Sewerage Scheme Completion Status

12 December 2025

East Rotoiti - Rotoma Sewerage Scheme Update December 25

Scheme 87% Complete

Current Status of Scheme Completion as at 30 September 2025 (as advised by RLC):

No new installations have occurred since the January 2025 update. Numbers remain as East Rotoiti 347; Rotomā 213. Total projected cost estimate of $56.2million is unchanged.

The number of existing private properties without units installed and reasons why these installations haven’t taken place is detailed below.

Legal Handover: Rotoiti = 15, Rotomā = 3 - Owners have refused connection. Legal enforcement is underway via RLC and BoPRC
OSET = 4 - Owners wish to retain existing OSET systems. Referred to Haumingi 9B3B Trustees for review.
Māori Land Court = 30 - Complex ownership issues delaying installation. Resolution depends on judicial processes.
Pending Install = 16 - Awaiting sufficient participation to proceed cost-effectively.
RLC to finalise = 9 - Issues include tracing owners, property sales, and ongoing dialogue.
Marae = 6 - Marae's Design work is currently underway with Iwi to identify the system configuration required to accommodate Marae ‘super events.’

Progress Review

The dust has abated after the intense submissions and deliberations last year resulted in additional subsidies being approved to reduce the capital cost per property. Notwithstanding, the lump sum of ≈$22,500 (or yearly repayment of $1,790 over 25 years) plus the annual operating charge of $930 remains extremely challenging for many homeowners and whānau in the community.

LRCA has continued to seek updates from RLC in respect of the outstanding installations. Council’s latest response (see accompanying table) acknowledges that there has been little change to the situation over the year to date with various issues surrounding these properties remaining unresolved.

The long-awaited independent review of management and cost overruns commissioned by Ministry for Environment and conducted by consultancy group Cuesko was publicly released in July 2025 (available on LRCA website).

The report noted that the project ran over a period of 17 years and concluded that a combination of poor initial estimates, poor project cost management, cultural planning failures, and extended timelines without funding adjustments led to cost increases of >50% over the original budget.

In January 2019 RLC had a total budget of $35.3m versus final budget of $56.2m. The East Rotoiti allocation was just $10.9m of this budget!

In a joint response, Rotorua Te Arawa Lakes Strategy Group members (Rotorua Lakes Council, Bay of Plenty Regional Council, and Te Arawa Lakes Trust) noted that while the cost overrun was substantial, the review confirmed proper approval processes were followed and no misconduct occurred. However, they state that the experience has been used to implement comprehensive reforms aimed to prevent similar cost overruns in future collaborative infrastructure projects while ensuring proper cultural consultation from the beginning.

A request on behalf of property owners had been lodged with the Ombudsman to investigate the processes undertaken by Council which led to the extensive budget blow out. Disappointingly, the office declined to proceed citing insufficient evidence and limited options available to review Council activities and decisions.

All of which provides little comfort to scheme property owners who are left having to foot the bill, and with no expectation of further relief in sight.