KiwiRail is facing an increase in cost to deliver its preferred option for the Interislander replacement project. Photo / KiwiRail
KiwiRail is facing an increase in cost to deliver its preferred option for the Interislander replacement project. Photo / KiwiRail
KiwiRail says there’s a funding shortfall for the Interislander replacement project, but the Government has given it options to ensure work can continue, BusinessDesk reports.
The state-owned rail and ferry operator previously costed the project, called iRex, at $1.45 billion, but as BusinessDesk has reported, the cost ofnew terminals at Wellington and Picton is understood to have increased significantly.
KiwiRail carried out an in-depth review of the project this year, including value engineering (or cost-cutting) options, and previously said it was in discussions with ministers about what to do about funding.
It provided additional details in its annual report released on Monday.
“A comprehensive review of the programme in 2023 identified an increase in the cost to construct the terminal infrastructure and a consequential shortfall in the funding needed to complete the programme in its preferred form,” the report said.
“The board has been in discussions with the group’s shareholder about options to address the cost increase and funding shortfall, and on September 19, 2023, the shareholder advised the board of funding options that will ensure the programme can continue.”
