Wellington City Councillors approve extra $83m in funding for sludge plant completion
Photo:
Supplied / Wellington City Council
Wellington City Councillors have voted to approve an extra $83 million for the completion of its sludge minimisation facility.
$428m had been budgeted for the facility which was now expected to blow out around 20 percent - up to $511m.
The facility - which is around 65 percent complete, and expected to complete construction next year - would have had to cease construction if the additional budget was not approved.
On Thursday, chief infrastructure officer Jenny Chetwynd said $511m was a conservative figure and the council had taken on considerable risk with the project, which was now coming to fruition.
She said, between March and June this year, financial reporting began to indicate that the previous budget may not get them to the end of the project. Council was first alerted of this in June and given a further heads up in August.
Chetwynd said the complexity of the site - coupled with incomplete design at the start of the project, when the contract was signed - along with the risk the council had taken on and the complexity of the commissioning process were all "banging in together" and "manifesting in the increased costs".
Delays and changes in design had also extended the timeframes, and added more cost into the process.
The primary areas of cost changes were those that weren't initially factored in, design changes and delays, and a larger budget needed for commissioning.
The commissioning budget alone had expanded from $2.5m to $20m.
More to come...
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