Hon Gerry Brownlee
Minister of Energy and Resources

12 February 2009 Media Statement

National Grid Upgrade

An accelerated work programme on the national electricity grid has been welcomed by the Energy and Resources Minister Gerry Brownlee.

Transpower announced today a $50 million programme of work on the national transmission system.

Contracts to work on upgrading the national electricity grid will be offered as soon as April of this year, “ said Mr Brownlee.

The project involves bringing forward required maintenance work on the high voltage power pylons that otherwise would have been progressively worked on over the next ten years.

“I would like to thank Transpower for its flexibility in bringing forward this infrastructure work programme after discussions with the government,”said Mr Brownlee.

“From as early as April of this year this work will be contracted out. It’ll include essential civil type work, everything from strengthening the tower foundations, tower repainting, and substation work.

“Not only is it important work for maintaining the transmission network, but it has relatively high labour and New Zealand material costs. Much of the work is going to be contracted out to regional contractors and employers - valuable work at the time an economic slowdown,” he said.

"A further $50 million of infrastructure work on the grid involving conductor upgrading is also planned pending regulatory approval," said Mr Brownlee.

ENDS

Backgrounder: Transpower grid upgrade.

The objective has been to “bring forward” essential grid strengthening work that would otherwise be done over the next ten years or so.

The work has relatively high labour and New Zealand material content.

Today’s 50 million dollar announcement covers stage one.

Stage one:

• Tower strengthening, including strengthening of the foundations.

• Painting and maintenance of the towers.

• Improvements of access tracks and civil works on substations.

• The work is to be performed on the grid nationwide.

The contracts for the work are being offered from April and some work is expected to start immediately.

The contracts are likely to be let to firms based in respective.
Regions.

Commerce Commission approval is required.

Stage two:

An additional 50 million dollars of work is also planned on the national grid.

This work involves upgrading the insulators on the towers.

It has a longer lead time before work can start and will require regulatory approval from the Electricity Commission.

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