RiverLink partners go it alone

Thursday, 28 March 2024

The $700 million RiverLink upgrade was to be the most significant infrastructure project in Lower Hutt's history.

A major Lower Hutt infrastructure project has suffered another set back, with two key partners withdrawing from the alliance running the $700m project.

Plans for RiverLink include a new interchange on State Highway 2, relocating the Melling Station and upgraded flood protection.

On Thursday, Greater Wellington and Hutt City both confirmed they were going it alone.

Over the past 12 months RiverLink appeared to stall as the price of the complex project increased. The alliance running it, includes the Hutt City and regional councils, NZ Transport Agency Waka Kotahi and contractors AECOM-Fletcher, as well as iwi partners.

It had become increasingly clear Greater Wellington was frustrated with the ongoing delays and the lack of progress on the design.

Construction was supposed to begin late last year. Greater Wellington began working independently on the inner city stopbanks in February, citing the need to safeguard the city from flooding.

Greater Wellington chairperson Daran Ponter said on Thursday the council’s flood protection team was well-equipped to oversee construction of the stopbanks.

The river is a major threat to the city and Greater Wellington believes upgrading the stopbanks is a priority.

However, estimates prepared by the alliance suggest the council may need to find additional funding. It has budgeted $295m and has $165m remaining in the budget.

Hutt-based Labour list MP Ginny Andersen said given the lack of progress, she was not surprised the two councils wanted to progress the project independently.

“It raises concerns about the overall health of the project and whether it will proceed.”

The alliance had been looking at ways to reduce the price and find agreement on, she said, which “pretty parts” could be removed from the design.

Mayor Campbell Barry speaks at the formalising of an agreement to build RiverLink in May 2023. (File Pic)

Mayor Campbell Barry said the Hutt City components of the project would now be overseen by a “specialist in-house team” set up in December to streamline infrastructure delivery across the city.

The alliance will continue to deliver the more complex integrated aspects of the programme, including the city pedestrian bridge from the new Melling Station and relocating the station.

Barry said the project was important to the future of the city and the new set-up was the best way to make progress.

“A programme of this size has a lot of moving parts and it makes sense for some aspects to be overseen in-house to ensure greater affordability and oversight of this transformative project.”

Hutt City would continue to work with the other agencies to coordinate construction.

“We will continue to work with our partners to provide a cohesive approach to the project and improve the resilience and liveability of our city.”

Hutt South MP and Minister of Infrastructure Chris Bishop said he remained committed to the project and was “comfortable” with the approach being taken by the two councils.

Work began demolishing properties in Pharazyn Street to make way for new stopbanks in August 2023.

“The core alliance model remains in place for the most important and complicated parts of the project.”

Chairperson of the regional Te Awa Kairangi subcommittee, Ros Connelly, said ratepayers would be better served by Greater Wellington working directly with contractors.

“Flood protection is a core council function. It was initially included in the Alliance scope of work on the expectation that cost savings would be generated through innovation and synergies with other aspects of the project. This has not eventuated and in fact, it has become more expensive.”

RiverLink timeline

– 1840, early European settlers living in Petone are hit by a large flood from Te Awa Kairangi. Most choose to move to Wellington.

– 1858, a massive flood killed nine settlers.

– 1991, civic leaders began working on a plan to reduce the risk of the Hutt Valley being devastated by a large flood.

– 2001 the Wellington Regional Council produced the Hutt River Floodplain Managements Plan, a 40-year plan to safeguard both Upper and Lower Hutt, with a budget of $78 million. Politicians note that the most vulnerable area is central Lower Hutt and a flood would cause $1b in damages.

– 2010 the Hutt City Council again began looking for ways to reinvigorate its central city. That led to a number of projects, including the $34m events centre and subsidising a hotel. It also led to the realisation that the city had to be turned towards the river.

– 2010 to 2015: Civic leaders begin to realise that the work needed for flood protection was also a good opportunity to build a new bridge across the river. Over time that becomes a plan for a Melling interchange and changes to the Melling Line.

– 2018: RiverLink gets the green light. Although it includes a new bridge, it does not include an interchange at Melling. The cost of a new Melling bridge is estimated at $34 million and relocating the station $23m. The budget for flood protection and urban design improvements (including a foot bridge and a river promenade) is $168m, with the biggest item $82m to buy properties to make way for the new stopbanks.

– 2019: The project is delayed by a year to allow the New Zealand Transport Agency (NZTA) to develop its business case for an interchange at Melling.

– 2021: Resource Consent lodged for the $700m project, which now included, the Melling Interchange. Construction is scheduled to begin in 2023 with the Melling Interchange section completed in 2027.

– 2022: The council gets $98m from a government infrastructure fund. It is to be used to build new infrastructure as part of the urban redesign associated with RiverLink. It is estimated that it will result in 3500 new apartments.

– 2023 (May): Representatives from Taranaki Whānui ki Te Upoko o Te Ika, Ngāti Toa Rangatira, Hutt City Council, Greater Wellington Regional Council and Waka Kotahi NZ Transport Agency signed an interim agreement with AECOM-Fletcher to build RiverLink. Work is scheduled to begin later that year.

– 2023 (August): Wellington commuters warned to expect 18 months of traffic “chaos” when construction of the interchange gets underway. Greater Wellington says it will be closing The Melling Line for up to 18 months, as it relocates the Melling Station

– 2023 (September): Mayor Campbell Barry expresses doubts that RiverLink can be built for $700M. He suggests $1.2b as a more realistic future.

– 2024 (January): New Infrastructure Minister Chris Bishop confirms RiverLink is under significant financial pressure and needs to be “sliced and diced”.

– 2024 (January): With rumours swirling about its future a senior project manager describes RiverLink as “not currently affordable”.

– 2024 (March): Hutt City and Greater Wellington withdrawal from the alliance, saying they will instead use their own in-house expertise.