An artist's impression of the new sludge minimisation facility at Moa Point. Photo: Supplied / Wellington City Council
A budget blowout is expected at Wellington City Council's sludge minimisation plant scheduled for completion next year.
On Friday morning several councillors confirmed to RNZ they had been made aware of a budget blow-out during a public-excluded session last week.
On Friday afternoon Wellington City Council said elected members had been given a preliminary briefing about the challenges faced with building the new Te Whare Wai Para Nuku sludge minimisation facility currently under construction at Moa Point, with several factors driving increased costs to complete the project.
Initially, $400 million was raised for the plant, with ratepayers levied to fund it. That cost has now jumped to nearly $430 million and RNZ understands it's expected to soar much higher.
A council spokesperson said while staff were still investigating the situation, several key themes that were driving increased costs to complete the project had emerged.
"These include a later practical completion date than anticipated, changes in design, identification of historical costs which weren't originally included, and re-assessment of risks with the pathway and process for commissioning the plant," the spokesperson said.
A more detailed report on cost and funding implications will be outlined to elected members in a briefing on Thursday 14 August.
The matter will also be considered at the council's long-term plan finance and performance committee on Wednesday 20 August.
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