Report from RNZ by Charlotte Cook
A review into Wellington’s billion dollar highway Transmission Gully has found the project was flawed from the start.
The 27 kilometre stretch of motorway was supposed to cost $850 million but has now exceeded a budget of $1.25 billion.
The report, led by an international expert reviewer Steve Richards and peer reviewed by Sir Michael Cullen and Lindsay Crossen, has found serious flaws at the planning stage of the public-private partnership project, undermining its successful completion.
It was commissioned in August after the Transport Agency Waka Kotahi had to pay another $209.7m to get the project back on track after the Covid-19 lockdown. Official documents show the negotiations went on for months and the contract could have been terminated.
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Wellington s Transmission Gully review shows there s no value in trying to cut corners
20 Apr, 2021 04:00 AM
6 minutes to read
Transmission Gully. Photo / Mark Mitchell
ANALYSIS:
The price of Transmission Gully was too good to be true and demonstrates why there s no value in trying to cut corners when it comes to building large infrastructure projects. An interim review into the 27km Wellington road undertaken by Te Waihanga, the Infrastructure Commission, was made public on Tuesday.
The key finding, an issue that has become increasingly apparent for a while now, is the price was set far too low to begin with, resulting in major implications for the project.
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Photo: RNZ / Dom Thomas
The 27 kilometre stretch of motorway was supposed to cost $850 million but has now exceeded a budget of $1.25 billion.
The report, lead by an international expert reviewer Steve Richards and peer reviewed by Sir Michael Cullen and Lindsay Crossen has found serious flaws at the planning stage of the public-private partnership project, undermining its successful completion.
It was commissioned in August last year after the Transport Agency had to pay another $209.7million to get the project back on track after the Covid-19 lockdown.
Official documents show the negotiations went on for months and the contract could have been terminated completely.