Clyde’s planned multimillion-dollar wastewater scheme is tipped to cost $1.9million more than budgeted.
But most of the extra money will be recouped from under-expenditure in other projects and a property sale in Bannockburn.
Councillors at last week’s Central Otago District Council three waters infrastructure committee meeting were told the $11.7million project was now predicted to cost $13.6million.
This was based on the tender price for the pipeline, costs of completed design and investigation work and revised engineer’s estimates, a report from council executive manager infrastructure services Julie Muir said.
Councillors approved the over-spend, noting most of the money would be recouped from $780,000 under-expenditure on 2018-19 wastewater improvement projects and income from the sale of the Bannockburn wastewater site, which was expected to be between $300,000 and $500,000.
The rest of the money for the Clyde project will be included in the council’s 2020-21 annual plan budget.
Work on the Clyde scheme – in which a pipeline will be built to transport Clyde’s wastewater to the Alexandra wastewater treatment plant – is expected to begin within the next few weeks. Fulton Hogan has been awarded the contract.
Fulton Hogan will also build the pipeline for the Lake Dunstan Water Supply Project, which will provide a new drinking water scheme for Alexandra by piping water from new bores near Clyde’s drinking water supply.
Committee chairman Malcolm Topliss said the construction of the two pipelines represented the start of two “massive generational projects” for Central Otago.
The projects were “much-needed and significant investment, to meet environmental expectations to improve the quality of Clyde’s urban water discharges, and for drinking water in Clyde and Alexandra to comply with New Zealand Drinking Water Standards,” Mr Topliss said.
The Clyde wastewater project would be done in three stages, although the strong growth in Clyde meant the third stage could need to be brought forward, Ms Muir said.