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Wellington council's planned sludge minimisation plant faces increased costs
An artist's impression of the new sludge minimisation facility at Moa Point.
Photo:
Supplied / Wellington City Council
Wellington City Council's sludge minimisation plant, which is expected to be completed by next year, is facing increased costs.
On Friday morning several councillors confirmed to RNZ they had been made aware of a budget blow-out during a public-excluded session last week.
On Friday afternoon Wellington City Council said elected members had been given a preliminary briefing about the challenges faced with building the new Te Whare Wai Para Nuku sludge minimisation facility currently under construction at Moa Point, with several factors driving increased costs to complete the project.
The project is expected to be built to a $428 million budget.
Initially up to $400m was raised for its construction, with a levy introduced to ratepayers in August last year to fund the the facility without affecting council funding for other important infrastructure and community projects.
The levy will be collected for a period of 33 years commencing 1 July 2024.
A council spokesperson said while staff were still investigating the situation, several key themes that were driving increased costs to complete the project had emerged.
"These include a later practical completion date than anticipated, changes in design, identification of historical costs which weren't originally included, and re-assessment of risks with the pathway and process for commissioning the plant," the spokesperson said.
A more detailed report on cost and funding implications will be outlined to elected members in a briefing on Thursday 14 August.
The matter will also be considered at the council's long-term plan finance and performance committee on Wednesday 20 August.
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