Taxpayers could be slugged with a hefty $500million bill if Sydney's controversial light rail project fails.
As work on the contentious light rail continues, New South Wales taxpayers may have to front the amount if the consortium behind the project goes under.
To ensure the light rail is completed sooner, the government requested an extra $500million loan, provided by private banks, to the ALTRAC Light Rail Partnership.
The NSW State Government on Friday admitted it is guarantor for the hefty loan.
Taxpayers could be slugged with a hefty $500 million bill if the controversial Sydney light rail project fails
Transport Minister Andrew Constance initially refused to answer the question posed by Labor about the funds but said the loan 'will be paid back'.
'The NSW Government is not loaning the funds, but is providing a guarantee on the drawn down portion of the loan,' he said in the state's budget hearing.