A decision has been made on how some of the most urgent cyclone recovery costs for Hawke’s Bay will be shared between central and local government.
Hawke’s Bay’s five councils have confirmed the terms of an agreement worth up to $556 million, subject to consultation with communities in Hastings and Napier.
The cost-sharing agreement will have councils with Category 3 residential properties and central government adopting a 50/50 cost-sharing approach to the voluntary buyout of these residential properties, with the Government contributing up to an estimated $92.5m. Government and council contributions will be net of any insurance proceeds.
The $556m agreement also includes $203.5m to be put towards flood protection. Subject to design, interest in land and ability to build, the proposed flood protection works will benefit areas that are currently Category 2 from Wairoa to Pōrangahau.
These include key sites such as Pākōwhai, Ōmahu, Waiohiki and Havelock North. Funding will also enable upgrades to specific pump stations and telemetry across the network. Also included in this figure is $70m specifically earmarked as the estimated cost of a fully funded flood protection scheme for Wairoa.