The cost of the Waimea Community Dam has once again blown out, this time by another $10 million, with completion now expected to be 16 months behind schedule.
Tasman District Council heard today that the expected cost is now $195 million - up from the $185 million projection in February, with completion now looking to be in February 2023.
Council heard an update from Waimea Water Ltd (WWL) chief executive Mike Scott on how the project is progressing at its full council meeting on Thursday.
Mike says Covid-19 continues to cause delays across the entire supply chain and told councillors that the contractor had lost more than 7000 worker hours on the project due to the pandemic.
Mike says while most materials are now in Brightwater there are still 14 ton of valves and fittings in Germany that need to be freighted.
“They were due to be delivered in January, here we are in June, and they are still in Germany,” he says.
Mike says they are now getting ready to air freight a 3.5 ton valve as well as 3.5 ton of fittings from Germany.
When funding was initially approved, the dam’s completion date was expected to be October 2021 with the dam coming into full commission from January 2022.
In December 2021 these dates were delayed to between July and September 2022 and between January to March respectively.
Completion of the dam and closure of the reservoir is now forecast to be in February 2023, seven months later than expected earlier this year, and 16 months later than the original plan.
The subsequent mechanical and commissioning work is also further delayed until early February 2024, two years behind the original plan.
“This delay and associated cost is disappointing, frustrating and a lot longer than we can comprehend or had expected,” Mike says.
He says WWL is currently seeking advice and looking at options and measures to mitigate some of this delay.
“Based on my experience, it does feel like a long prolongation of works, and we believe there is opportunity to mitigate some of that delay,” he told councillors.
“We will continue to push and help the contractor mitigate this delay, although the current economic climate means it is a tough time to source more project capability.”
The dam is now more than 70 per cent complete. The completion of the dam’s concrete face was the most recent construction achievement, and the parapet walls are now being installed on top of the embankment. The spillway is also nearing completion. The dam face pipes will be installed next month, and the winches and screens are due to be installed soon afterwards.
“While it is pleasing to see the dam and spillway also nearing completion, and I thank the contractor, Fulton Hogan Taylors for their effort in trying circumstances over the first half of this year, we are clearly going to need to put more focus into the river diversion and mechanical works,” Mike says.
The latest cost of $195 million doesn’t include unquantified risks such as excess weather events or dispute proceedings.
During the meeting councillors expressed their disappointment in the cost increase and time extension.
Councillor Dean McNamara expressed his concern at the short time-frame councillors had to consider the report before Thursday’s meeting.
“It’s entirely inexcusable that we keep getting these reports on the night before, or day of, that we’re expected to be discussing them.”
When addressing council Dean said they were raising the rate-cap but under-delivering.
“I said previously anyone who believed it [the dam] would be delivered for $158m had rocks in their head. This council has stumbled from overspend to overspend.”
