Failed stadium bidder understood to get millions reimbursed

Construction giant WeBuild, which was behind an unsuccessful bid to build Hobart's stadium at Macquarie Point, is set to have its costs reimbursed by the Tasmanian government.

Belgian-Australian construction firm BESIX Watpac was announced as the preferred tenderer for the stadium build last week.

It beat out a consortium of Italian construction firm WeBuild and the Chinese government-owned China Construction Oceania.

The ABC understands the amount set to be reimbursed to the unsuccessful tenderer is likely to be in the millions of dollars.

The costs are set to be reimbursed once a final contract is signed and will come from the project's budget.

A spokesperson for the Macquarie Point Development Corporation declined to comment on the amount that would be reimbursed.

"This is a recognised feature of major competitive procurement processes and forms part of the arrangements for this process,"

they said.

Governments around Australia often reimburse the bids for major projects which involve more work. However, it is less common in Tasmania where there are fewer major projects.

The Western Australian government reimburses $750,000 for bids on projects with a value of $1 billion.

In New South Wales, half of the estimated bid cost is paid on projects worth $100 million or more.

Victoria also offers partial bid cost reimbursement for major projects, with no fixed cap.

Reimbursement offered to 'induce' bidder, claims independent MP

A document for those submitting an expression of interest for the Macquarie Point tender process, released in January this year, set the maximum reimbursement at $250,000.

Independent MP Kristie Johnston questioned why a higher payment was now being mooted.

"What I'm concerned about is that the government had provided an ex gratia payment far and beyond the $250,000 identified in the tender documents to rebuild as some kind of inducement to get them to enter into this process."

Ms Johnston raised concerns earlier this year that the bid led by WeBuild had not been compliant with the tender request, but had been shortlisted regardless to give the appearance of a competitive process.

Concerns were also raised about criminal charges WeBuild is facing interstate, relating to safety issues on the Snowy Hydro project.

WeBuild is fighting the charges.

"It's important that Tasmanians understand exactly what the government are coughing up when it comes to the procurement process, but, beyond that, the actual genuine cost of the stadium," Ms Johnston said.

Parliament to debate releasing stadium costs once again

The 23,000-seat, roofed stadium was costed at $1.13 billion last year, but that is expected to rise due to increasing construction costs worldwide.

Premier Jeremy Rockliff has committed to releasing the final tender cost to the public before a contract with BESIX Watpac is signed, likely in December.

The upper house is today set to debate another motion from independent MLC Meg Webb, ordering the government to table its new cost estimate by November.

"It will be extremely bad faith for the government to release publicly the final revised costs, and any change that may have on the state's contribution, a nano-second before they sign on the dotted line," Ms Webb said.

"The Tasmanian public has had this before, where they've been signed up to things before there's been appropriate public and parliamentary scrutiny."

Ms Johnston will also table a motion for debate in the lower house ordering the government to provide BESIX Watpac's construction estimate.

The state government has refused earlier calls to release the cost, saying it would risk the active procurement process.