Local firm tipped to build hydro project

By CHRIS DANIELS

Local engineering firm McConnell Dowell is tipped to have won the job of building the first hydro-electric power scheme constructed in New Zealand for 20 years.

State-owned power company Meridian wants to build a canal-based power generation system, known as Project Aqua, on the lower reaches of the Waitaki River.

McConnell Dowell is reported to have joined forces with US engineering giant Bechtel in being picked by Meridian to build the scheme.

Meridian is adopting an "alliance" approach, where all parties - owner, builder and designer - share the risks and rewards, agreeing not to take legal action against one another.

Instead of a tender, the three parties agree on a target price and all suffer if the project goes over cost.

The status of the resource consent application is unclear.

Environment Minister Marian Hobbs may move to "call in" the applications, meaning she will take the decision on whether to approve the project.

Project Aqua would generate 570MW of power from a series of six power stations built on a 60km canal running along the banks of the Waitaki River between Oamaru and Timaru.