Budget Blowout On Canty Transport Projects
January 29th, 2009
The cost of two of Christchurch’s biggest transport projects have ballooned by more than 60% to almost $280m up from an original estimate of $170m leaving local govt scrambling to fund an even bigger transport budget shortfall. The city council is faced with having to find an extra $43.6m for its planned new bus exchange. The new central city exchange was originally estimated at $60m but will now cost $103.6m. Council GM of City Environment, Jane Parfitt, is defending the blowout saying the original bus exchange estimate was set before the site was identified and is based on public transport projections at the time. With revised passenger estimates extra money is needed to buy more land and design a larger interchange. Christchurch Mayor, Bob Parker, says the exchange still needs to be built despite the cost escalation. “It’s a key part of our urban development strategy.” He adds the existing exchange has reached its capacity and the council does not want to repeat the mistake of building a conservative development which is not future-proofed.
Rising construction costs to blame. Meanwhile soaring construction costs have also hit the city’s new southern motorway extension, which NZ Transport Agency (NZTA) confirms will cost $66.7m more. The extension between Barrington St and Halswell Junction Rd was expected to cost $110m, but the NZTA has confirmed the estimate has risen to $176.7m. NZTA Canterbury-West Coast regional director, Mark Yaxley, says the rising price of bitumen, fuel and steel has pushed up costs. The cost blowouts have also widened the region’s transport budget funding shortfall for the next 10 years with the deficit now $184m, up from $145m.
Copyright © Media Information Ltd
NZ Transport Intelligence Briefing
Amalgamated Dairies
Strait Shipping