As well as affecting staff and students, any delays could have a major impact on Dunedin’s economy.
The university, which suffered a serious financial blow because of Covid-19, has projects worth $180 million in the pipeline in Dunedin and a $170 million health science development planned for Christchurch, all at risk of significant delays without government shovel-ready funding.
The Dunedin-based projects include Te Rangi Hiroa, a 450-bed residential college (at least $90million) on the corner of Albany and Forth Sts to replace the hall now on the hospital site, the refurbishment and seismic strengthening of the consumer & applied sciences and Gregory Buildings on the Dunedin campus (at least $30million), and the refurbishment and extension of the physical education facility (at least $25million).
The fifth project was a reconfiguration and refurbishment of spaces within the university’s Wellington School of Medicine ($10million).
The projects were expected to support more than 500 jobs.
University chief operating officer Stephen Willis said while he still had his fingers crossed the funding would be approved, "it’s not looking great".
The projects all made it through to the final funding round, but it had been radio silence since then.
The last time the university heard from the Government about the projects was May 21.
It was asking for about a third of the total cost of the projects, which was about $300million.
"Without shovel-ready funding for us, the vast majority of our projects that we were planning to start some form of construction in 2021 are all going to be paused and deferred," Mr Willis said.
"If we defer projects now, by the time we can afford them again, that could be in three or four years. That will be when the hospital’s going."
Trying to build at the same time as the new Dunedin Hospital was not feasible, so projects could end up delayed up to 10 years.
That would have implications for courses being able to run.
It would also have a "profound impact" on the local building sector and associated industries.
"Without the ongoing support of the university’s capital programme, we anticipate serious challenges may emerge around the solvency and capability of a wide range of South Island-based contractors, subcontractors, consultants and the broader construction supply chain."
The pre-Covid 2020-32 capital plan for the university was to deliver $1.047billion of direct capital expenditure, he said.
That would have generated $2.1billion in additional output to the New Zealand economy, as well as potentially generating an additional 7063 full-time roles throughout New Zealand.
Any delays in the five projects could push back the university’s entire work plan, which included a $250million health sciences project.
That project was a placeholder for now, and work had been ongoing as part of health precinct master planning, he said.
"The campus master plan never assumed the hospital would move locations.
"Obviously that’s a 10-year-old plan. Things have significantly changed in those 10 years."
The projects were being driven by things such as health and safety, deferred maintenance, and the need for teaching spaces to be fit for purpose, he said.
The uncertainty around funding was also frustrating, he said.
"We can’t move on and make decisions about it, because we’re still hoping and holding, whereas if we just knew we weren’t successful we could just move on and start pausing projects.
"It’s just not helpful sitting in limbo."
In a statement, Minister of Finance Grant Robertson said about 1900 bids for the infrastructure funding were received.
It was a very competitive process, with only 150 projects able to be funded, he said.
For Dunedin, that included $28million to support Otago Polytechnic’s training centre, which will generate 200 jobs during construction.
Planned projects
•University of Otago shovel-ready projects
•Te Rangi Hiroa, a 450-bed residential college ($90m+)
•Food Science refurbishment and seismic strengthening ($30m+)
•Physical Education refurbishment and extension ($25m+)
•University Christchurch campus ($170m+)
•University Wellington campus ($10m)
Comments
Since the university is more focused on being s property developer (i.e the $3m build at jacks point as an acedemics retreat) rather than focusing on being an educator, maybe its time they start paying rates to council like the rest of us...
U of Otago might do better to concentrate on its staff and their welfare. Covid has done to the building programme what no end of objections from sacked staff could do over the last three years. Cut back on bricks and flash exteriors and support good teachers and administrators. This is an educational institution not a business.