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East Rotoiti Sewerage Funding

27 May 2021

RLC has requested additional funding from Mfe (Ministry for Environment) to close the funding shortfall due to higher scheme costs compared to 2014 estimates. If this additional funding is approved, a Community meeting will be held to explain funding  and tender outcomes.


Further to our March update, RLC agreed to meet with us in late April and we were provided with a summary of the current position. This aligned with the submission documents to Rotorua Te Arawa Lakes Group that we subsequently obtained.



The tender evaluation exercise is complete and the preferred System and Main Contractor is now evident. That allowed Council to calculate the total scheme costs - actual Rotoma on-site installations, reticulation network, treatment plant and access road, and finally the onsite installations for East Rotoiti as per successful tender.



Council has identified a circa $10m funding shortfall, (document here), and as previously predicted, a funding submission has been submitted to Mfe. We have obtained the two funding submission documents from the agenda of the recent Rotorua Te Arawa Strategy Group meeting - links above. We strongly recommend that Members read these as they provide very interesting information about the scheme, and in particular the reasons for costs increases that have caused the funding shortfall.


If that request is successful, it will restore the original 50/50 contribution between local ratepayers, and from the Funding Deed.



If funding certainty is secured, the Infrastructure team will prepare the Contract Adoption recommendation (of Contractor and on-site system) to be submitted to the Finance and Strategy Committee of Council.



LRCA has consistently requested a community meeting for Council to explain its recommendation, the final cost per property, and installation timelines. Council has agreed and plans to arrange a community meeting before submission to the Council Committee. That may be in early June if the Mfe funding decision is received promptly.


If the Community and Council committee are in support, the recommendation will then be submitted to the full Council for approval.


Watch this space for further updates.