A relief package for the floodprone Central Otago town of Alexandra was boosted to more than $21 million by the Government yesterday.
The package includes $13.6 million towards building floodwall protection that was agreed to last week, as well as further contributions agreed to by the Government in cabinet.
The further
contributions are intended to pay for landscaping, roading and amenity enhancement.
It will also be used for the restoration of facilities such as the local swimming pool, which was badly damaged by flooding.
It also includes an extra $2.5 million to cover contingency risks and "some other costs."
Overall the package is worth $21.58 million including GST, although some parts are tax exempt.
Excluding GST, the package is worth $19.556 million.
The package was announced by Deputy Prime Minister Jim Anderton, Civil Defence Minister George Hawkins and Energy Minister Pete Hodgson.
"The purpose of this compensation package is to ensure the protection of the community of Alexandra," they said.
The ministers expressed confidence that the package would offer "real protection" to Alexandra from the risk of flooding.
The compensation was approved after examination of a Government commissioned report by Clutha Solutions coordinator Alex Adams.
The report blamed flooding on silting in the Clutha River that occurred after Roxburgh dam was built by the New Zealand Electricity Department in the 1950s.
Present dam owner Contact Energy has agreed to pay half of the $13.6 million towards building floodwall protection.
- NZPA
