Parakiore finally arrives after decade of costly delays

Parakiore is New Zealand’s largest indoor sport and aquatics facility at 3.2ha. It was delayed...
Parakiore is New Zealand’s largest indoor sport and aquatics facility at 3.2ha. It was delayed for nearly a decade and almost doubled in cost to an expected about $500m. Photo: CCC
Parakiore – the largest recreation and sports centre in New Zealand – will finally open on December 17. Reporter Dylan Smits explains the $500 million facility’s history of cost blowouts and nearly a decade in opening delays.

In 2012 the National Government revealed the Christchurch Central Recovery Plan, often called the blueprint, an ambitious proposal to reshape the central city after the earthquakes.

Among the so-called anchor projects was a world-class Metro Sports Facility bordered by St Asaph, Moorhouse and Antigua Sts.

It would replace the Canterbury Brewery building, which was demolished due to earthquake damage.

What was the target opening date provided? The first quarter of 2016.

After a series of projected cost blowouts, a doubling of the budget, and more than 13 years since the facility was announced, the public will be using the long-promised centre in just two weeks time.

The facility had an original budget of $246 million, with $147m from the city council and the rest provided by the Crown.

The city council contribution was capped with all additional funding to cover budget increases being met by the Crown.

A Crown Infrastructure Delivery (CID) spokesperson said in May this year Parakiore was expected to cost "around $500 million upon completion”.

CID was formed to deliver large infrastructure projects for the Christchurch rebuild on behalf of the Crown, but its role has since expanded nationwide.

When asked by The Star for a more specific and updated total cost for Parakiore and a cost breakdown, a CID spokesperson said the final cost of the project will not be finalised until mid-next year.

“As the final project costs are not known, further details about the project’s budget are withheld,” the spokesperson said.

The legacy of the other 16 anchor projects is mixed also.

Mostly successful projects included the Tūranga library, the Bus Interchange and Justice and Emergency Services Precinct.

While others, such as One New Zealand Stadium and Te Pae Convention Centre, faced years of delays.

Mayor Phil Mauger said “it’s certainly been a long road” for Parakiore.

"I know the whole team is thrilled to be preparing for the first event, and then opening the doors to the public.”

At 3.2ha, Parakiore is New Zealand’s largest indoor sport and aquatics facility.

It includes a 50m competition pool, dive pool, five hydroslides, a large aquatic leisure zone and a sensory aqua centre, designed for inclusive participation.

There are nine indoor courts, including a three‑court show court with retractable grandstands for spectators.

It also features fitness and movement studios, and a High Performance Sport New Zealand training base.

The hydroslide tower houses five slides, including the trapdoor Looping Rocket.

“It’s certainly been a long road, but I know the whole team is thrilled to be preparing for the first event, and then opening the doors to the public,” said Mauger.

Parakiore’s first delay was in June 2014.

A revised schedule in the anchor projects overview pushed the completion date out to the end of 2017.

The delay received little public blow back at the time.

In May 2015, the first big delay also came with little fanfare, with Ōtākaro Ltd, CID’s predecessor, stating the project would likely not be completed until 2020.

The ambitious scale of the project and there being no selected contractor were the main reported reasons for the more than two year delay.

Photo: CCC
Photo: CCC
However, progress was being made with major design work and site preparation was well under way.

Then much worse news arrived for the new Labour Government in November 2017, with Ōtākaro Ltd reporting a budget blowout of $75m more than the project’s $246m budget. This brought the total cost to about $321m.

Ōtākaro Ltd has since become Crown Infrastructure Delivery Ltd and expanded into national projects beyond its original role in the city’s rebuild.

The cost overrun stemmed from a revised price by the preferred contractor, Leighs Cockram Joint Venture, after a more detailed budget was produced.

Potential budget overruns, such as a more difficult than expected ground remediation, also needed to be covered, the contractor said.

As a result, the arrangement with Leighs Cockram was cancelled by Greater Christchurch Regeneration Minister Megan Woods and the opening was delayed again until the first quarter of 2021.

"I am announcing that the early contractor involvement will be cancelled, and I have instructed officials to undertake urgent work to get this project back on track,” Woods said at the time.

Ōtākaro Ltd took back control of the detailed design and a “build only” contract was planned with the Crown having a more hands-on role in the project.

Woods said the project re-work would deliver about $50m in savings which would have in theory brought the budget down to about $271m.

The combination of the cost blowout and further delay harmed confidence in the project.

Throughout 2018 and 2019, the project appeared mostly back on track with a $221m build contract awarded to CPB contractors and early construction starting.

However, the build contract does not represent the total budget cost, which would remain unclear throughout the Covid pandemic.

Just as significant momentum was building and construction was under way, the pandemic caused major labour and supply issues.

CID pushed back the expected opening date to early 2023 in November 2021.

In June 2022, the project’s cost blowout once again became clear to the public with CID confirming the total budget was now $317m, a $71m increase from the original cost and seemingly higher than the Government had hoped for from its rework.

The official name Parakiore Recreation and Sport Centre was given to it by Christchurch rūnanga Te Ngāi Tūāhuriri in April 2021.

Parakiore was the youngest son of Tūrākautahi, the Ngāi Tahu chief of Kaiapoi Pa.

He is described as a man of great strength and amazing speed as a runner, fitting the themes of the sports facility.

Construction ramped up again following the pandemic until perhaps the project’s largest crisis occurred in September 2022. CPB controversially lodged a claim with CID for an additional $212m – on top of the established $221m contract – to complete the build.

The contractor cited Covid-19 impacts, poor ground conditions and design issues.

It was just the start of a contentious legal battle between CPB and the Crown.

By September 2023, CPB increased its additional cost claim even further from $212m to $439.4m and stated construction would not finish until May this year – another delay.

This would have pushed out the total contract value to $696m if accepted by the Crown.

"We continue to reject the excessive and unsubstantiated claim on both entitlement and amount,” a CID spokesperson said at the time.

Construction was 70% completed in October this year and CID’s court action against CPB was successful, with the High Court preventing the contractor from halting work.

CID stated the completion date goal was late 2024 but acknowledged the legal dispute with the contractor made it unlikely. 

The pace of construction slowed and in November 2023 the total project cost was $365m, $119m more than the original budget and not including CPB’s far higher additional cost claims.

Photo: CCC
Photo: CCC
CPB had filed to appeal the High Court’s decision ordering works to continue, but dropped the appeal in March last year.

Then in May, CID published a project update, giving a delayed completion date of July this year, citing ground issues, poor contractor performance and the legal dispute as the causes.

A CID spokesperson said Parakiore was expected to cost "around $500 million upon completion” in May this year.

This was less than CPB’s claimed $696m for its contract but still more than double the original $246m budget.

An end to the fraught construction period was in sight however, and construction was completed in October.

Parakiore was officially handed over from the Crown to the city council on October 31, which completed the fit-out and now takes on the operator role.

The centre’s first official event, the Special Olympics’ National Summer Games, will be held before doors open to the public. 

The games, which are held every four years, will run from December 10 to 14 in the city. It is the pinnacle event for athletes with an intellectual disability in New Zealand.