The Rotorua District Council looks set to spend another $3 million on a new high-tech plant for processing bio sludge from the city's wastewater.
The council's strategy, policy and finance committee this week recommended the council approve $3 million for the project's professional services contract, which had only been partiallyapproved. The project will see the new high-tech treatment plant using Terax technology developed by scientists from Crown Research Institute Scion.
The resolution follows a decision of the council earlier in the year to put the funding approval on hold while the business case and financial modelling was reviewed.
Council chief financial officer Dave Foster said the review work had now been undertaken by the council's finance team, including re-evaluation of cost estimates for all options.
He said Terax remained the most cost-effective option for achieving the council's objectives around sustainable disposal of sludge produced by the city's wastewater treatment plant, and compliance with stringent new environmental protection requirements.
The new Terax plant would efficiently treat and recycle the bio-solid waste stream from Rotorua's wastewater treatment plant, a problem that councils have been grappling with across New Zealand and internationally, he said.
The council has received a grant of $4.7 million for developing Terax technology from the Ministry for the Environment, of which $3.7 million is a contribution towards constructing the new demonstration plant.
The council has spent $1.3 million to date on the Terax project.
The plant is referred to as a "demonstration" facility as it will provide evidence that the new technology works effectively. It will allow Terax technology to be demonstrated to interested parties, such as other councils, under normal operating conditions.
