WA's deputy premier has defended spending millions preparing land in East Perth for a prime waterfront development by proponents Andrew Forrest and Kerry Stokes.

The state budget has detailed $9.2 million for works at the East Perth Power Station site, on top of some $60 million already committed.

Deputy Premier Roger Cook said the spend was necessary.

"East Perth Power Station has been a dilapidated and run down site," he said.

"We need to act decisively to activate and really bring that whole precinct to life.

"It has the potential to be a magnificent opportunity for us to really invigorate that particular park.

"So we're working closely with the proponents to make all those things happen.

"It's a complex project, it involves a lot of power infrastructure, there's a lot of soil contamination, it involves a lot of gas infrastructure.

"It's going to be a world-class statement for Western Australia."

The budget papers said the funds were needed to address "risks associated with site de-constraining works" and the parties were "negotiating performance warranties with respect to delays" in completing the works, which were led by the state.

In 2020, Andrew Forrest's Minderoo Group (which  later changed its name to Tattarang) was named as a preferred proponent, along with Kerry Stokes's Australian Capital Equity.

At the time, Minderoo predicted an investment of $218 million to transform the old power station into a residential, commercial, recreational and tourism site.

The state had valued the site at just $1, due to the issues associated with it.

Mr Cook said he was glad something was finally happening.

"We continue to work with the investors and the proponents.

"And don't forget as we continue to step through this project we are confronting more issues that need to be resolved.

"We want to make it a success, I think all West Australians want to see East Perth Power Station be replaced with a really iconic facility which everyone can be proud of."