The future of Eden's Safe Harbour Project, in particular the wave attenuator, has hit troubled waters with the news that Waterway Constructions will cease trading this year.
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The company was responsible for construction of the Eden Wharf extension and in June 2018 discussions started on the design and construction of the attenuator.
Late in 2018 the Department of Industry stated it was continuing its early contractor Involvement activities with Waterway Constructions Pty Ltd to optimise the concept design.
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"A design and construct contract will be finalised and awarded shortly and construction is scheduled to commence in early 2019," the DPI said.
There had been $19m allocated for the attenuator with a further $1.5m for a feasibility study earlier.
But in November 2018 Waterway Constructions parent company, the Keller Group, flagged the restructuring of the business due to the financial situation.
In May this year the company said "additional action would be taken in response to the further deterioration in the market and the restructuring of the Waterway business announced in November 2018".
I rang the head of POEM (Port of Eden Marina) Rob Bain last week and reiterated that the project is in the 2019 budget.
- Member for Bega, Andrew Constance
"Waterway has incurred significant financial losses over the last three years," Peter Wyton, president, Asia-Pacific Division said.
"Waterway expects to finish the majority of existing contracts with clients by 31 October 2019. As it moves to cease operations, it will not pursue any new work or start any new contracts," Mr Wyton said.
However member for Bega Andrew Constance has confirmed that the project was in the 2019 budget.
"I rang the head of POEM (Port of Eden Marina) Rob Bain last week and reiterated that the project is in the 2019 budget," Mr Constance said.
Mr Constance is expected to meet with Mr Bain in the near future with a view to "canvasing the best way forward".
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POEM has pushed for the attenuator and president Rob Bain had input regarding the design. POEM used International Marina Consultants to represent their concerns and suggest an alternative design to that first proposed.
In June 2018 Mr Bain said that the group was "having detailed technical discussions with Crown Lands with a view to ensuring the best design," and said that it would most likely end up being larger but better than originally planned. Mr Bain also said it would be fixed rather than a floating structure which resulted in cost implications.
My guess is that funding is an issue that is being looked at.
- Rob Bain, POEM
In August 2018 Mr Constance announced a further $9m "to get on with it" in addition to the existing $10m for the wave attenuator, while at the Eden Business and Community Awards dinner.
But now - in addition to the news that Water Constructions will not be available - there are rumours that the project may suffer significant cost increases.
"My guess is that funding is an issue that is being looked at," Mr Bain said in response to a question about cost.
"Now our expectation is that they will go out to public tender," he said.
The final alignment for the attenuator has been determined in consultation with key stakeholders to ensure this would not impact upon port operations and individual business owners' requirements. The attenuator will be approximately 366m in length and commence 55m from the end of the existing multipurpose jetty and extend into Snug Cove towards Cattle Bay.
The NSW government is looking to proceed with the Eden Safe Harbour Project but it has to be done affordably and a number of options need to be considered.
- Transport NSW
Managing director of Waterway Constructions Craig Allen said parent company, Keller Group would continue to support Waterway Constructions Pty Ltd and all project warranty and defect obligations would remain in place and honoured as contracted to do so.
A Transport for NSW spokesperson said NSW government has been notified Waterway Constructions Pty Ltd will cease operations by October 31.
"The NSW government is looking to proceed with the Eden Safe Harbour Project but it has to be done affordably and a number of options need to be considered. The priority is building a safe refuge for the boating community," the spokesperson said.
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