Crown Infrastructure Delivery (CID), a company being mandated to help agencies struggling to deliver infrastructure, has been roped in by Te Whatu Ora Health New Zealand (HNZ) to help lead the in-patient building’s delivery.
It is understood from multiple sources that HNZ’s programme director for the project, Tony Lloyd, is now out of the role he has held for more than two years, but still employed at the agency.
Mr Hodgson said HNZ "don’t know how to trust anybody and don’t value continuity. They think that by reorganising the deckchairs on the Titanic that they will miss the iceberg and avoid disaster.
"It’s an absurdity. You cannot build a hospital by continuing to swap out top people."
Mr Lloyd’s experience included working on the now-opened acute services building at Christchurch Hospital.
Mr Hodgson had previously expressed a hope that HNZ was improving its capacity to lead building projects by establishing its internal infrastructure and investment group.
However, Infrastructure Minister Chris Bishop announced in August that CID, a Crown-owned company, would get an expanded role in December to help agencies with "low infrastructure delivery capabilities".
CID chief executive John O’Hagan said the size and complexity of the Dunedin in-patient building "requires mature project management, assurance and project controls. Health New Zealand has recognised the project would benefit from the support of CID."
CID has never led a hospital build nor managed a project of the scale of the Dunedin hospital. However, a CID spokesperson said it "has had a lot of experience with contracts and contractors".
The company was providing "similar support" for other projects including a Wellington science centre.
Mr Bishop and Health Minister Dr Shane Reti announced in September that the in-patient building would be built for a budget of $1.9b but would be smaller than planned or a refurbishment of the existing ward block. The latter option had been ruled out previously as impractical and costly.
HNZ’s head of infrastructure delivery Blake Lepper said that his agency had "looked closely" at how the Dunedin hospital project was managed "and is of the view that a different approach is needed as we enter the next phase".
Mr Lepper said a letter of intent had been signed with CID to "support us with finalising our options analysis for the in-patient building. Bringing in the commercial support of an infrastructure agency specialising in complex projects will provide new expertise and knowledge to support us in the next stage of the build.
"CID will undertake due diligence over the coming weeks, and we will then look to sign a delivery agreement with CID to move forward with the agreed option."
Mr Lepper said the changed approach would not impact the timing of the announcement of the "preferred option" for the in-patient building, expected next month, and HNZ would continue to "own, lead and be accountable for the project’s delivery".
CID was originally set up to oversee delivery of post-quake infrastructure for Christchurch, at a cost of about $1bn. Christchurch builds have included a $450m convention centre and the unfinished Parakiore sports centre.
The sports centre is being built by Australian construction giant CPB, which has also been paid by HNZ to undertake an initial planning of the Dunedin in-patient building in partnership with sub-contractors, with an expectation they would then be contracted to build it.
In response to a question about Mr Lloyd’s job, Mr Lepper said it was "not appropriate" for him to comment on roles. Mr Lloyd also said he was unable to comment.
