Price of Taranaki's proposed new central landfill revealed
Digging a new hole to dump the region's rubbish comes with a hefty price tag for Taranaki's councils.
The new Central Landfill planned for Eltham, central Taranaki, is estimated to cost a whopping $42.9 million.
The figures have been released in a report to the New Plymouth District Council's (NPDC) performance committee which looks at an agreement between the South Taranaki, Stratford and New Plymouth district councils for the shared development, management and operation of the proposed site.
The new landfill has been developed as the solution to the Colson Rd landfill in New Plymouth which they are looking to close by June 2019 when it reaches capacity.
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Consultant MWH estimated the cost of the Central Landfill project in July 2015 based on the preliminary designs, including the costs incurred by the South Taranaki District Council (STDC) in purchasing the land and acquiring the necessary resource consents.
While the total cost is estimated at $42.9m, it's suggested the three district councils put forward enough capital for the first stage of development, estimated at $16.1m.
NPDC will shoulder 66.4 per cent of the cost and would be required to put $11m towards stage one.
As part of the NPDC Long Term Plan 2015-2025, the money would come from the council's Solid Waste Development Fund.
STDC would pay 27.1 per cent of the costs and Stratford District Council would make up the other 6.5 per cent.
"This effectively links the cost of development, risk taken and the initial capital investment of each council to their expected use of the new landfill," the report read.
On Thursday, the performance committee would be asked to consider giving NPDC chief executive Barbara McKerrow the authority to sign a Memorandum of Understanding with the other two councils and subsequent Joint Committee Agreement.
Once the councils signed on, the Central Landfill Joint Committee would be created and would comprise of one elected member from all three district councils.
The committee would determine the types of waste to be accepted at the Central Landfill, the annual budget, gate charges, forecasting the amount of rubbish coming in for each financial year, and determining the permanent closure date of the Central Landfill.
However, key decisions such as setting the gate charges and asked for more money if necessary would be referred back to the three district councils because they would have direct impact on councils' fees and charges.
It would be a "tight timeframe" to make the Central Landfill operational by the time Colson Rd closes in June 2019.
Work has started on the new entrance to the landfill, which would be built in the new year.