Whakatāne Boat Harbour Project: Millions Lost, No Accountability
Whakatāne – May 16, 2024 – The costly Whakatāne boat harbour project’s cancellation leaves a trail of financial losses and a lack of accountability. the project collapsed due to soaring costs, primarily because of contaminated soil. Investigations into the financial impact are ongoing. For any further developments, stay tuned.
Whakatāne Boat Harbour Project: Millions Lost, No Accountability
The failed Whakatāne boat harbour project has left a trail of unanswered questions and meaningful financial losses.despite commitments from the Whakatāne District Council, the government, and the board of Te Rāhui Herenga Waka, no one can definitively state how much money has been lost.
Project Wind-Down: A Slow process
Both the council and the Ministry of Business, Innovation and Employment (MBIE) have indicated that the te Rāhui Herenga Waka whakatāne Board is currently developing a plan too wind down the project. This plan aims to identify expenditures to date and determine what funds might be available for redistribution to partners.
Did you know? Fast-track consent for the boat harbour was granted through the Covid-19 Recovery act 2020, highlighting the initial urgency and importance placed on the project.
Though, the timeline for this process remains unclear. According to sources, the Te Rahui general partner was seeking advice on the required steps before sharing the work program with the limited partners.
This suggests a cautious and perhaps lengthy procedure.
Project Cancellation: Rising costs and Diminishing Returns
The boat harbour project was officially canceled earlier this month. The primary reasons cited where escalating costs due to contaminated soils and a diminishing payoff for the community and local economy.
Financial Investments: Millions Already Spent
as of December of last year, approximately $3.7 million had already been spent on preliminary works, soil testing, security, lighting, and machinery, according to project manager Phil Wardale.
Pro Tip: Soil contamination is a common issue in construction projects, especially on former industrial sites.Thorough environmental assessments are crucial to avoid unexpected costs and delays.
in 2021, a limited partnership was formed between the Whakatāne District Council, the crown (through Kānoa – Regional Economic Growth and Investment Unit), Te Rāhui Lands Trust, and ngāti Awa Group Holdings to oversee the project.
the government committed a total of $19.6 million to the project.According to an MBIE spokesperson, a $1 million grant was provided to Te Rāhui Lands Trust, and $9.8 million was invested into the limited partnership.
The Whakatāne District Council committed $9.8 million in its 2021-2031 Long-term Plan, sourced from a loan against the Harbour Endowment Fund. Chief executive Steven Perdia stated that Council has introduced $5.7m to the project to date.
He added that the council would make the total costs public once they were fully resolute.
Reasons for Failure: A Combination of Factors
Delays and cost overruns, primarily due to soil contamination on the former industrial dump site, led to a rescoping report presented to the Whakatāne council earlier this year.Ultimately, none of the partners were willing to invest further funds.
On May 7, the partners officially announced the project’s cancellation. Limited partnership chairman John Rae cited several reasons, including significant reduction in size of the land remediation component
and significant changes to the broader project scope – such as the removal or reduction of the marine training facility, the reduced number of berths, the size of the hardstand and removal of the dedicated offloading wharf – and the diminished economic and community benefits that underpinned the original business case.