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Friday 4 March 2022
Dam’s reservoir of debt
Waimea Dam construction costs continue to increase, due largely due to problems with the spillway and plunge pool. Photo: Supplied. JO RICHARDS
Tasman District Council’s financially challenged and controversial Waimea Dam project has been hit with a further multimillion-dollar cost increase. The $20m blowout, which adds another sizeable top-up to the council’s reservoir of debt, was announced last Thursday by Waimea Water Limited (WWL), the council-controlled organisation responsible for constructing the dam. The latest cost estimate for completion of the structure now sits at $185m. It’s more bad news for ratepayers, who are likely to bear the consequence of the overrun, plus any further escalation – which has not been ruled out by WWL CEO Mike Scott: “This current cost estimate excludes some residual risks that will be evaluated before the end of the financial year on 30 June 2022.” A lot of the extra cash is being poured
into the spillway and plunge pool as a result of unforeseen geological problems. “The geology of the plunge pool and top of the spillway continue to be a risk for the project, but these will be resolved over the coming months,” said Mr Scott, before acknowledging additional pressures caused by inflation, supply issues, and Covid-related disruption. These have conspired to exacerbate onsite problems. “Global demand and inflation of mechanical materials and components have contributed to the cost increase, as is the slow and unreliable international supply chain.” He did, however, have some good news. “The dam is more than 70 per cent complete, and significant elements are now constructed, including the rock-filled embankment, lower spillway, flip-bucket and plinths. This is a fine achievement, given the unpredictable challenges of building a dam during a global
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Inside: Sunflower salute Tākaka protest Grain harvester Graeme Beardmore THE GB WEEKLY, FRIDAY 4 MARCH 2022
CR CELIA BUTLER
More information was presented to last Thursday’s full council meeting about the new water rules under the new Water Services Act 2021, part of the Three Waters reforms. Things are becoming clearer as to how rural communities will be affected. The Water Services Act 2021 does not apply to stand-alone individual household supplies. The rules affect any water that is supplied by one source to one or more recipients. Although the immediate focus for government is on the big urban supplies, in the long run, all water supplies to more than one household will be required to have some form of treatment, though not necessarily chlorine. Rural water schemes that provide water to more than one household and fewer than 50 people will have much simpler rules. They won’t have to be registered as water providers until 2025, or have their Water Safety Plan until 2028, so there is plenty of time. Under the new Quality Assurance rules these “very small” schemes are a Category One, and will have to test for E coli six-monthly, filter the water with (as a minimum, a good quality cartridge filter – not a tap filter – and treat it with a UV light. This can be done straight after the water comes out of the stream, spring or bore, or off the roof, and collects in a tank, or where the water enters the receiving property (the end point). Distribution pipes will need to be tested six-monthly at rotating locations. The most important thing to note is that there is a big jump up in the rules for schemes that supply more than 50 people and under 500. These are Category Two schemes. Their testing will be six-weekly and chlorine will be required unless an exemption is granted, which will be an expensive process. Although there is plenty of time before the Category One schemes come under the regulations it may be worth looking ahead and considering the advantages of wherever possible keeping rural water schemes restricted to supplying 50 people. A Rural Supplies Technical Working Group has also been established by government to develop principles and agree how parties will manage the effects on rural drinking water suppliers and rural communities, and to develop recommendations to inform advice to ministers on proposed legislation. Continued on page 5
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pandemic, and the bad winter weather we had last year.” Despite Mr Scott’s rationale, the latest cost escalation provides critics of the project with further ammunition; the figure of $185m represents a 144 per cent overspend on the $75.9m forecast presented to ratepayers in 2017 when TDC went to public consultation. At that time, the cost estimate was described as “P95” or “as good as a fixed price” by pro-dam councillors – an assurance which critics argued was deeply flawed. Since 2017, as predicted by a number of these critics, the estimated completion cost of the dam has risen sharply (see graph, p2) and a continuing trend could see the final cost exceeding $200m. Current financial arrangements only cover up to $164m of project costs, and it’s up to TDC to find the extra $20m. Continued on page 2
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