A review of the New Plymouth Airport terminal project has found it went more than $4 million over budget and cost more than three times the amount first mooted for an upgrade at the council-owned facility.
New Plymouth's Airport terminal project is estimated to be costing $33 million. Photo: New Plymouth District Council / Supplied
The award-winning terminal was meant to cost between $21.7 million and $28.7m, but a review by former airport chief executive Wayne Wootton estimated it actually cost $33 million.
When an upgrade of the existing terminal was first proposed in 2014 it was meant to cost $9m, a budget that soon grew to $13.5m when seismic considerations were included.
The first plans for a replacement terminal in 2016 had a budget of $19.3m.
The council opted to future-proof the facility with a design suitable for two major airlines, built with sustainability values in mind and incorporating the cultural narrative of the Puketapu hapū upon whose rohe the airport sits.
Jetstar, which used to operate at New Plymouth Airport, has since pulled out of the city.
The review found the expanded scope of the project including car parking and infrastructure costs were behind the budget blow out.
Wootton said when work began in 2017 "it soon became apparent the existing underground services were in worse condition than originally thought and it was decided to renew these services while ground works continued".
A decision was also taken to construct a new exit and entrance to the car park and build new internal roading.
"The upper limit budget for the project was $28.7 million and within this total was a small contingency which, in hindsight, was not sufficient for a project of this magnitude," Wootton said.
"Further as the project proceeded, other capital works were added such as the renewal of existing underground services, car park and roading improvements which were all lumped together under the banner of the redevelopment of the terminal and linked to the main contractor's construction costs.
"When taking these additional projects into consideration the total spend on the airport redevelopment is estimated at circa $33 million."
Photo: RNZ / Robin Martin
New Plymouth Mayor Neil Holdom said ultimately the council was responsible for the budget blow out.
He admitted mistakes had been made.
"When they developed the terminal build proposal they were focused on the terminal itself. The actual building of the airport.
"Whereas what's become quite clear is that there were enabling works required to resovle things like power, water, carparking and roading.
Neil Holdom Photo: RNZ / Robin Martin
"They might not be part of the building but they are actually critical to the success of the overall airport and they really should've been taken into consideration in the intial design and budget."
Holdom did not want to point the finger at any individuals for the failure.
"They certainly missed some things and ultimately when you look at why we've brought this report to council it's to ensure that we learn from these large one-off projects and make sure in any future projects the same sort of we don't make the same sort of mistakes.
"Ultimately council is responsible for the operation of its Council Controlled Companies (CCOs) and so responsibility ultimately falls on us, the enitity that devised this project."
Holdom said the council did not have to commission the report but wanted to.
"I just have the view you publish everything and you show what you've learned from it."
Wootton said construction of the actual terminal itself was delivered "more or less on time and only 1 per cent over budget".
He noted that since opening the terminal had won awards in architectural circles and would be submitted for more.
"What has been produced over the past four years has differentiated New Plymouth Airport not only from other airports in New Zealand but also internationally and this unique building is certain to become an iconic structure in the future.
Wootton said a key factor in the delivery of the new terminal had been the involvement of the Puketapu hapu right from the initial concept stages.
"This has seen a new chapter in a collaborative approach with iwi, which will continue with upcoming works at the airport and it is hoped will pave the way for future district wide projects."
Holdom said the airport itself was something the region could be proud of.
"The airport project needed to happen. It's a good investment. It's a strategic asset for the region and the works that have been undertaken outside the terminal have added to an overall quality outcome that is going to serve the people of Taranaki well for decades to come."