Transpower $30m over budget on North Island upgrade
The state-owned national power grid operator says the work is now forecast to cost $894m.
BUSINESSDESK: Transpower New Zealand, the state-owned operator of the national power grid, has run $30 million over budget on its North Island grid upgrade, which is now forecast to cost $894m.
The increase is largely due to the cost of construction of the overhead transmission line and the acquisition of associated property rights, the company said.
The projected cost of $864m had been previously disclosed in the Wellington-based company's half-year report to December 31.
The upgrade involves the construction of a 186km 400 kV capable overhead transmission line from Whakamaru, north of Lake Taupo, to Pakuranga in east Auckland.
It is designed to provide a more secure and diverse power supply to the Auckland region.
In a separate Auckland project, Transpower is building a transmission ring around the city to reinforce the security of the power supply to Northland.
That project is forecast to come in below the set budget of $473m, the company's annual report in April said.
Hannah Lynch
Fri, 18 May 2012
Fri, 18 May 2012
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Transpower $30m over budget on North Island upgrade
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