The West Coast Regional Council says it has an understanding with the Government to extend the mid-2023 deadline for spending over $15.2 million of 'shovel ready' money for infrastructure projects.
The council currently has $22m allocated for various flood protection projects. Some have yet to start or are about to get underway.
The $22m total includes the cost of projects applied for via the Ministry of Business, Innovation and Employment (MBIE), based on council or ratepayers contributing a $5.9m share through loans or potential subsidies.
The council was first awarded $6.075m in 2020. This was tagged for three projects:
- A Hokitika flood and coastal erosion protection project,
- Improving the Mawhera Quay floodwall in Greymouth,
- The now completed flood warning system on the Buller River at Westport.
MBIE last year varied the agreement to incorporate stage one ($12m) of the proposed $24m Waiho (Waiau) River stopbank protection scheme at Franz Josef Glacier.
"This increased the total funding to be received to $15.293m," regional council chief executive Heather Mabin said in an earlier report.
Kanoa, an entity within MBIE, manages the 'shovel ready' money and oversees progress.
Mabin was reassured by Kanoa in August that the funding for council's four active projects was not in jeopardy, however no reassurance was given regarding the likely final decision for Franz Josef stage two.
Kanoa regularly visited and was working collaboratively with the council's new infrastructure programme manager Scott Hoare.
It had actively supported the council to identify "potential projects" that might require Government funding, Mabin said.
Infrastructure Governance Committee chairman Frank Dooley expressed concern at the June 30, 2023 expiry date for the current funding agreement.
"It seems quite short-term," Dooley said.
However, Hoare said the council was now moving all the projects forward.
"We are working through it. Some of this funding was allocated a long time ago and (some) hasn't always progressed. That is a risk."
Dooley asked if there was now any gap in the funding for the projects.
Hoare said it was a matter of aligning what had previously been planned with the allocated funds.
Councillor Andy Campbell said the $12m allocated for the northern protection work at Franz Josef seemed excessive.
"There's already a big wall there."
However Hoare said that it had to be raised "a lot more" and was justified because of river flood modelling.
He also pointed out the Franz stage one cost included improving the southern bank from the Waiho River Bridge down to Canavans Knob.
"Both of them have to be lifted."
This week, Mabin said Kanoa was "very supportive" of the council completely using the existing funding.
"We have an understanding with Kanoa that we will be applying for an extension of time and they are across that aspect. It's a collaborative approach to this situation to make sure those projects are (completed) ... we have made sure they are kept completely informed."
In May, the council was warned by a consultant that it risked losing the money unless it could reasonably reassure MBIE.
It also had to be able to demonstrate it could manage the future Westport protection scheme.
It prompted the council to form an Infrastructure Governance Committee, and to employ Hoare to take the lead.
Until then operations director Randal Beal had been overseeing all the various projects, before his sudden departure.
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