Waimea Water Limited has advised shareholders that it has revised the estimated cost of completion for the Waimea Community Dam to $185m, requiring an additional $20m from the earlier estimate in June last year of a maximum $164m.
Continued challenges with the geology, inflationary and construction pressures arising from the pandemic are key among a range of reasons for cost increases.
Although now 70 per cent complete, even with the increased estimate, there are still risks associated with the project, particularly with the uncertainty of Covid 19 impacts over the remaining timeframe for completion.
Tasman Mayor, Tim King said the latest estimate was another blow in a project that has been incredibly challenging but it was important that the Dam continues to be engineered and built to the highest standard.
“WWL have had to find and implement solutions to complex geological issues. A high quality, safe and enduring dam remains their priority . Unfortunately we have struck the most challenging time to build a large and complex infrastructure project”.
"Once finished, the dam will secure the region's water supply for the next 100 years, improve water quality, accommodate growth, and underpin the economy," said Mayor King.
“In the face of such challenges it is easy to lose sight of just how important the dam is to the future of our district”
The Council will consider the impacts of the cost increase and options to respond by the end of March as part of the annual planning process for the 2022-2023 year. Longer term considerations will need to be made for the annual and long term plans that follow.