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Low numbers, despite swing in some areas to privately funded recovery

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Fuseworks Media
Fuseworks Media

A total of 207 projects over $5.0 mill in individual value were reported as new, at tender & commencing for New Zealand in April and May 2011.

Analysed by ownership, 105 were privately funded and 96 lay in the public sector and 6 are Private/Government shared. Of the above total, there are 69 at the planning stage, 77 out to tender and 61 had reached the contract stage or are about to commence.

Of these 99 were located in Upper North Island (Taupo north), 54 in Lower North Island (below Taupo and including Gisborne) and 53 (not including earthquake damage) in South Island, plus 1 new covering more than one region.

The more noteworthy projects priced $5 mill+ are highlighted below:

PLANNING UPPER NORTH ISLAND

34 new projects. Of these 21 are government funded and 13 in the private sector.

Private Safari Group is constructing and refurbishing the former Anchor House at 80 London St, Hamilton.

The National Sports Academy at Mairangi Bay, Auckland is planning to increase the existing lodge accommodation.

Bay of Islands is wanting to reseal and upgrade the airport runway, lights & aprons.

The Pride Brewery (was Lion Nathan) is planning an expansion at its brewery in East Tamaki, Auckland.

Big Splash ? Rotorua is refurbishing its wildlife park. This will include an interactive children?s playground, reptile enclosure, water slide and 400-seat auditorium for free flight bird shows and interactive animal experiences.

Government The Ministry of Education National Office is continuing to evaluate the Request for Information to provision a managed network &/or managed services for ultra-fast broadband speeds of 100mbps or more to schools. $37.5 mill has been allocated to upgrade data & cabling infrastructure at 239 schools throughout New Zealand.

There are several projects moving ahead at West Harbour, Auckland that is within the NorSGA (Northern Strategic Growth Area) transport infrastructure plan. They are all at various stages of the construction process (land acquisition, design, resource consent, tendering and construction). NorSGA is a long term project which will roll out over 30 years in order to accommodate growing populations in West Auckland.

Hamilton City Council is considering a report for a proposed river hub in Hamilton. 85% of the local residents are in favour. This would promote cultural tourism and involve Tainui heavily as it involves creating a Maori Village on an existing island on the Waikato River featuring a jetty around Marlborough Place & the Ferrybank function centre to link with southern Victory St & Hood St entertainment areas.

LOWER NORTH ISLAND

Low numbers continue to plague the Lower North Island and Wellington area. In April there were only 3 projects (2 private, 1 government). In LNI during May there was a strong swing to a privately funded lead in the recovery process with 10 private and 3 government projects. Total numbers for the two months stand at private 12 and government 4.

Private Of the apartment type projects in Wellington - Sheridan Terrace, Johnsonville, have lodged a Resource Consent for a 32 unit townhouse/apartment development and in Victoria St and Taranaki St, Te Aro, resource consent has been granted for 2 new apartment buildings. At another project also in Taranaki St, Te Aro, there is on-going marketing for an 11 storey apartment building with 60 one & 2 bedroom apartments.

Retail and Hospitality are the sectors showing signs of movement with Farmers in Napier at Resource Consent to redevelop the former Odeon Theatre, Callinicos & AMP Buildings into a new store and amongst others Countdown in Tawa is also at Resource Consent stage for a new supermarket on a site known as Takapu Island.

Government In South Wairarapa the Council is hearing submissions for the development of effluent & disposal options.

Centreport Ltd, a private company owned by Greater Wellington and Horizons MW (Manawatu-Wanganui Regional Council) are planning repairs & replacement of parts of wharves at Hinemoa St & Waterloo Quay, Wellington - subject to business case outcomes.

SOUTH ISLAND Due to the on-going significant aftershocks ? projects in planning in Christchurch have been significantly affected and the actual planning of new buildings and repairs in the worst affected areas can only be tackled once the geological influences have settled and new earthquake resistant building parameters established as the Royal Commission of Enquiry re CBD building failures is underway.

Residents too are still awaiting release of land reports regarding their residential properties while large aftershocks are causing further damage and distress.

Thus it can be said that Christchurch is in waiting mode ? before a full assessment can be carried out to determine the fate of buildings, some to be repaired, others to be partially or completely demolished etc. An example of the uncertainty surrounding some buildings is that of the Canterbury Provincial Council Buildings at Durham St & Armagh St, Christchurch Central.

There was however 18 projects at planning stage (13 private and 5 government).

Private

Cubitt Consulting Ltd has lodged a Resource Consent to establish a new retirement village (Summerset Village) at Wakari, Dunedin.

Andrew Centre Ltd is involved with the typical quandary facing property owners within the Red Zone in Christchurch. Their property at 772 Colombo St, Christchurch Central was to be developed while incorporating part of the historic fa�ade of this heritage building but BNZ is now reconsidering its plans for leasehold interest in this site and both parties will need to reconsider their options.

Coca-Cola is planning a new bottling & filling plant at Port Hills Rd, Woolston, Christchurch. They will at the same time do earthquake damage repairs.

Mt Cook Alpine Salmon is planning to establish a new salmon processing plant in either Timaru or Oamaru, while NZ King Salmon Ltd is looking at establishing 7 new salmon farms in the Marlborough Sounds.

Electricity Ashburton are at early planning for new offices, warehousing & storage facilities in the Ashburton Business Estate.

Lion Brewery is planning to replace its lost brewing capacity in Christchurch by constructing a new brew house & upgrading cellars & kegging facilities in Dunedin.

Government

The Waitaki District Council, Gore District Council, Dunedin Council are at early planning for roading within their district.

The Ministry of Transport [WLG] has let a contract to Delloites for the provisioning of independent analysis of the national economic costs, benefits and financial viability of the potential development of a sea terminal at Clifford Bay, South of Blenheim.

Christchurch City Council has confirmed alliance agreements with 5 private contractors - Fletcher Construction Co Ltd [CHC]; City Care Ltd [CHC]; Downer NZ [CHC]; Fulton Hogan Ltd [Canterbury] and McConnell Dowell Constructors Ltd [AKL] - charged with rebuilding the city?s infrastructure following the series of earthquakes. The bill is estimated at $2.0 billion.

TENDERS

UPPER NORTH ISLAND 39 of which 17 private projects are at tender, there are 2 government/private collaborations and 20 publicly funded projects. These range from schools to wastewater, transport and roading, to 4 health projects at request for proposal, tender or tender awarded stage.

Of note is a tender that closed for a trans-Tasman submarine cable from Waiuku, New Zealand to Sydney, Australia able to carry a POP to POP network. Work is likely to start Oct 11 and expected to be ready for service Dec 12. This Optikor Trans Tasman Cable is being developed by Kordia Ltd [AKL].

LOWER NORTH ISLAND

14 private projects, 6 publicly funded projects, 4 public/private partnerships

Countdown Newtown is building on the old Bunnings site; New World is expanding in Newlands, Wellington; oil, mining, retail, offices, private schools & one apartment & a depot make up the balance.

While the current push to provide ultra-fast broadband and schools make up the majority of projects, there have also been a couple of hospital and police station projects.

SOUTH ISLAND 17 in total, of which 7 are privately funded and 10 government related.

The government projects during April were all related to the ultra-fast broadband initiative. Of the 4 private tenders - 2 were on mines. None were Earthquake related.

Some of the projects of note in May were:

Mine infrastructure works at Cypress Mine, Stockton and a refurbishment of the St Pats Dam are being put to tender by Solid Energy in Partnership with Stockton Alliance (Joint venture between Solid Energy & Downer EDI Mining NZ).

The St Pats Dam & Cypress Haul Road are also being put to tender by Solid Energy in partnership with Downer EDI Works Ltd.

Tenders have closed for an extension to the existing airforce museum at Harvard Avenue Wigram, Christchurch. No timing for work to start has been given.

In Addington, Christchurch ? building consent is to be lodged for a Retirement village. Tenders closed 11 April 11.

COMMENCEMENTS

UPPER NORTH ISLAND

26 projects in total, of which 14 are private and 12 public. Projects of note are: Private projects range from carpark, office, warehouse facilities, retirement village, geothermal power, shopping centres and an entertainment complex.

The publicly funded commencements are in education, wastewater projects, broadband initiatives, cycleway, police station and roads.

LOWER NORTH ISLAND

projects in total, of which 11 are private and 6 public. In April most commencing projects were government funded. 2 of note that are being developed by Wellington City Council are Regent Park Flats at Owen Str, Newtown, Wellington which involves the construction of newly built residential flats and an upgrade of 5 apartment buildings that make up Newtown Flats in Mansfield Rd, Newton, Wellington.

May saw private funding kicking in again with 7 projects commencing, ranging from retail to conference centres, apartments, large subdivisions and oil exploration.

SOUTH ISLAND

3 projects only in April but May saw an upward swing to 15 projects commencing of which 7 were private and 11 public. Portable homes as temporary accommodation in Canterbury following the series of earthquakes are being constructed. There are 4 builders and 1 contractor involved with this project.

Fonterra Co-operative Group Ltd has started work on a milk powder plant in Darfield that is expected to be operational by September 2012.

The other projects ranged from electricity substations and earthquake damage related projects to industrial, roads, airports, etc.

While there has been a swing in some areas to privately funded recovery, numbers generally stay low. While the month of May (8 months out from the first earthquake) saw commencements of projects in Christchurch pick up, the subsequent large aftershocks mean that a further lag may be anticipated. NZIER sums it up as follows: ?The Canterbury rebuild continues to be a central pillar of strong economic growth, particularly for construction. Continued aftershocks complicate the outlook with economists? views diverging on the scale and timing of reconstruction in the region.?

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