New opening date for stalled Transmission Gully the million-dollar question

Wednesday, 6 May 2020

The Transmission Gully motorway north of Wellington was due to open in late 2020.

The NZ Transport Agency is fighting rumours about Transmission Gully delays as it nails post-lockdown negotiations with the road builder, including how much it could be paid.

The agency has revealed funding and late penalties are being discussed again — as well as the new opening date — for the billion-dollar road.

This week the agency said work to open the four-lane road would now extend into 2021, and it was committed to seeing the project completed as quickly as possible.

An agency spokeswoman said they could not comment further while negotiations with contractor CPB-HEB were underway, but 'issues related to funding and penalties' were also being discussed.

Earthmoving machinery and vehicles stay idle on the Transmission Gully roading project at Pauatahanui, Porirua, during lockdown.

* Transmission Gully hits a stumbling block

* Transmission Gully motorway construction 'considerably behind' schedule

Vehicles awaiting work to restart on Transmission Gully.

Earlier this year the agency settled claims made by the company over unavoidable costs and delays, which saw it paid an additional $190 million. The opening deadline, already pushed back from April to May, was pushed back again to November.

Now a perceived slow restart after lockdown has triggered speculation in the industry about the status of the project.

The agency emphatically denied concerns about a suspected post-lockdown deal where funding to the contractor was cut but it had been given an additional two years for completion without penalties.

Dusting off the old work on Transmission Gully, after the drop to level 3.

On Sunday Road Transport Forum CE Nick Leggett said he had been told by people involved with the project that contracting equipment had been removed from site and worker numbers cut.

'They have also suggested the budget has been cut and the timeline has been extended two years.'

An aerial view of work on Transmission Gully, before the level 4 lockdown. (File photo)

An agency spokeswoman said that was not correct — the agency had clearly stated it was still in negotiation with the contractor to confirm and agree a new completion date.

Transport Minister Phil Twyford would not comment on the rumours, as the negotiations with the contractor were being undertaken by the agency.

In a written statement Twyford said he expected the agency to update the public with a new completion date as soon as they are able. 'I won’t be commenting on hypotheticals.”

Works near Linden at the southern end of Transmission Gully. (File photo)

Agency project delivery senior manager Andrew Thackwray said work resumed on the project on April 29 'at a number of sites along the 27 kilometre route'.

'New worksites are being progressively started as the crews are re-inducted to ensure compliance with the new Covid-19 protocols.'

National transport spokesman Chris Bishop said he had heard that 'basically nothing' was happening on the project at the moment. The project, according to sources, was a 'trainwreck'.

Kāpiti Coast mayor K Gurunathan says we have been talking about this for 50 years or more. 'What's another year if it comes to that?'

Bishop said he had been contacted by multiple people who had worked on the project. 'The universal feedback I'm receiving is there's absolutely no chance of a 2021 completion.'

Infrastructure NZ chief executive Paul Blair said the delay wasn't surprising, but people needed to be patient.

'We've probably lost six weeks of the most productive time, and included in that they had to make the site safe … It always takes time to start a site up and close a site down.'

Blair would not speculate on when the road might open but it was 'really difficult' terrain on which to build. 'It's absolute goat country through there.'

He said the government could have ended up paying double the original quote if it took on the work itself, rather than through a public-private partnership.

Instead, consortium members 'wore' that risk, he said.

The entire industry was grappling with the fact that no contracts had foreseen Covid-19, he said.

Porirua mayor Anita Baker said the council had heard nothing recently about progress on the project, post-lockdown.

'I just want a timeline from them, I want them to be honest and upfront, and tell us how long it's going to take.'

Kāpiti Coast mayor K Gurunathan said it was clearly disappointing that the road would be delayed, but it was a challenging situation for all involved.

'We have been talking about this happening for 50 years or more. What's another year if it comes to that?'

Construction began on the 27km-long road in 2015, with April 2020 initially touted as the month traffic would finally flow onto four-lanes connecting Linden in north Wellington to Paekākāriki on the Kāpiti Coast.

The public-private model for the project was crafted under a National government.