Agreement On Smelter Access Road Signed

Press, Volume CVIII, Issue 31772, 31 August 1968, Page 1

Agreement On Smelter Access Road Signed

(New Zealand Press Association)

INVERCARGILL, August 30.

The agreement between Comalco and the Southland County Council on the construction of the Tiwai smelter access road was signed today, and the contract was officially let to the lowest tenderer, Wilkins and Davies Construction Company, Ltd, whose price for the project was $1,247,430.61.

The chairman of the Southland County Council, Mr W. Baird, and the secretary, Mr A. J. Drage, signed the agreement with Comalco. The council was told that the Local Authorities Loans Board had approved a $500,000 loan for the third share of the project being financed by the council. The agreement between Comalco and the council had been delayed for technical reasons. However, this did not stop some sub-contractors making a start on work associated with the smelter access. The agreement entails the cost of the road across Awarua Bay being met as follows: One-third by the National Roads Board; one-third by the

Government out of the road vote; one-third by the Southland County Council. Comalco will service the loan raised by the county for its share of the cost, and will

pay for the maintenance of the road. Under the agreement Com alco will pay brokerage in re spect of the loan if this is not paid from the proceeds of the loan; pay the holding fee (if any) payable in respect of the loan if it is not paid from th« proceeds of the loan; and pay half-yearly interest and prin cipal in respect of the loan and in respect of any redemption loans that may have to be raised in relation to the loan.

Comalco will repay the loan over 30 years. The interest rate is not to exceed 5j pet cent.

Comalco will also pay the county $5OOO a year for a period not exceeding five years for improving and maintaining other roads in the county considered to be ancillary to the activities of the company.

For the first five years the company will meet all maintenance costs for the access road. After that “the maintenance shall be fairly attributable to the use of it by the company and others using it by reason of the activities of the company." The county will give Comalco a 25 per cent cut in rates on land used on the Tiwai Peninsula. If other industries are established near the site and use the road the rates will be further reduced.

These conditions will apply only if the council does not change its system of rating on unimproved and capital values.