January Construction News
Te Waihanga’s Infrastructure Pipeline – in a nutshell
Developed in early 2019, the Infrastructure Pipeline aims to shine a light on big upcoming capital projects. It collates information relating to these projects including what stage they are in and displays them in one central location. The pipeline is then updated quarterly. Over time, all central government agencies, as well as most local government agencies, will be represented in the pipeline. Private sector projects will also be added in the future. By doing so, the government hopes to provide the construction industry with more certainty as to its potential future sources of work. This in turn will assist with long term planning as the market adjusts its capacity and capability to deliver in line with expectations. While there were already various infrastructure pipelines in place, they all related to a specific agency.
Announcing the pipeline in May 2019, Infrastructure Minister Shane Jones commented that “By shining a light on the big capital projects expected over a five-year horizon, the pipeline will not only give industry much needed certainty, but also help inform the Infrastructure Commission’s thinking as it develops a 30-year strategy to reverse New Zealand’s infrastructure deficit and maximise value for money from the Government’s $42 billion capital spending plan”.
However, while the pipeline does aim to paint a broad picture of what may be coming up, projects detailed may still need final approval from Cabinet, Ministers, or at board and executive level.
Notable projects currently in the pipeline include the Auckland Metro Rail Network Programme, the Interisland Ferry Replacement Project and the Waikeria Prison Build, all of which are valued at over $500 million.
Learn more about The Infrastructure Pipeline.
Govt’s $12b infrastructure spend: Rail, roads and DHBs the big winners
Jacinda Ardern has announced a $12 billion infrastructure fund largely targeting rail, roads and District Health Boards. $6.8 billion will be used for transport infrastructure in the six main growth regions including Auckland, Waikato, Bay of Plenty, Wellington, Canterbury and Queenstown. Auckland will receive the most funding with $3.4 billion. $300 million capital investment will also be put aside for heath including $83 million on child and mental health, $96 million on mental health and addiction, $26 million on regional and rural service projects and $75 million upgrading and fixing ageing hospital facilities. Additionally, up to $4.8 million will be available to schools to upgrade their facilities to run on clean power. Ardern said it was a once in a lifetime opportunity to invest in New Zealand to modernise infrastructure, prepare for climate change and help grow the economy.
Construction of $35m Auckland waterfront boundary extension begins
Construction to extend the waterfront boundary of downtown Auckland by 1800 square metres for a $35 million tree-covered ‘showpiece' public space has begun this week. When completed, an elevated ‘tidal shelf' will jut out over Waitematā Harbour from Quay St, suspended by piles rising several metres above water level. The space will have numerous pohutukawa groves, public seating, and a mussel rope system filtering dirty stormwater beneath the platform connected to the seabed. The project has also already won an award at the Resene New Institute of Landscape Architects in November 2019 in the Unbuilt Visionary Category.
Value of new residential and non-residential building activity continues to rise strongly
The value of building work being undertaken continues to rise, with Statistics NZ's September 2019 Quarter Survey of Building Work put in place recording $6.523 billion of new building work in the September quarter, up 4.7% compared to the June quarter and up 11.6% compared to the September quarter of 2018. The biggest increase was in Waikato where $604 million of new building work was commenced in Q3 2019, up 17.7% on the same quarter of 2018, followed by Wellington Region $532 million (+15.0%), Auckland $2.748 billion (+14.9%), while Canterbury recorded $947 million (+1.0%).
Base-isolated and Green star building to be developed for the BNZ HQ in Wellington
The Bank of New Zealand is to have a new earthquake-resilient and ‘green' 12-storey building as headquarters for its 1500 hundred staff in Wellington. BNZ Executive General Manager Technology and Operations, Russell Jones, said the building was one of the most seismically-advanced developments in New Zealand with a strong diagrid structure and base isolation, designed to avoid structural damage in a 1 in 500 year earthquake. Construction was expected to complete in mid to late 2022 with BNZ expected to occupy in 2023.
More buildings and construction projects set to open in Christchurch this year
$1.5 billion worth of construction projects are set to be finished in Christchurch this year. This includes two of the 12 anchor projects, namely the new Convention Centre ($475m) and the Christchurch Hospital Acute Services Building ($500m). The Christchurch Northern Corridor and Southern Motorway projects ($485m) are also likely to be finished this year and will largely reduce travel time across the city. Upcoming projects also include the $300m Metro sports facility due to open next year.
NZ’s first golf course retirement village under construction: $180m project by Metlifecare
Metlifecare has announced plans to build a retirement village on land bought from the Pakuranga Golf Club located in East Auckland Botany Downs. The total development area is 3.44ha and is estimated to cost $180 million. The village will include 200 independent and serviced apartments and a 40-bed hospital. Other investments within the area include 45 new apartments and a homestead model care home at Edgewater. A second retirement village, Pohutukawa Landing, is also under way in Beachlands.
Kaikōura_to get $11m injection for tourism and business opportunities
Kaikōura has received $11 million from the Provincial Growth fund to invest in the Kaikōura Marina Development Programme. This includes $9.88 million to begin the design and build of the Wakatu Quay. Development of the Wakatu Quay aims to revitalise the wharves to include dining, retail and local cultural elements. $1 million is also to be used to look into the potential development of South Bay Harbour and surrounding areas. Tourism is one of Kaikoura’s main industries and largest employers. The development programme is projected to create up to 50 new jobs and up to 100 indirect jobs in the wider region. Regional Economic Development Under-Secretary Fletcher Tabuteau said now is a great time to support tourism and business opportunities in the Kaikōura region following the devasting 2016 quake.
Hospital design under microscope
The government has approved $1billion-plus to build a new Dunedin Hospital. Christchurch firm Warren and Mahoney, who also built the new Canterbury DHB’s acute services building, have been awarded the major design contract. Partners in the contract include international health planning and architecture firm HDR and Dunedin architects McCoy Wixon. The new hospital will loom above historical buildings and will be the dominant central city structure. The involvement of a Dunedin firm will hopefully ensure the integrity of the city’s historic precinct is maintained.
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