By Mike Foley

Copyright theage

The cost of materials including steel and concrete for major infrastructure projects has spiked since the COVID pandemic, which coincided with a global energy crunch spurred by Russia’s invasion of Ukraine.

Adding further costs to Snowy 2.0, tunnel workers contracted to the project secured in September wage rises of 26.5 per cent over four years, raising their annual salary to more than $300,000.

The physical challenges of building Snowy 2.0, which is located under National Park in a sensitive alpine environment, is typified by the fate of Florence the tunnel boring machine.

She spent most of 2023 stuck in soft ground less than 100 metres into her 15 kilometre task. She was freed and on May 16 became wedged in hard rock while excavating a curve in the tunnel, and it took a team of contractors with high-pressure water jets seven weeks to blast her free.