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Friday, May 6, 2011

Christchurch rebuild alliance tackles $2b project

Christchurch rebuild alliance tackles $2b project

PAUL MCBETH
Last updated 09:29 04/05/2011
 
The group of construction companies tapped to rebuild Christchurch city infrastructure damaged by the earthquakes is looking at more than $2 billion of work over the next five years.

An interim agreement was yesterday signed between Christchurch City Council, the Christchurch Earthquake Recovery Authority, New Zealand Transport Agency, Downer EDI, Fulton Hogan, Fletcher Building, McConnell Dowell Constructors and City Care.

They will rebuild roads, sewerage, water supply pipes and parks damaged by the September and February quakes, with details to be finalised over the coming four months. The council will be responsible for the central city plan.

"The alliance is expected to undertake works valued at more than $2 billion over five years," Downer chief executive Grant Fenn said in a statement. "Downer looks forward to working closely with the other members of the alliance to complete this important reconstruction work for the people of Christchurch."

The February quake killed more than 180 people and caused as much as $15 billion of damage, $9 billion of which was assumed to be on residential property with commercial property and public infrastructure assets costing $3 billion each.

The government has been forced to ramp up this year's debt programme in response to the temblor as it tries to front-load the cost of the quake which will likely push the cash deficit out to 9 per cent of gross domestic product in the 12 months ended June 30.

The alliance structure of the agreement means the client, consultants and contractors work together to hit target levels of quality, cost and time, with rewards and penalties in place if the work meets or misses the goals.

The NZTA used a similar structure successfully in the completion of the Manukau Harbour Crossing.

The alliance's contractors were appointed after the September 4 quake and have been working on emergency repairs since the second earthquake in February.

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