ONE of the construction partners for the $37.4 billion national broadband network (NBN) is significantly behind with its cable rollout in Western Australia, South Australia and the Northern Territory, a parliamentary hearing has heard.
NBN Co boss Mike Quigley told a Senate estimates hearing on Tuesday that it has lowered the forecast for the number of premises passed in its rollout to June 2013 due to problems with construction partner Syntheo.
Syntheo is a joint-venture between Lend Lease and Service Stream.
It is the contractor to rollout the high speed broadband fibre optic cable in Western Australia, Northern Territory and South Australia.
"We are working closely with Syntheo to try to recover the original forecast," Mr Quigley said in Canberra on Tuesday.
Opposition backbencher Simon Birmingham asked Mr Quigley if there were any fibre connections in the rollout areas under Syntheo's control in Western Australia, South Australia and the NT.
"No, these are under all contract with Syntheo," Mr Quigley replied.
NBN Co had lowered its forecast of nearly 300,000 existing premises to be passed by optic fibre cable this June to 286,000.
There were 52,014 premises passed at the end of 2012.
Mr Quigley said 17 per cent of the June 2013 target, 48,620, was under the control of Syntheo.
The government owned enterprise could apply penalties to any contractor that failed to meet its target, Mr Quigley said.
Syntheo has contracts with NBN Co worth up to $315 million due for renewal this year, with further upgrades of up to an extra $510 million if the agreements were extended for another two years.
Those contracts were under renegotiation, Mr Quigley said.
Communication minister Stephen Conroy said the fibre rollout remained on target.
NBN Co is charged to rollout optic fibre cable to 93 per cent of homes, businesses and schools by June 2021, with the rest to be provided by fixed wireless and satellite technologies.
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