Shovel ready projects a step closer to securing support
21 May 2020
Central Otago District Council has today received official notification that all three of the shovel ready projects it submitted to the Infrastructure Industry Reference Group (IRG), are a step closer to receiving government support making the "short list" of 802.
Council's Executive Manager - Infrastructure Services Julie Muir and Executive Manager - Planning and Environment Louise van der Voort received word this afternoon that the Clyde/Alexandra water and wastewater connection project, the Central Otago pipeline and reservoir project, and the Central Otago subdivision and development project were three of 802 projects that IRG were putting forward for consideration by Government from 1924 projects that were submitted from across the country.
Ms Muir said she was "really delighted" that these CODC projects are on that list sent to Economic Development Minister Phil Twyford and Infrastructure Minister Shane Jones this week.
"It's no guarantee that our projects will be funded, but to get to this next stage and still be in the running is great news. Particularly for the Clyde Wastewater and Lake Dunstan Water Supply projects as we are close to being ready to commence construction on the next stages of these."
Ms van der Voort said if successful the Central Otago subdivision and development project "would provide much needed economic stimulus to the construction and building industries, and associated supply chains and trades, and will help address housing affordability".
At the time the applications were lodged last month for the projects Central Otago Mayor Tim Cadogan said all projects would "provide much-needed stimulus for our district's economy and employment".
"Not only are these projects shovel ready, they are future ready projects that will deliver long lasting environmental, social and cultural benefits for our Central Otago community."
More on the projects:
The Clyde/Alexandra water and wastewater connection project is a major project that has commenced, but is likely to have delays to the timeline due to rising costs. This project has significant long term public health and environmental benefits. It combines stage 1 of the Clyde wastewater reticulation programme and the Lake Dunstan water supply upgrade. The application is for the additional funding of $16.3 million required to enable water treatment for the combined Alexandra and Clyde scheme to the New Zealand Drinking water standards to proceed, and to meet increased estimated costs on the wastewater project. Costs on the water treatment have increased due to the presence of the lindavia algae, and costs for stage 1 of the wastewater reticulation construction and main pump station may be higher than originally estimated.
The Central Otago pipeline and reservoir project can be kick-started quickly and would provide much needed economic stimulus to the construction industry, as well as providing improved resilience for critical infrastructure. This package of work (total value of $14.3 million) includes projects that were scheduled in Council's Long Term Plan to commence in 2023, however the projects could be kick started quickly as they are simple design and construction projects, and have no land or resource consenting, or consultation requirements. The package includes construction of dedicated rising mains at Cromwell and Bridge Hill in Alexandra, reservoir construction at Pisa and Alexandra, and a new water pipeline to Bannockburn.
The $17.2 million Central Otago subdivision and development project includes construction of the infrastructure for the next stage of the Gair Ave residential development, the Alexandra Pines residential development, and a new link road between Dunstan Road and Boundary Road industrial areas. It would provide infrastructure that would allow direct release of 145 sections for residential development, and potentially a number of industrial and commercial lots. The link road would provide direct access to two commercia/industrial areas, as well as a bypass for heavy traffic to avoid residential neighbourhoods.