Minister announces new plan for Metro Sports Facility
30 November 2017
NZ Government: The Minister for Greater
Christchurch Regeneration, Megan Woods has today announced a new plan
for the
Metro Sports Facility anchor project, after it was revealed the
long-delayed project was expected to exceed its budget by $75 million
under the current approach.
The previous government’s plan was for an
early contractor involvement
process, however official advice to the Minister showed that if the
project went ahead on the current
procurement approach, it would be well
over budget.
This increase was made up of a new increased price by the preferred
supplier and an increased risk allocation to cover the project. The
project had also fallen further behind schedule, being delayed until the
last quarter of 2020.
“As an incoming Minister, I have been conducting a thorough review of
progress on the Anchor projects and to learn of a $75 million budget
blowout on this project was very disappointing. That is an undue burden
on taxpayers and ratepayers for a project that is already significantly
delayed – in fact the facility was due to be opened by now, yet
construction has not even begun. We can do better.
“This Government is committed to faster, concrete progress on the
Canterbury recovery. We want action and momentum, not the delays and
roadblocks we have seen in years past.
“That’s why I am announcing today that the early contractor involvement
will be cancelled and I have instructed officials to undertake urgent
work to get this project back on track.
“I have asked for two pieces of work– the first is for Ōtākaro to
complete the detailed design work itself and get ready to go out for a
new build-only contract. This will be completed by March/April 2018,
allowing for the facility to be opened in the first quarter of 2021 if
we proceed with this contract.
“I have also asked officials to use this time to partner with the
Christchurch City Council on an urgent review of options for the project
such as whether it would be beneficial to combine part or all of the
Metro Sports Facility with the proposed
Multi Use Arena. This will allow
us to test whether the assumptions made in 2012 about this project still
hold up and we are still getting a facility that meets the city’s needs
and is fit for purpose.
“We will act urgently, as we are aware we are inheriting a project that is already well behind schedule. Having this work complete by the time a build-only plan is ready means no time is lost by considering other options now.
“At that point, I will make a decision about which option to proceed
with and a construction timetable can be established. This review will
give us a clear plan to deliver this project as quickly as possible,
with a timeline we can be upfront about and have confidence in, in a
manner we can afford.
“The people of Canterbury were promised a high quality sporting
facility. It’s clear that the plan agreed under the previous government
was not going to be able to deliver that without unacceptable extra
costs. I know we can’t continue with the same approach and expect a
different outcome. Today’s announcement is about setting out a clear
roadmap to deliver a fit for purpose facility that Cantabrians deserve,”
says Ms Woods.
--ENDS--
Source: New Zealand Government - www.beehive.govt.nz
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