Officials are worried about Whakatāne Boat Harbour Costs. Artists Impression/Supplied.
Officials anticipate increased costs to remediate the land and build the Whakatāne Boat Harbour.
A Ministry of Business, Innovation and Employment document on September 18th, obtained under the Official Information Act, said the increased costs are due to rising construction costs and total updated project costs have yet to be finalised.
The document gave a project update about what has been spent, including capitalised project works, including design, contamination reports and fencing as well as fixed assets, as of the end of June.
But the total cost, including what was spent on the capitalised project works and fixed assets was redacted.
The document also highlighted concerns within Whakatāne District Council, including a 1XX News interview with Mayor Victor Luca.
Whakatāne District Council, along with Te Rāhui Lands Trust, Ngāti Awa Group Holdings and the Crown via Kānoa – Regional Economic Development & Investment Unit, are partners for the Boat Harbour project.
Mayor Luca told 1XX News in May it would be "impossible" for the Council to afford the cost increases "under the present environment we're dealing with, when we're struggling to find money to do basic stuff."
The document said Mayor Luca "indicated he had concerns about the ability of the project to safely dispose of the contaminated soil within existing budget and Whakatāne District Council being unable to afford the cost increases for the project."
Mayor Luca had requested a meeting with Regional Development Minister Shane Jones, but, according to the document, the meeting had yet to be arranged.
The document also revealed concerns from Whakatāne District Councillors about the increased costs, "given the council’s significant investment" in the project.
MBIE officials referenced a council annual survey showing that "the cost issues and significant delay in delivery of the harbour project have been identified as one of the main dissatisfaction areas" with council services and management by Whakatāne residents.
The harbour project received $19.6 million from the Provincial Growth Fund in March 2020, while Whakatāne District Council put in $9.8 million.
In June 2022, the project received fast-track resource consent under the COVID-19 Recovery Act 2020, provided there was a comprehensive site and soil management plan.
Then-Regional Development Minister Stuart turned the sod at the Keepa Road site in August 2022.
The project has been plagued by delays due to concerns about contaminated soil and the presence of polyfluoroalkyl substances (PFAS) on the site.
Stage one of the project involved the remediation of the Keepa Road land to enable subsequent earthworks and construction activities. However, the document noted that contaminants were found on the site, including "waste material from the Pinex sawmill and the Whakatāne Board Mill."
"The project has been significantly delayed by Bay of Plenty Regional Council (BOPRC) as it has required multiple revisions to the site and soil contaminant management plan," MBIE officials stated.
The Regional Council approved a revised site and soil contaminant management plan in June.
Regulatory services general manager Reuben Fraser said they were confident certifying the management plan would minimise the risk of discharges to the environment and to human health.
“We’ve also encouraged the consent holder to get a really good idea of what the total costs of the project are going to be and that they have the funding available to see it through,” Fraser said.
Fraser said a bond would be paid by the consent holder before excavation began.
The bond, Fraser said, was to ensure compliance with the consent, not for Regional Council to finish the work.
Council would not step in if the project falls over, Fraser told Councillors.
At the Bay of Plenty Regional Growth Summit on September 20th, Regional Development Minister Shane Jones was disappointed about the delays.
Jones wanted the project to go ahead and said pulling the plug is their last resort.
He said officials planned to meet with key stakeholders around the future of the decision before going to Cabinet for a final decision.
However, as of November 12, a meeting had yet to take place, according to a BOPRC Monitoring and Operations Committee agenda paper.
On October 6, the Government announced a list of 149 projects nationwide that had been shortlisted under the Fast-Track Approval Bill. Among these projects was one to establish multiple disposal sites for excavated material from the harbour site.
1XX News obtained a Cabinet paper under the Official Information Act that considered three possible landfill sites.
According to the paper, the first proposed site was at 1 Kope Drain Road and 44 Keepa Road, Whakatāne. The second was at 304 Tahuna Road, Te Teko, and the third at 1257 State Highway 2, Waimana.
At the November 12 Monitoring and Operations Committee meeting, Regional Councillors heard there was potential to place the soil within a containment site on the harbour land.
However, the Regional Council had yet to receive a resource consent application for placing additional contaminated soil within the harbour area, at that stage.
Fraser said they'll do its due diligence before Councillors make a final decision on any application.
Timeline
March 2020 - Boat Harbour project receives $19.6 million from Provincial Growth Fund with Whakatāne District Council putting in $9.8 million
January 2022 - Partnership formalised between Te Rāhui Lands Trust, Whakatāne District Council, Ngāti Awa Group Holdings and the Crown via Kānoa – Regional Economic Development & Investment Unit.
May 2024 - Whakatāne Mayor Victor Luca speaks to 1XX News about boat harbour delays
June 2024 - Bay of Plenty Regional Council approve revised soil contamination and management plan
September 2024 - Shane Jones slams project delays
October 2024 - Harbour site landfill project among 149 projects included in Fast-track Approvals Bill.