Early Dam Pricing Indications Pose Challenges

Thursday 5 July 2018

The project office is in the final stages of the pricing process for the proposed Waimea Community Dam and early indications are there will be significant challenges to remain within the estimated cost, Tasman Mayor Richard Kempthorne said this morning.

“It is important to note this is part of the pricing process and no final figure has been reached, but we want to be transparent about where we are at in the process.

“The next step is to examine the figures from the contractor and the independent estimator. The extended process is an indication of the complexity of the project. The Council has been extremely clear that the project must be affordable.”

The dam is the preferred option and the least expensive to address the threats of critical water shortages, particularly given the significant contribution from irrigators and the Government.

“If we reach a position where the dam is no longer an option more severe water rationing measures will come into effect. These measures will have serious impacts on urban and rural users, business and overall on the economy and environment.”

The dam will secure supply and all but eliminate the need for water restrictions, except in the most extreme event (a once in 60 year drought).

“If the final price is confirmed to be significantly over the estimated cost and no viable option can be found to meet the difference, then the dam is unlikely to go ahead.

“We are expecting to have a final price in early August for the Council to consider.”