Prison pipeline costs outlined

Questions raised over the ratepayers funding a wastewater system that will benefit Waikeria Prison were put to Waipa¯ District Council last week by Waipa¯ Post.

It was recently announced that a $22.4 million dollar contract to build a new 10km wastewater pipeline from Waikeria Prison to Kihikihi has been awarded by the council to Spartan Construction Limited.

It is part of a total project valued up to almost $33 million.

The pipeline project also includes building a pump station, associated inlet and screening works, and storage tanks at the prison.

Council water services manager Tony Hale said the project would improve the health of the Puniu River catchment and the Mangatutu Stream and deliver significant improvements to the wastewater network in Te Awamutu.

“As well accommodating expected increase in flows from the prison, it will also provide an increased capacity for Te Awamutu’s projected growth,” he said.

Council is managing the project, which is jointly funded between council and the Department of Corrections.

The funding is split in two ways: Project’s internal staff and external consultancy costs;

Physical construction capital costs (including contract contingencies).

All internal staff costs and external consultancy costs associated with the design and construction of the wastewater connection are 100 per cent recoverable from the Department of Corrections.

Physical constructions capital costs, which were agreed by both organisiations, are split between Waipa¯ District Council and the Department of Corrections.

The principles of the cost share are:

The Department of Corrections pays for all capital costs directly attributable to the connection of Waikeria Prison to Waipa District Council’s reticulated wastewater network;

Waipa¯ District Council pays for all capital costs to increase capacity over and above what is required for connection of Waikeria Prison, based on the 2035 growth projections.

Council’s funding share of budgeted costs is $4.25 million and Corrections is $28.72 million.