Gully road talks cover funds, delays

The NZ Transport Agency is fighting rumours about Transmission Gully delays as it nails postlockdown negotiations with the road builder, including how much it could be paid.

The agency has revealed that funding and late penalties for the billion-dollar road are being discussed again – as well as the new opening date.

This week the agency said work to open the four-lane road would now extend into next year.

An agency spokeswoman said it could not comment further while negotiations with contractor CPBHEB were under way, but ‘‘issues related to funding and penalties’’ were also being discussed.

Earlier this year the agency settled claims made by the company over unavoidable costs and delays, which saw it paid an additional $190 million. The opening deadline, already pushed back from April to May, was shifted again to November.

Now a perceived slow restart after lockdown has triggered speculation in the industry about the status of the project.

The agency emphatically denied concerns about a suspected post-lockdown deal where funding to the contractor was cut but it had been given an additional two years for completion without penalties.

On Sunday, Road Transport Forum chief executive Nick Leggett said he had been told by people involved with the project that contracting equipment had been removed from site and worker numbers cut.

Paul Blair

Infrastructure NZ chief executive

‘‘It always takes time to start a site up and close a site down.’’

‘‘They have also suggested the budget has been cut and the timeline has been extended two years.’’

An agency spokeswoman said that was not correct — the agency had clearly stated it was still negotiating with the contractor to confirm a new completion date.

Transport Minister Phil Twyford said he expected the agency to update the public with a new completion date as soon as it was able. ‘‘I won’t be commenting on hypotheticals.’’

Agency project delivery senior manager Andrew Thackwray said work resumed on the project on last week ‘‘at a number of sites along the 27-kilometre route’’.

Infrastructure NZ chief executive Paul Blair said the delay was not surprising, and people needed to be patient.

‘‘We’ve probably lost six weeks of the most productive time, and included in that they had to make the site safe . . . It always takes time to start a site up and close a site down.’’

Ka¯piti Coast mayor K Gurunathan said it was disappointing that the road would be delayed, but it was a challenging situation for all involved.

‘‘We have been talking about this happening for 50 years or more.

‘‘What’s another comes to that?’’ year if it