Minister for Health Dr Shane Reti and Minister for Infrastructure Chris Bishop said it was still too early to say whether the lead contractor would be chosen for the project.
It comes after their announcement that it would either downscale the new Dunedin hospital project, or retro-fit the present Dunedin Hospital — which was leaking yesterday due to the major rain event moving across the region.
The statement excited private healthcare firm Vital Healthcare’s fund manager Aaron Hockly, although he admitted that the project would be "too big" for their organisation.
"By breaking the project down into different stages and parts, this will also attract a greater number of parties wanting to be involved including more local ones.
"There are very few local construction companies for example who can undertake jobs of $1 billion or more, whereas there are lots more who build in the $30 million-$150m range."
Asked whether this statement meant that Australian contractor CPB was no longer in discussion, a spokeswoman for Dr Reti said "day to day" questions should be deferred to Health New Zealand Te Whatu Ora (HNZ).
HNZ chief infrastructure investment officer Jeremy Holman said it was "working urgently to develop options for new Dunedin hospital that can be achieved within the budget and deliver modern, fit-for-purpose health facilities that will enhance clinical safety and enable new models of care".
The Otago Daily Times was leaked documents which showed CPB’s initial pricing to HNZ at the end of July was significantly over budget.
New costings from the company were due to land on the government’s desk on September 16.
Former Labour Cabinet minister Pete Hodgson, who previously oversaw the construction of the new Dunedin hospital, said the minister’s statement was "further evidence of a government in a dither, and not quite understanding their own process".
"By saying we would be ‘looking at a lead contractor’ they infer that CPB’s early contractor involvement has come to a sticky end.
But almost certainly they meant to say they are ‘not ready to decide whether or not to confirm the lead contractor’. I would place money on CPB still working with other players to try to further reduce costs and increase certainty."
Earlier this week, the Otago Daily Times was told HNZ infrastructure lead Blake Lepper had been tasked with getting the project back under the latest $1.88 billion budget.
CPB has been contacted for comment.
