The New Zealand Herald

Lawyers get $1.7m for road

- Georgina Campbell

While Wellington­ians have waited year after year for Transmissi­on Gully to be built, lawyers have been paid $1.7 million for work on the project.

The 27km motorway is behind schedule and will now cost $1.25 billion after massive budget blowouts.

The road is being built through a public-private partnershi­p (PPP), the Wellington Gateway Partnershi­p (WGP), with CPB Contractor­s and HEB Constructi­on sub-contracted to carry out the design and constructi­on.

NZTA Waka Kotahi has confirmed it spent $1,757,410 for lawyers and legal related costs on the PPP since the contract was signed in 2014.

The figures were revealed in response to a written parliament­ary question by Green Party transport spokeswoma­n Julie Anne Genter.

Genter said the experience of Transmissi­on Gully showed PPPs should not be used for delivering large transport infrastruc­ture projects.

“The public private procuremen­t model was touted as a way to save money, but it has proven to be extremely costly.

“It’s $1.7 million that could be going to actual improvemen­ts in infrastruc­ture rather than to lawyers.”

NZTA has been left with no other option but to negotiate major settlement­s with contractor­s after Covid19, the Kaiko¯ura earthquake, and severe weather events.

These settlement­s have sent the cost of the project skyrocketi­ng from $850 million to $1.25b.

A Waka Kotahi spokespers­on said NZTAhad taken a careful and considered approach to reach a settlement agreement earlier this year which closed all contract claims and issues.

Those most recent negotiatio­ns concluded to the tune of $208.5m.

The agency noted the $1.7m spent in legal costs represente­d 0.14 per cent of the overall project cost, which was not unusual for large capital projects.

“Waka Kotahi is confident that these costs have been necessary to ensure that project delivers value for money for road users and taxpayers.”

New Transport Minister Michael Wood said he was keeping an eye on the project and he planned to visit the site in early 2021 to get the view from the ground.

“While it’s unfortunat­e the contract the previous National Government signed off on allowed for these legal costs to be incurred, I know Waka Kotahi has worked hard to get the project back on track.”

Meanwhile, a review overseen by the Infrastruc­ture Commission into the project is under way.

It will investigat­e how Transmissi­on Gully was awarded for the agreed price and whether it was actually realistic.

 ??  ?? Julie Anne Genter
Julie Anne Genter
 ??  ?? Michael Wood
Michael Wood

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