Hospital’s rebuild up to $400m
The cost of the Taranaki Base Hospital redevelopment has blown out by $100 million, with the health board being warned costs could increase further before completion in late 2024.
The original price for Project Maunga stage 2 was projected to be $300 million when work started in late 2020.
In February, the Taranaki District Health Board (TDHB) said the cost of the rebuild had gone up by $25m to $325m.
And that has now increased again to $400.9m, TDHB finance and corporate services general manager George Thomas said in his report, tabled at the board meeting in June.
‘‘In early May 2022, we were advised of the approval of $61.10m in additional Crown equity funding for the project,’’ he said.
Crown funding will make up $397.10m of the overall cost. The remaining $3.8m shortfall has been left to the TDHB to fund.
The first stage of the redevelopment was finished in 2015 at a cost of $80m and stage 3 will begin about five years after the completion of stage 2.
The completion date for stage 2 is still November 2024, Thomas said in his report.
‘‘The estimated costs are constantly changing as alternative approaches and options are explored. The supply chain and prices are volatile, adding complexity and uncertainty to budgetary planning and procurement.’’
Increasing construction costs are also having an impact on two other TDHB projects – the upgrade of the mental health facilities, and Taranaki Cancer Centre – which fall outside Project Maunga.
As such Thomas warned costs could increase further.
‘‘To forecast a firm end project cost for any of these [three projects] – under the current fluctuating market – would be a guess.’’
The DHB has Government funding for an $8 million upgrade of mental health services, including further refurbishment work in its mental health inpatient ward areas.
But in his report Thomas said the current cost of the upgrade was ‘‘materially in excess of the approved outlay of $8m’’.
So, the DHB intends to prioritise two key sub-projects being the Tukapa House (high and complex needs service) and Te Puna Waiora ( TPW) (inpatient unit) for immediate action, and will address the needs of other areas in a phased manner.
This proposal has been submitted to the Ministry of Health for approval, including a revised plan on how it will be funded.
Meanwhile, work has begun on elements of the TPW upgrade, and completion of the preliminary design for the Tukapa House.
The Taranaki Cancer Centre build is still in the early stages.
In January this year, the Ministry of Health approved the business case proposal at a cost of $35.5 million, with Crown funding of $33m and the remaining $2.5m to be funded by the TDHB.
Meanwhile, a 45m tall tower crane will be on site from the beginning of July as part of the Project Maunga stage 2 construction work.
It is nearly as tall as the Wind Wand and has the ability to lift 20 tonnes – that’s the equivalent of three African elephants, or 40 dairy cows, or 4000 cats – and can reach as far as 71m, the length of a Boeing 747 jumbo jet.
The crane is set to be part of the Taranaki landscape for around 18 months as construction work on the New East Wing Building at the hospital progresses and the TDHB want a name for it.
Suggestions can be made via the TDHB Facebook page or by emailing namethecrane@tdhb. org.nz – the top five suggestions as decided by a panel of judges will then be put to a public vote. The person who suggests the winning name will win an ipad.