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Budget increase for Central Interceptor Tunnel project

Central Interceptor Tunnel Budget

The budget for the Central Interceptor Tunnel project in New Zealand has increased due to high inflation resulting in increased labour and material costs.

Watercare’s original $1.2 billion budget to build a main tunnel, two links sewers and 16 shafts, was announced in 2018, with construction beginning in 2019.

Additional work has now been added to the scope, which has resulted in a revised budget of $1.319 billion.

Central Interceptor executive programme director Shayne Cunis said construction is progressing safely and efficiently across all 16 sites, with 72 per cent of work now completed.

Hiwa-i-te-Rangi our tunnel boring machine has broken through to a shaft in May Rd, Mt Roskill and is more than halfway on her 14.7km journey to central Auckland,” Cunis said.

“We’ve completed one link sewer and will finish the first drive for a second link sewer at the end of the month. Milestones are coming thick and fast.”

Cunis said the high inflation has been reflected within the revised budget.

“We absorbed the costs incurred through the COVID-19 pandemic and we had an allowance for inflation within the original budget, but the level of inflation that has been experienced, it became clear that these rising costs would exceed our budget allowance,” Cunis said.

“Additional funding will come from within our resources and not Auckland Council and will allow us to complete the project as planned at the end of 2026.”

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