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Roading project leads to $63 million blowout

Press Release

New Zealand Labour Party

21 July 1999

"New Zealand's largest roading project is heading for a $63
million blow-out in cost," Labour MP Mark Gosche said today.

"The Albany-Puhoi project (ALPURT) was originally costed at $165
million in 1995 but the current estimate stands at $228 million.

"This is an extraordinary increase in cost even taking into account
the additional lanes that are being added."

Mark Gosche said in light of the revelation, the Government should
speed up its review of road funding body Transfund's performance
on this and other projects.

"Already an investigation of eight large projects showed an average
26 percent over-run on budgets and scoping studies carried out
by Boston Consulting Group and Sinclair Knight Merz have already
identified possible savings of between $17m and $30m.

"These sorts of cost over-runs are just not acceptable.

"The Minister of Transport has enough evidence to make him act
now to manage taxpayers' money properly, Mark Gosche said.

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