CODC submits three 'shovel ready' projects for government support
17 April 2020
Central Otago District Council has submitted three projects to the Infrastructure Industry Reference Group, a group set up by Government to seek out "shovel ready" infrastructure projects that can start quickly to stimulate the economy and reduce the economic impact of COVID-19.
The projects are the Clyde/Alexandra water and wastewater connection project, a Central Otago subdivision and development project, and a Central Otago pipeline and reservoir project.
Central Otago Mayor Tim Cadogan said all three projects met the Government's criteria of work that would be ready to begin as soon as the COVID-19 response level is suitable for construction to proceed.
"I take my hat off to staff who have put together strong applications for projects that will 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."
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 subdivision and development project will provide much needed economic stimulus to the construction and building industries, and associated supply chains and trades, and will help address housing affordability. The $17.2 million 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.
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.