ACT Party claims Puhoi to Warkworth motorway could have been open by Christmas if Waka Kotahi didn't drag the chain

But Waka Kotahi says "physical works have not been completed by the contractor".
But Waka Kotahi says "physical works have not been completed by the contractor". Photo credit: Newshub

The ACT party says the Puhoi to Warkworth motorway could have been open by Christmas if the NZ Transport Agency Waka Kotahi hadn't dragged the chain.

ACT's Simon Court said the delay is helping Waka Kotahi accumulate penalty payments from the contractors but the transport agency said it's simpler than that - claiming there's no way the road could physically be ready.

"Motorists have been waiting decades for this road to open it's a much safer road than the existing road," Court said. "Waka Kotahi should be doing [what] they can to get this road open for Christmas."

ACT Party claims Puhoi to Warkworth motorway could have been open by Christmas if Waka Kotahi didn't drag the chain

The new road's supposed to shave 11 minutes off the route heading north on the so-called holiday highway and making notoriously dangerous stretches safer.

The $877 million project was awarded six years ago and it's now past the deadline, meaning the contractors are paying what is called "liquidated damages" every day of the overrun. 

"I would assume that Waka Kotahi is concerned about the contractual outcome," Court said. "In other words, how much is Waka Kotahi going to have to pay for the road and how much can they pay the contractor out essentially to reduce the overall price?"

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Waka Kotahi claims back nearly a quarter of a million dollars from the contractors every day it goes past last July's deadline. That's $8 million a month.

At the same time, the contractors are claiming $250 million in compensation for COVID-19 lockdown-induced delays, slowing the project.

That's all likely to go to arbitration but Newshub understands it'll take until July for the road to be completed. 

"The contractor has every incentive to get the road open. Otherwise, they're paying for these liquidated damages. 

"Waka Kotahi has every incentive financially to stop them opening the road," Court told Newshub. 

But what's important is every day the delays roll on there's a risk to motorists. There've been six fatalities on the existing stretch of road in the past five years, Court said.

Sources have told Newshub Waka Kotahi was approached in November with a view to having traffic on the road in three weeks, for example by Christmas, but Waka Kotahi said no.

The Transport Minister and Fletchers, which is leading the project alongside the Spanish group Acciona, declined to comment.  

But, for its part, Waka Kotahi said someone's having Newshub on. The agency said it wants to see this road open as soon as possible. 

In a statement, Waka Kotahi said the road isn't open for the simple reason that "physical works have not been completed by the contractor".

Waka Kotahi said there is a range of tests that will need to be completed before the road can be opened to traffic.

Either way, it's a delay at a time when holidaymakers could use it the most.