a greenfield site that will replace the adjacent Peel Health Campus. Additionally, the WA government has recently purchased St John of God Mount Lawley hospital, with future plans to expand both the hospital and its aged care facilities.
The state is already in the midst of several major healthcare construction projects. Work is currently underway on the $1.8 billion Women and Babies Hospital, designed by Architectus, as well as the $471.5 million Bunbury Health Campus redevelopment, which is being managed by Multiplex and Perkins. These projects demonstrate the government's sustained commitment to improving healthcare infrastructure across Western Australia, even at the expense of other major development initiatives like the convention center expansion.
