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Friday 5 March 2021
Dam cost overtops - again
Half-way there: Construction of the Waimea Dam is around 50 per cent complete but costs continue to escalate. Photo: WWL/Supplied. JO RICHARDS
Last week’s announcement that the final cost of Waimea Dam could reach $164m was followed by what is now a familiar response from Tasman District Council (TDC) – an attempt to rationalise a situation which is in danger of spiralling out of control. The latest budget blow-out has prompted long-time opponent of the dam, councillor Dean McNamara, to call for an investigation into the project. But his proposal has received a mixed reception from colleagues. Shortly after Waimea Water Limited (WWL) CEO Mike Scott delivered his report to councillors last Thursday, the mayor sought to side-step any council culpability for the ballooning costs. “The council relied on the best advice available to scope and price the dam prior to giving the ‘go-ahead’. Despite the significant time and investment it is now clear the risks were under-estimated and this, alongside the impact of Covid-19, has resulted in the situation that we find ourselves in today.” A further endorsement of the project followed. “Despite this, I still firmly believe the dam is essential and critical infrastructure
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for this district,” said Tim, adding, “There are lessons for other regions in this project as they face their own similar challenges.” He didn’t, however, specify the nature of those lessons. In any case, whether such learnings are acted upon is open to question. Critics argue that TDC does not appear to have taken on board lessons learned from an earlier local authority debacle, which resulted in Kaipara District Council being damned by the Office of the Auditor General over its management of a wastewater scheme. The OAG’s 2013 report refers to KDC’s project as “a woeful saga” in which council failed to meet accountability obligations, “relied too heavily on its professional advisers and had a practice of receiving briefings and effectively making decisions in informal workshops”, and was simply “out of its depth”. Long-time critic of the dam project, Golden Bay resident Tony Lawton is similarly scathing of Tasman District Council’s conduct. “We believe TDC did not follow Auditor General guidelines, and if they had done so, the dam would not have gone ahead under the current funding model. That mistake will cost TDC
ratepayers many millions of dollars over the next 20-plus years.” Final cost The mayor’s admission that risks were underestimated marks a significant change of stance from October 2017, when TDC’s consultation document stated that the dam would be built for $75.9m, quoting a 95 per cent confidence level – the so-called “P95” statistic that proponents of the dam used to shut down debate over financial uncertainties. For the dam sceptics, who for years warned of sky-high costs – and were given short shrift by the dam’s cheerleaders prior to the project being greenlit – the current blow-out provides a classic “we told you so” moment. “In 2017 we used the best available international research – the Oxford Study of Large Dams – to estimate the dam is expected to cost at least $160m,” says Tony who now calculates the cost of completion will exceed $200m. Mike Scott appears reasonably confident that the dam will eventually cost between $148164m. “With the majority of design elements completed and the dam project now... Continued on page 2 Ray White is proud to support
QUEST OUT WEST ROGAINE Kaihoka, Golden Bay 27th March 2021
Computing Solutions
ALISTAIR HUGHES
Tuesday 2 March was the last day for submissions on the Government’s new proposed Water Services Bill. In 2016, contamination of a Havelock North groundwater bore caused a serious outbreak of gastric illness in over 5000 people, with up to four associated deaths. A government inquiry was immediately held, which saw the Department of Health make urgent recommendations on drinking water supplies as covered by the existing Health Act. However, in the face of the severity of the outbreak, the Government decided that more fundamental and farreaching changes needed to be made. This prompted the creation of a separate water regulation agency, Taumata Aroawai, and a proposed new Water Services Bill, with the intention of reforming the national drinking water regulatory system. In the next step the bill will go before a Health Select Committee, prior to a second reading in parliament. Although the intent of the bill is admirable, many have deep concerns about the practicality of its proposals and its apparent lack of promised consultation. Mik Symmons has lived in Golden Bay for almost 40 years and, like many others here, is part of a small rural water supply scheme. “Officials responsible have been asked to ensure that solutions work for rural suppliers, and are cost effective. But what I have seen proposed in the document called ‘Acceptable Solutions for Rural Agricultural Drinking Water Suppliers’ is neither workable nor cost effective,” says Mik. He explains that, under the proposed legislation, if anyone supplies more than one house they are deemed to be a “water supplier”, and there is a level of compliance and cost which goes with that. “You will have to register your scheme with the water regulator, then do regular testing both at the source, and at the point of delivery, and so that’s at least 24 tests a year from my reading of it.” Mik says that “grace and favour ” schemes – where a resident might supply a neighbour – will now become formal water supply schemes. “A lot of these small schemes probably aren’t even aware that they are now going to be classified as suppliers. And there doesn’t seem to be an educational component; it’s just very punitive. There are fines if you don’t register and if you don’t comply.” Continued on page 2
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Inside: Ambulance station Marine art Fibre broadband More Waimea Dam THE GB WEEKLY, FRIDAY 5 MARCH 2021
Water Services Bill
021 035 6233 www.xplusy.co.nz ISSN (PRINT) 2538-0923 ISSN (ONLINE) 2538-0931
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