Waikato Waters $2m over budget as storm-damaged plant eyes November reopening
Mon, 5th Oct 2026 (Today)
Waikato Waters is confident Waipā's storm ravaged water treatment plant Te Tahi will be operational in November, but confirmed the organisation's total budget expenditure has blown $2 million over budget.
The new council-controlled organisation's annual report outlined a $18.6 million spend for the period ending June 30 with a budget of only $16.5 million.
"Higher-than-budgeted expenditure was primarily attributable to people and capability, governance and legal, and systems and technology activities required to establish the organisation and prepare for the transfer of water service operations," the report read.
Asked if the overspend will result in a higher consumer fee, chief financial officer James Graham said the difference is "covered by contingency funding approved by our shareholding councils".
"There will be no additional impact on customer charges as a result," he added.
After a severe weather event in February destroyed it, Te Tahi is expected to be operational in November in a limited capacity, the organisation confirmed.
The closure has left many sectors in the lurch, including property developers in Te Awamutu, Kihikihi and Pirongia who cannot obtain new water connection consents for at least three years.
Waikato Waters chief infrastructure officer Sarah Sinclair says the outfit has been "working hard" to get the plant back online, but added efforts will not eliminate the risk of water shortages during the predicted El Niño conditions forecast nation-wide.
"These repairs put us in a stronger position heading into summer, but water supply will always be heavily influenced by rainfall, river flows and peak summer demand," Sinclair said.
"If conditions are as predicted; water conservation will remain very important for the Waipa network."
Rates revenue transfers from shareholding councils fund Waikato Waters through its first year of operating, Waipā transformation director Kevan Scott added, saying it will not begin charging consumers directly until 2027/28.
Water rates are still to be paid directly to council until Waikato Waters sets up its own billing service.
"Waikato Waters was established to capture the benefits that come with scale - more efficient procurement, reduced overhead costs across multiple organisations, and the ability to raise debt on more favourable terms than individual councils," Scott added.
"Over time, these factors should mean the cost of delivering water services grows more slowly than it would have if those services had remained with councils."
Waikato Waters took over all operations in Waipā as well as Waitomo and South Waikato districts July 1, with Scott calling the relationship between the two parties "positive and constructive".
"Three months is too early to draw conclusions about performance," he added.
"Formal performance reporting against the Statement of Expectations and Water Services Strategy will be established over time and reported regularly to the Shareholders Representative Forum."
