CORRECT: Transpower runs $30 million over budget on North Island upgrade
By Hannah Lynch
(Corrects originally project cost in second paragraph)
May 18 (BusinessDesk) - Transpower New Zealand, the state-owned operator of the national power grid, has run $30 million over budget on its North Island grid upgrade, which is now forecast to cost $894 million.
The increase is largely due to the cost of construction of the overhead transmission line and the acquisition of associated property rights, the company said in a statement. The projected cost of $864 million had been previously disclosed in the Wellington-based company's half year report to Dec. 31.
The upgrade involves the construction of a 186km 400 kV capable overhead transmission line from Whakamaru, north of Lake Taupo, to Pakuranga in east Auckland. It's designed to provide a more secure and diverse power supply to the Auckland region.
In a separate Auckland project, Transpower is building a transmission ring around the City to reinforce the security of the power supply through to Northland. That project is forecast to come in below the set budget of $473 million, according to the company's annual report in April.