Mar.6 (GMM) The Albert Park pitlane building will be demolished immediately after this weekend’s Australian Grand Prix – and its replacement has become significantly more expensive after asbestos was discovered at the site.
A report from Victoria’s auditor-general has revealed the total cost of removing the asbestos and constructing a new facility has blown out to up to $395 million, some $115 million more than the original budget.
The existing structure, built in 1995, no longer meets the standards required by Formula 1 and the FIA.
Victorian Treasurer Jaclyn Symes said the government had little choice but to pay. “Unfortunately, there’s not much you can do apart from deal with asbestos when you find it to ensure that you’re providing a safe workplace and a safe building going forward,” she told ABC Melbourne Radio.
For the 2027 race, new garages will be constructed and a temporary Paddock Club facility with capacity for 2,500 guests will be provided. The full new building – featuring hospitality space for 5,000 people and 14 garages – is due to be completed in time for the 2028 grand prix.
The auditor-general’s report warned the blowout may force some scaling back of the project, however, potentially breaching Melbourne’s contract with Formula 1 or falling short of facilities previously announced by the government.
Despite ticket sales nearly tripling over the past decade, the Australian Grand Prix continues to run at a loss – costing the state government more than $102 million to fund in 2024 alone.