Troubled pool development faces more delays and another cost increase

Wednesday, 26 July 2023

Work progresses on Christchurch's Parakiore Recreation and Sport Centre, which will now cost $365m - a 15% increase on the previous $317m budget.

Christchurch’s troubled anchor project Parakiore recreation and sport centre has been beset by yet another delay and cost blow out.

The centre is now expected to cost $365 million to build, up from $317m - a 15% increase, which will mostly be covered by the Government.

Covid-19, inflation and increased insurance costs are being held to blame.

Its completion date has also been pushed out to mid-December 2024 and with an opening date likely in 2025 - seven years since work started in 2018.

The facility, which will have a 10-lane, 50m pool with 1000 seats for spectators, a diving pool, five hydroslides, and several indoor courts for various sports, was initially set to be completed in late 2021 and cost $301m.

The Parakiore recreation and sports centre will now cost $365m to complete, up from the original $301m.

The completion date has repeatedly been pushed back and earlier this year Crown rebuild company Rau Paenga Ltd (formerly Ōtākaro Ltd), which is managing the construction, said it would be finished in spring 2024 with a public opening in early 2025.

Rau Paenga Ltd acting chief executive John O’Hagan this week said contractor CPB had shifted the forecast completion date to mid-December 2024.

In a stark contrast, the city’s final anchor project, the $683m stadium Te Kaha, is on time and on budget. The Christchurch City Council-led development is expected to open in April 2026.

O’Hagan said it was reported during the initial stages of the Covid-19 response that additional funding would be needed from the Crown to cover the costs associated with stopping work on the Parakiore site, as well as inflation and insurance costs.

The Parakiore recreation and sports centre is now not expected to be completed until mid-December 2024.

Rau Paenga also had to pay another $6m for the disposal of additional contaminated soil from the site, O’Hagan said.

The project, on the corner of Moorhouse Ave and Antigua St, has been beset with problems and delays.

An area on the southern edge of the site sunk by an average of 90cm after a dewatering well malfunctioned and sucked out soil and sand from underground.

Late last year, the Australian contractor building the centre, CPB Contractors, made six claims for an extra $212m to deliver the project. The Government is disputing the claim.

Rau Paenga general counsel and company secretary Sam Jack this week said he appreciated there was interest in the dispute, but Rau Paenga could not comment further.

The building site for Christchurch’s new stadium, Te Kaha, is a tad water-logged following this weekend’s rain.

Earlier this year, Benmax NZ, the company working on mechanical systems like air conditioning for the building, went into liquidation.

O’Hagan said a replacement mechanical services provider was quickly secured and the change did not have a significant impact on the construction timeline.

The city council was providing $148m toward the project, which had always been capped.

O’Hagan said the council was also providing an additional $1.2m for the fit-out of spaces like the aquatic sensory experience, a multi-sensory space that could be used by people with disabilities.

Work is on track and on budget at the Te Kaha indoor stadium in Christchurch’s central city.

Across the other side of the central city at Te Kaha remained on time and budget, despite a good portion of the site being covered in water on Monday following a weekend of rain.

Local residents renamed the site Lake Te Kaha.

However, Te Kaha Project Delivery chief executive David Kennedy said the rain had not caused any delays to the project that were not already taken into account when the schedule was developed.

Te Kaha stadium is due to open in April 2026.

He said the water would drain to the sediment basin on the site for treatment and would likely be reused for dust suppression.

Vertical construction was progressing well, with the concrete columns and walls being poured and unboxed. The wall work now extended well along the southern stand and up the eastern stand.

The steel construction of the western stand bowl superstructure began in June and would continue until early 2024.

The steel construction for the southern stand began last week and would continue until early 2024.

Weather permitting, the final major concrete pour for the arena’s foundations would take place on the northern stand early next week, Kennedy said.

The council had to bring forward $64.8m worth of stadium funding into this financial year because the work was progressing so well.

About 140 contractors and sub-contractors were working on site. This was expected to rise to more than 400 at the project’s peak next year.

The stadium, which will be able to hold 36,000 fans for big concerts and events and up to 30,000 people for sports matches, is expected to open in April 2026.