A pair of Australian consultants have been flown in to rescue Wellington’s over-budget, behind-schedule sludge minimisation project. 

The first-of-its-kind facility, which the council describes as “one of the city’s most significant infrastructure projects”, was initially set to cost $200 million, but has ballooned to above $500m. 

Issues with the project were laid bare following a review in August last year, when council officials revealed a budget blowout of up to $83m. 

Following that, project director Janet Molyneux’s contract finished, and the council “hunted around the world” to find someone who could get it to the finish line, chief infrastructure officer Jenny Chetwynd told councillors at a briefing last week. 

Former Melbourne Water manager Eamonn Kelly is now leading the work, alongside “sidekick” John Hearst. 

A Wellington City Council spokesman told the Herald the council was paying a combined AUD$3500 per day plus GST and expenses for the pair, expected to clock up to about $1.2m over the course of the project. 

“It is common in major infrastructure projects to switch out project directors, to have the most relevant skillset leading at each part of the project,” a spokesman said in a statement. 

“Getting the right skillset at each phase means differences in costs. It’s important to invest for the right skillset to prevent disproportionately higher costs later.” 

The sludge minimisation facility is expected to be operational from April 2027. Photo / McConnell Dowell 

Speaking to councillors, Kelly said he has been working in water infrastructure since the 1970s, and has experience with “projects that have got into strife”. 

“I understand the strife it’s been through,” Kelly said. 

“I know it’s expensive, but what you will end up with is an iconic project that I’m sure will win awards.” 

Chetwynd said the build was “challenging a whole lot of spaces that New Zealand hasn’t got a lot of experience in” and flying in Kelly had “given the project board a whole lot more confidence” that issues were now being dealt with better. 

“I wouldn’t necessarily use the word ‘project in strife’ but ‘project under pressure,’” she said. 

“I know that I mentioned earlier the project was in strife, maybe a bit harsh I think, but certainly not going to plan,” Kelly later clarified. 

The facility is 75% complete, but remains in the red due to delays. 

It is currently set for completion in April 2027. 

“Eamonn’s view is that’s quite conservative and we’re really hoping to bring that back to February under the scheduled programme, that is against an initial project date of December 2026, so we’re still a few months behind,” Chetwynd said. 

A revised budget of $511m was approved in August, but Chetwynd said the team are working towards a budget of $483m, and are confident they will not need additional contingency. 

Construction of the facility is funded by a targeted levy on rates bills, but the most recent budget increase remains unfunded. 

Wellington City Council currently disposes of sewage sludge at the landfill. Photo / WCC 

The sludge minimisation facility is reliant on wet sewage sludge produced by the adjacent Moa Point wastewater treatment plant. 

The new facility will dry and break down the sludge by thermal hydrolysis, which acts like a pressure cooker. 

Issues at the out-of-action Moa Point wastewater treatment plant may also pose further delays. 

It is not yet known when the stricken wastewater plant could return to service. 

Chetwynd said it will be a matter of months, not weeks, before it is fixed, but said an indicative timeline will “hopefully” be released in the coming weeks. 

Ethan Manera is a Wellington-based journalist covering Wellington issues, local politics and business in the capital. He can be emailed at [email protected].