Thursday, July 7, 2022

Waimea Community Dam costs will not affect Tasman Rates this financial year

Tasman's Annual Plan not affected by Waimea Dam cost and delay announcement

Waimea Community Dam photo supplied

Despite an additional 5 percent increase in costs and further delays in the completion of the Waimea Community Dam, Tasman District Council says its Annual Plan budget will not be affected as a result of the announcement.  

The latest forecast was made by Waimea Water Limited (WWL) chief executive Mike Scott in a presentation to elected members at the Council’s Operations Committee meeting on June 23.  

They were informed that the expected cost was now $195 million - a $10 million increase from the $185 million that was forecast in February 2022. 

Waimea Water Limited also advised that the dam will not be operational for the 2022/2023 summer, seven months later than expected earlier this year, and 16 months later than the original plan. 

Waimea Community Dam  in finished state photo supplied

Waimea Community Dam  in finished state photo supplied see to have YOUR say
on the Three Waters reform proposal. All this will be taken out
 of our hands. See article Pigeon Post News 'Three Waters reforms
continues' June 25

The key reasons given were a delay in the main contractor’s work programme and additional mechanical and river diversion costs. The $10 million increase excludes some residual risks such as any future extreme weather events or contractual disputes. 

The subsequent mechanical and commissioning work is also further delayed until early February 2024, two years behind the original plan. 

However, the project delay and the estimated cost increase do not impact the adoption of the Annual Plan which was carried out at a Full Council meeting on the 23 July. 

 Acting Chief Executive Leonie Rae said the latest news about the dam is “incredibly disappointing”. 

However, the additional costs estimates and funding have not yet been determined so it would be premature to try and include in the Annual Plan budget already set.  

Instead, the true impact will be considered in the 2023/2024 annual plan. 

“It’s important that the Annual Plan budget is adopted so council has the funds to operate from 1 July.” 

Tasman Mayor Tim King said he accepted the reasons for the delay and cost increases were largely due to the current global environment of disruption to supply chains and Covid- related workflow.

However, the ongoing issues with the project were extremely disappointing.

Staff working on the environment surrounding the Waimea Dam

Pigeon Post News 7 July 2022

Put your dancing shoes and book for: 'Winter Tango In Hanmer'. Support our sponsors

No comments:

Post a Comment

Looming changes forecast for Tasman District Council's 10 Year Plan

  Changes looming for Tasman District Council's 10 Year Plan   5 May, 2024 Tasman District Council’s Chief Financial Officer Mike Drum...