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.