Wellington Gateway Partnership suing NZTA for millions over delays to Transmission Gully

Friday, 11 October 2019

The $850m Transmission Gully project is unlikely to open on time

The contractor for Wellington's Transmission Gully motorway project is seeking $352 million from the New Zealand Transport Agency over delays to the project.

NZTA confirmed it had received a claim from HEB Construction, the sub-contracted builder for the Wellington Gateway Partnership (WGP), over delays to the 27-kilometre highway scheduled to open next year.

The claim would increase the cost of the project from an estimated $850m to almost $1.2 billion.

The 27-kilometre Tranmission Gully motorway north of Wellington is scheduled to open next year. (File photo)

It's been reported the claim was lodged in February and was noted as a contingent liability in NZTA's second-quarter report.

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However, the agency assumed there was 'no liability in relation to this claim' and said the project was on time and on budget.

The four-lane Transmission Gully motorway will connect Linden in north Wellington to Paekākāriki on the Kāpiti Coast.

On Friday a spokesperson for the agency said it had received a claim over the delivery of the Transmission Gully project.

Claims were not unusual on projects of such size, scale and complexity, they said.

'The New Zealand Transport Agency disputes the claim, and is working to resolve the issue in accordance with the terms of the contract agreed between WGP and NZTA in 2014.

'No further comment on the claim will be provided while this process is ongoing.'

Construction was continuing while the claim was resolved, the spokesperson said.

Wellington Gateway Partnership won the contract to design and build the motorway and maintain it for 25 years.

The joint venture consists of Cimic Group's public private partnership unit Pacific Partnerships, Accident Compensation Corp's investment arm, and global investment manager InfraRed Capital Partners.