A business case to support potential applications to bridge a $23 million funding shortfall for the proposed Matatā/Edgecumbe/Whakatāne integrated wastewater solution is expected to be finalised before the end of 2016.
Reporting to the Whakatāne District Council Policy Committee last week, Strategic Projects Manager Jeff Farrell said the business case for the project was awaiting further information from studies being undertaken by the Bay of Plenty Regional Council.
Preparation of the business case follows the NZ Treasury’s Better Business Case model and commences with the preparation of an indicative business case for initial approval. Once funding is approved, a detailed business case is prepared to guide the project to completion.
“The business case approach requires us to objectively review the integrated wastewater proposal as if it was a new project,” he said. “Our early analysis indicated that a number of information gaps needed to be filled before a compelling case for investment could be developed. These included the extent of the public health risk arising from Matatā’s current septic tank disposal systems, the impact of those systems on surface and ground water quality in Matatā, the proportion of properties which would not comply with the requirements of the Regional Council’s On-site Effluent Treatment Regional Plan and the economic and practical feasibility of bringing systems up to standard, and quantitative evidence of the benefits of removing septic tanks from the township.
“The Regional Council is supporting the project by gathering the additional information needed to support the business case, which will include carrying out on-site inspections of 100 property effluent treatment systems over the next two months.”
Mr Farrell said another strand of work would allow the public health, social, cultural and environmental benefits of four possible options to be given a monetary value, for financial comparison purposes – a key element of the business case methodology.
“The shortlisted options offer different benefits, but we anticipate that the proposed integrated solution would deliver positive values, based on factors like reduced odour complaints, eliminating sewage overflows, reduced contaminants in surface water, improved freshwater ecology, sustaining the ‘Mauri’ of freshwater, and improved service levels,” Mr Farrell reported. “To be affordable for the community, additional external funding will be required, and Iwi and community support will be a key consideration in deciding whether funding applications should proceed.”