Multi Million Dollar Cost Blowout on Whitianga Transfer Station

Written by on November 1, 2023

By John Freer

To complete the construction of a new Whitianga Refuse Transfer Station is understood to cost an additional $9.9 million.

This after an original estimate of $2.5 million. Thames Coromandel District Council halted work on the project earlier this year when it was agreed that the design was not fit for purpose.

Since that time all discussions at both Mercury Bay Community Board and Council level have been held behind closed doors.

It is understood Council discussed the revised cost at its meeting on Tuesday – again while the public were excluded. The now estimated cost of $12.4 million comes on top of additional expenditure incurred prior to 2022, on a number of preliminary plans following sector consultation.

The new Refuse Transfer Station was being built to incorporate the Mercury Bay Resource Recovery Trust’s facility in Whitianga’s Moewai Road. The trust was formed in 2020 with the objective to plan, establish, maintain and operate waste reduction and recycling for the area.

Driving force behind the project was the now Mayor Len Salt, who was the Trust chairman. A grant of $250,000 was made to the Trust from the Waste Minimisation Fund.

In a recent interview, Mayor Len told CFM that council had to take a step back on the project, a value engineering exercise had identified that more funding was required and that the project initially wasn’t adequately funded.

Click here to hear the interview recorded last month.

Reader's opinions
  1. Harvey   On   June 16, 2024 at 1:46 pm

    Most interesting, value engineering is not all about cost. seems to me the user requirement has blown out. go back to the original requirement and cut away nice to haves, shirt story is an expansive metalled area with existing bins will work. Containerized working spaces will work for recycling and capture. I would think Whitianga could have a bigger transferr station for less than the original estimate, as there is NO land acquisition required in this case.

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