Greymouth hospital cost overrun more than $20m

The cost of the new Greymouth Hospital is now almost $91 million, according to the Ministry of Health.

Te Nikau Grey Hospital was originally costed at $68.1 million, but that was later increased to $77.8 million.

The Ministry of Health is currently in a $31 million dispute with lead contractor Fletchers. The project is expected to be at least two years overdue.

Ministry deputy director-general Michelle Arrowsmith, responding to an Official Information Act request from the GreymouthStar, said that due to project delays and additional construction costs, the budget allocated had recently increased to $90.72 million.

The Government’s accounts show Fletcher initiated the case and mediation was held on September 17, with both parties unable to come to a resolution on disputed costs.

Ms Arrowsmith said the penalty for late completion was covered by liquidated damages within the contract between the ministry and Fletcher Construction. She declined to release it.

However, she did reveal what the Partnership Group — the outside committee appointed to lead the Greymouth construction project — were paid.

The group was appointed by the Minister of Health in January 2013. The highest paid is Cath Cooney, who since 2013 has received just over $110,000, including a stint as chairwoman. Next is Trevor Wilkinson on $44,500, then Clayton Cosgrove, who started in February 2018 and is the current chairman, on just over $19,000. The group has claimed close to $73,000 in travel expenses and fees of over $208,000.

The West Coast DHB says the soonest the move to the new hospital can happen is March or April.

In a report to the recent DHB meeting in Greymouth, chief executive David Meates said the handover date was still not known.

‘‘However, with the holiday period fast approaching, the potential date is now likely to be in 2020. Based on a building handover date in 2020, the DHB’s migration into the new facility would not occur until March-April 2020 . . .’’

The new administration block, being built by CYB, is on track for hand over to the DHB later this month.

Meanwhile, plans for a new health centre in Westport to replace Buller Hospital, are inching closer.

The DHB will shortly call for contractors for the demolition needed to start construction.