Construction cost rises hit project
Escalating construction costs have impacted on the budget for two digesters at the Christchurch Wastewater Treatment Plant and the Council has approved additional capital funding of $8.59 million for the project.
Three tenders were received for the project, the lowest of which was $15.52m, giving an over-all project cost of $18.59m. In 2002 it was estimated at $6.2m and this was re-estimated to $10m a year ago.
General Manager City Environment Jane Parfitt says the increase reflects the ongoing difficulties the Council is experiencing in reconciling budgeted costs with the current soaring costs in the construction industry.
“The construction industry worldwide is booming and demand has seen prices escalate for materials such as cement and steel,” Mrs Parfitt says.
“We are not alone in this situation as throughout New Zealand capital project costs, in both local government and private enterprise, are exceeding budget estimates.”
The current digesters are periodically overloaded and this can cause process and odour problems. The additional digester capacity is needed to meet the increasing demand at the plant. The planned digesters have been sized to meet predicted loads and flows through to 2026. The additional digester capacity will increase biogas production which will allow for some extra electricity generation on the site.
“The additional capacity could not be delayed without significant risk of partial process failure at the treatment plant,” Mrs Parfitt says.
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