First Tunnel Contract Let

Press, Volume CVI, Issue 31318, 14 March 1967, Page 3

First Tunnel Contract Let

(New Zealand Press Association) WELLINGTON, March 13. The Minister of Works (Mr Allen) announced today that the Cabinet has approved the letting of No. 1 tunnel contract on the Tongariro power development to Codelfa-Cogefar (N.Z.), Limited.

Mr Allen said the successful tender was submitted by two wellknown Italian contractors who had formed a New Zealand company for the carrying out of this work. Since a report on the tenders received was submitted to the Government in February, 1966, negotiations had been held with the Federation of Labour, which acted for the various unions. Mr Allen said that last week the contractors agreed with the Government on the proportion they would carry of the increases in costs which had taken place since the tender wt. submitted in December, 1965.

“The tendered price of £9,742,066 will be increased by about £330,000, mainly because of increases in wage levels since December, 1965,” he said.

The Minister said that the contract price could be further increased by cost increases in specified items which occurred during the course of the work. 10 Miles of Tunnels

Mr Allen said the contract covered almost 10 miles of tunnell’ng and was the major part of the western diversion, which would carry water from a number of streams on the western slopes of the central

North Islands mountains into Lake Rotoaira. The water from Lake Rotoaira would feed the Tokaanu power station on Lake Taupo, which was being built by the Ministry of Works and, in addition, the diverted water would increase the electrical output from all existing sta. tions on the Waikato river. Under Consideration Asked at a press conference tonight whether the Government had made any decision on the No. 3 tunnel of the Tongariro power scheme, the Prime Minister (Mr Holyoake) said it was still “under consideration.” “It is quite normal for contracts to be let progressively,” he said.