CPB is tasked with overseeing the nearly $2 billion new Dunedin hospital inpatients building project. It is estimated that this project will be ready by the end of 2031.
But Corrections has exercised its right to withdraw from negotiations with Cornerstone Infrastructure Partners (CIP) and, as a result, subcontractor CPB, for the expansion project at Waikeria Prison.
Corrections deputy chief executive for infrastructure and digital assets Alastair Turrell said it had now moved to a directly contracted, construction-only model to deliver the expansion, designed to deliver additional prison capacity at Waikeria.
‘‘We have retained some, and will look to retain other, key sub-contractors previously engaged by CIP and/or CPB to ensure early works continuity and stable delivery.
‘‘This model will help ensure any disruption to programme timeframes and local contractors, is kept to a minimum and will help with keeping costs down and necessary work under way.’’
Mr Turrell said the Waikeria expansion programme was a critical, long-term investment in the safety, security, and effectiveness of Corrections’ prison network, particularly in the North Island.
‘‘This decision was not taken lightly, but taken in the best interests of the programme and the site, and we remain committed to its successful delivery.
‘‘The programme team is working hard to ensure there are minimal interruptions to site works as they step through the transition to the new delivery model.’’
‘‘I guess there could be a question around whether they are reliant on having that additional work in the country in order to make their activity here in New Zealand viable.
‘‘And if that’s the case, then it could be of concern.
‘‘You wouldn’t want a company collapsing or pulling out partway through a project because they are no longer financially viable, leaving the kind of mess that was on the front page of the ODT this week with Stonewood Homes.’’
However, asked whether the developments would have any bearing on the new Dunedin hospital, former Labour health minister Pete Hodgson said ‘‘absolutely not’’.
‘‘This development does not affect the nature of the contract or relationship Health NZ has with CPB.
‘‘CPB is the main contractor for the new Dunedin hospital inpatient building, responsible for delivering the project. It is meeting all of its obligations with Health NZ and we are pleased with progress.
‘‘We have a positive and collaborative working relationship with CPB and are excited about delivering the Inpatient Building with them.’’
CPB declined to comment.
