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Dam Lies Coming Home To Roost

27/07/2025

Dam on shaky ground

The Waimea Irrigation (Community) Dam has both the Tasman District Council and Irrigators begging for a hand out from the Government.

Dam on shaky ground

The once claimed “P95” $76 million dam as consulted on with the Tasman District was supposed to have a 95% guarantee of coming on or under budget (according to staff). The later revised budget of $104 million after early contractor engagement was supposed to be “as good as a fixed price dam” according to the Council head of Engineering Richard Kirby. And when queried about the lack of contingency budget Council CFO Mike Drummond assured Council that there was so little of the dam that wasn’t fixed price that the actual contingency figure was more like 30%.

With the dam reaching completion in excess of $200 million, these empty statements and assurances have left the community reeling in the wake of sky rocketing costs. The actual figure of the dam final costs has been well under reported with sunk costs that were supposed to be part of the figure lost along the way. There was originally budgeted for facility for power generation to be added on, also lost along the way. The costs of numerous renegotiation as the price escalated all worn by the rate payer in the form of “overheads” also not part of the announced final figure. Added to that the sky rocketing running costs of the dam leaving a sour taste and increased pressure on rates and water affiliation.

The claimed difficulty in selling extra shares was an issue that was always going to rear its ugly head. The general ratepayers already picked up a number of those extra shares as the initial boast by irrigators was deemed a little unrealistic as some of the land originally included was uphill and would require a new irrigation scheme to give the land owners access to the increased water. Without accounting for the ever increasing pressure for more housing; boosted by Government mandates for Councils to keep supplying available zoned land. The remaining land needing to become involved in the share uptake would require the current owners to change farming practices for it to be affordable even at the originally quoted prices. Perhaps some of the larger shareholders were hoping to buy out all those not participating?

Ironically, a number of the larger shareholders have already sold out, even from those seen laughing and congratulating each other in the video linked in the above article. It makes one wonder if all those stories told during the dam deliberations about generational farming etc were not just more lies and the real aim of the project was just to get their names on a dam?

Unfortunately, for those left trying to farm and live in a region drowning in debt the consequences are a little more dire.

As this goes to print the Tasman District is struggling to recover from two significant weather events in the past fortnight and yet another one potentially looming in the coming week. Unfortunately, a lot of land owners near rivers and water ways have suffered significant damage. The cost of exorbitant rates and water charges leaves little spare for rebuilding flood damage.

The general rate payer fares even worse following the weather events because Tasman District Council in an effort to keep rates affordable in the recent annual plan round had to cut doggy doo bags and halve the amount of road sweeping done. One can only imagine how fixing rivers and roads across the region will fit into rate allocation if they were already scraping the barrel that low. Not to mention the loss of Council owned forestry income (that was supposedly ear marked for dam loan repayments) suffered as a result of windfall during the storms.

Nominations for the next term of Council are due to close in the coming week. Those elected will be on a hiding to nothing as recovery from the Kempthorne, King, Bryant dynasty will take a generation at best. That is assuming we get a change of leadership and direction within Council. Rubber stamping, woke, and agenda driven politics need to be kicked out. If we have any hope of recovery in the Tasman District we will need to return to doing the basics and doing them well. Lets see if the region is ready for change or if we will vote in the final chapter of the District as an independent entity.

Filed Under: Dam, Spending, Vote For Change, Your Say Tagged With: dam overruns, Debt, Tasman District Council, Waimea Community Dam, Waimea dam

Tick Tock Tick Tock The Dam and The Clock

23/10/2023

waimea dam clock ticking

Summer is fast approaching and according to the NZ Herald “There’s now also a good chance the long-anticipated climate system – which could be formally declared within weeks – will sit among the strongest El Niños seen in the past 80 years, with officials already warning of fire danger and a heightened risk of drought.”

the Waimea Dam clock is ticking

So, it is a good job that the $200 million dam (give or take – as the final bill is yet to be presented) is on track to provide much needed water to the Waimea Plains and surrounding homes and businesses. At least that was the last we heard from the dam construction CEO Mike Scott.

Perhaps in an ordinary year it wouldn’t be such an issue if the dam wasn’t completed as indicated but this is no ordinary year. Not only do we have the impending threat of an El Niños weather pattern bringing a particularly dry summer, but we also have a district facing financial ruin without any added stresses.

The Government’s best attempts to bankrupt the country have very nearly succeeded. Covid lock-downs, excessive taxes and added costs, high wages and reduced work forces, out of the park inflation accompanied by the hiking interest rates to control it, all add up to many in the primary industry sector relying on a bumper crop to keep afloat. Without the added costs added by a Council equally drunk on spending other people’s money.

Now imagine the unthinkable: that $200 million (give or take) spent on dam insurance for such a time as this comes up short.

Clearly there has been no indication from Mike Scott that there are any issues to concern us. Council has been equally silent. Or have they?

Tasman District Council water conservation warning

It seems odd that the Council is issuing conserve water adverts. The dam that was supposed to provide 100 years water security, included massive provisions for growth in our urban communities. In fact, not only did we buy enough security for expected “high growth” figures for our district, but when the irrigators first began pulling back on their commitments the Council bought up extra shares in the dam. So with all this extra capacity up our sleeve in year one of the dam operation we should be swimming in water. And yet the message is inconsistent with this position.

Possibly, the Council are just being prudent in case the predicted drought turns out to be the mother of all droughts and exceeds the copious growth buffer that we bought. Because once operating at full growth capacity the dam only provides security for a one in sixty year drought. An extreme drought will still evoke water restrictions in that scenario.

Possibly, the dam is not fully functioning as indicated. We have history that would indicate the rate-payer has been grossly mislead before. For instance, the dam had a P95 at $76 million; the dam was “as good as fixed price” at $104 million; they had found bedrock – better than expected in some places.

One thing is for certain: the clock is ticking. And time is a great revealer of sins and lies.

When the dam was at a mere $158 million I made a predictive statement based on the evidence presented to me. Tick Tock Tick Tock.

Filed Under: Dam, Your Say Tagged With: Waimea Community Dam, Waimea dam, water

Waimea Irrigation Dam or Waimea Community Bridge

18/12/2022

dam or bridge

The hundred million dollar question is “Will the Waimea Dam hold water or have we built a $200 million bridge?”

dam or bridge

In the December 2022 update Mike Scott CEO of Waimea Water, the dam construction company, tells us that we are still on budget but the budget is being stressed by various items such as the cost of the Mechanical & Engineering components that were never designed or priced in the original quote. Makes you wonder how we ever had a “P95” guarantee doesn’t it?

However, this has also been the story told to Council in the past. We are on budget but there are pressures. Nek Minnut a $30 million blow out. Never saw that coming! Not the first time, not the second time, not the third time. And yet here we are $195 million versus the P95 price of $76 million.

The dam is now about 84% complete as compared to the 75% complete at the last two updates. Because it 75% complete in the first update early in 2022 and then again 75% complete in the mid year update we discovered that the update percentage figure is tagged to the timeline and not the amount of work done. So, because the completion timeline was pushed out in the midyear update the percentage completed remained the same. We have now revisited the practical completion date, bringing it forward some months so the percentage completed jumps up accordingly. Who knows what percentage of the actual work has been completed between updates because we don’t measure that metric apparently.

What is more pertinent to the question that we should all be wanting an answer to (Will it hold water?) was Mr Bedrock-everywhere Scott’s comments around the grouting. Of course, most of the Councillors had no concerns at all in this regard, and were busy patting themselves and others on the back for doing such a great job to get this far.

Will all this work be in vain?

In answer to Councillor Walker’s question Mr Scott explains that the grout curtain seals substrata and stops leakage under the dam. It is a process where we drill 44 meters down into the substrata and pump concrete into the holes sealing up all the leaks. We budgeted for 5000 meters of drilling and now have completed 17000 meters of drilling which is much more than originally budgeted.

When Councillor Walker asked for clarification that they are drilling down to bedrock Mr Scott replied “No.” When then asked how far they drill he responds.”it is through the rock, all rock has permeability. The deeper you go down the longer the path so there is less flow so the grout curtain is deepest at the deepest part of the reservoir and it is through rock sealing up .. sealing .. or reducing the permeability of the rock.”

Councillor Greening followed up Councillor Walker’s questions with “In the past when you have spoken about grouting you have explained it in terms of drilling down to bedrock. Have we drilled down to bedrock given that was best practice or have we not drilled to bedrock and stopped at 44 meters?”

Mr Scott responded “Drilled through bedrock The dam is built on rock, we have cleared the overburden and got down to sufficiently strong bedrock to found the dam, drilled down through the bedr… through the rock up to 44 meters deep to reduce the permeability of that rock.”

Again, Councillor Greening sought clarification “we have got grout holes drilled down to bedrock and through bedrock is what you are saying?”)” And got the response “Through the rock that is right.”

One more attempt from Councillor Greening for a direct answer “through bedrock? draws yet another blank with Scott’s “yeah through yeah through founding rock” answer.

So what did we learn from that exchange? We learned that their initial site investigative work suggested that they would need to drill 5000 meters of grout holes. Once they started they decided that they needed to drill 17000 meters (up to 44 meters deep) of grouting. What we weren’t told is whether they believe they have now sealed the reservoir or whether they stopped due to budget or other constraints (such as still no sign of solid rock at 44 meters).

Mr Scott’s dancing around the answer of are they in solid bedrock with yes bedrock/rock/all rock is permeable/founding rock could be a confirmation of the word on the street that some of the holes were seemingly bottomless soft rock/clay. Possibly the result of building a dam on a fault line – sorry, according to Mr Kirby Council Head Engineer it is just a convergence of “shear zones” running through the dam site.

The stumbling Mr Scott did around the grouting “sealing up .. sealing … or reducing the permeability” also suggest that he was reluctant to say that the grouting to date was a success at sealing the reservoir floor, or sealing it sufficiently that we have a dam and not a bridge.

(sorry mostly sound .. skip to 40 seconds to hear start)

One thing is very clear, and that is that the initial dam site examination was woefully inadequate. If we examine Mr Scott’s comments in light of studies about dams we find that not only was the site selection particularly bad, but the investigation into the site was woeful, and now there questions over the construction process. But don’t take my word for it, lets have a look at some instances.

Our findings show that bedrock permeability is a higher-order control on flow path distribution across catchment scales, and hence on MTT scaling relationships. This is particularly significant as more and more researchers are finding that bedrock groundwater makes significant contributions to streamflow in catchments where the bedrock was previously thought to be impermeable [Gabrielli et al., 2012].
Source

This extract highlights that even “bedrock” can be more permeable than first thought, agreeing with Scott’s assertion that all rock is permeable. However, as he was reluctant to be committed to the term “bedrock” we are left questioning what kind of rock the dam is built on and where exactly it sits on the scale of permeability.

There are two main types of porosity: intergranular porosity that characterizes sands, gravels and mud, and fracture porosity in hard rock. Fracture porosity forms during brittle failure of hard rock or cooling of lava flows. Fracture networks that are connected can provide pathways for fluid flow even when the host rock is impervious (e.g. granite, basalt, indurated sandstone). Highly productive aquifers are not uncommon in fractured bedrock.
Source

Here we discover that “highly productive aquifers are not uncommon in fractured bedrock.” One would be “very surprised” to learn that there are highly productive aquifers under a dam site located between to major fault lines and sitting on yet another convergence of sheer zones! Doesn’t sound like a place you find fractured bedrock at best to me.

Fracturing of the rock commonly accompanies faulting, and a fault may be marked by a zone of fracturing rather than by a single fracture. Faults and the fracturing that accompanies them also afford avenues by which surface weathering and solution activity can attack the rock. Fault zones present a possible escape route for the reservoir water, and faults also indicate, in varying degree, the hazard of continued or repeated movement.Faults in the foundation and abutment rocks at a dam site and in a reservoir area introduce problems of bearing strength, stability, and water-tightness and, therefore, sites that contain them should be avoided. Stable dams can be designed for faulted foundations, but the cost of the necessary remedial treatment may be prohibitive.
Source

“Sites that should be avoided” if this was a dictionary entry I would suggest that the Waimea Irrigation Dam site would be the explanation following it. Not only can we expect a leaky reservoir, we can expect that there is likely to be further movements adding to our woes for years to come (should the dam be completed) and of course the remedial work might be prohibitive were it not for the fact that there is no off-ramp for this council. We must have the Kempthorne/King/Bryant/Mailing memorial no matter what.

Conclusions Monitoring of seismic activity
• Prior to construction,
• During impounding of reservoir, and
• During first years of reservoir operation is highly recommended for (i) large storage dams, and (ii) dams located in tectonically stressed regions.
Source

I found this comment particularly chilling. I don’t think there is any dispute that we have a dam located in a tectonically stressed region (in fact I would suggest we are right on top of a fault line), so have we been monitoring seismic activity at the dam site before, during, and looking ahead into the future?
As the article goes on to explain below, the pressure exerted by the reservoir water has the potential to create seismic events, especially in a site already loaded with shear zones and weak rock. This is important because any failure of the grout curtain, assuming it works in the first instance, could well see a failure of the dam by way of erosion of the foundation. I mean what are the chances of an earthquake cracking an unreinforced concrete grout curtain places on a fault line?

The statistics of dam failures performed by ICOLD [8] takes into account dams 15 m high or more or with a storage volume of at least 1 million of cubic metres. The results of this work can be summarized as follows (data from China and the URSS were not considered): the most common type of failure in earth and rockfill dams is overtopping (31% as a primary cause, 18% as a secondary cause), followed by internal erosion of the body (15% as a primary cause, 13% as a secondary cause), and in the foundation (12% as a primary cause, 5% as a secondary cause) ,,,
Failures leading to catastrophic consequences occur typically at first filling and full reservoir stage, although overtopping during construction has caused, in some cases (for example Panshet dam in India, Sempor dam in Indonesia and S. Tomas dam in Philippines), several victims.

A dam [38] radically alters the natural antecedent state of stress in the valley flanks and river channel; it adds weight, a more or less concentrated vertical load resulting in a complex compression and shear forces in the foundation. It transmits forces caused by loading during its operational life (water load, temperature effects, etc.). These forces produce compression, shear and often upstream tensile stresses. Water seeps into pores and rock discontinuities of the foundation; seepage forces can be considerably high and act in extremely unfavourable direction for stability of dams. The main steps of stability analysis of such a complex structure made up of rock mass and concrete structure consists of the definition of the possible modes of failure and calculation of the equilibrium conditions for stability. Geological and rock mechanical studies are required to evaluate the possible modes of failure and the variables of the problems. Analytical or numerical methods are used to assess dam foundation stability conditions.
4.1 Geological and rock mechanics studies
Geological studies with field explorations help to determine the feasibility of a dam and decide the general layout of the works including dam type and position. The first geological work [38] is to outline the regional and thereby the site structure, then the genesis and history of rocks and hence their stratigraphic, petrographic and tectonic descriptions which indicate the type of the problem to be expected. High-scale hydrographic and hydrogeological studies are required since a dam construction determines the presence of a new water reservoir which changes the original superficial and underground water flow. The principal purpose of rock mechanics studies is the characterization of the rock mass hosting the dam in order to assess deformation and strength features and to evaluate the geometrical and physical properties of singular and systematic rock discontinuities.

Filed Under: Dam, Your Say Tagged With: dam overruns, Waimea Community Dam, Waimea dam

13 Reasons Why-The Waimea Dam

15/10/2018

13 reasons why the Waimea Dam

Waimea Irrigators Ltd (WIL) have announced a new funding model for their share of the dam. The institutional investor that rode in on a white horse the day after the Council voted the Waimea Dam funding and governance model down has been side-lined.

[redacted] the institutional investor, whom we know not the identity of,wanted to de-risk his investment by shifting the risk of his shares onto theirrigators. The same irrigators who have shifted large portions of their riskonto the general rate-payer and urban water user. When the irrigators saw thatrisk was being shifted to them in similar fashion they started to squeal like a stuck pig and said it wasn’t fair.

Instead of this unfair arrangement they said they would like to fund the extra shares themselves, so [redacted] passed the hat around, and within a few days they had come up with an extra $11 million dollars from 13irrigators (and possibly one non-irrigating shareholder).

These are the same irrigators, who when we were talking about an $83 million-dollar dam said they were “at their limit” of payment and wanted Council (the urban water ratepayer) to buy more shares then the amount of shares we already had signed up for to more than satisfy our 100-year demand.

These are the same irrigators who were “at their limit” on the $83 million-dollar dam and could not possibly be tied to any dam overrun expenses, thus shifting 100% of dam overrun risk on to the general ratepayer and urban water user.

These are the same irrigators who were “at their limit” when the environmental flow components of the dam were being divvied out [these figures are a fabrication designed to shift cost from irrigators that should fall on the users for using the river as a conduit to run their water from the dam to their pumps like with all the plan B options]. The end result being that the general rate-payer had to pick up these costs (now a total of 52% of running costs) because “we all have to get there together or we don’t get there at all.”

These are the same irrigators who were “at their limit” on an $83 million-dollar project who managed to find “their share” of the increase in the dam budget when the project became a $102 million-dollar project – within a matter of days.

And now we see that within a matter of days 13 irrigators (plus possibly one other) are able to put their hand in their pocket to find another $11 million dollars. This would be in line with the comments by WIL chairman Murray King who said if the dam doesn’t go ahead they would spend more than four times their dam contribution to put in their own water supplies. 

Dam under hostage

The 13 reasons why this dam is being built have been revealed, and they will, once the dam is built, control the water on the Waimea Plains as they have a monopoly on water right allocations. They will set the price of any water shares sold and they will determine if the applicant is a worthy recipient of said shares.

[I am told this statement is factually incorrect. Council controls water right allocations through the TRMP, what the investment vehicle will partly control is the ability to affiliate and therefore get a more secure water supply.]

[redacted] This despite the fact that the general rate-payer and urban water user will be subsidising irrigators on the Waimea Plains for at least the next 100 years anyway.

On top of that we have still ended up with a scenario where the Council does not have a buffer zone between when irrigators are required to experience water restrictions and when the Council reticulation is required to experience water restrictions. I have heard all the explanations from staff how with the dam this won’t be an issue for 100 years. I have also heard how the Government could change what we currently consider to be an acceptable minimum flow in the river at the drop of a hat. I am also waiting to see that the dam works as described as we head into changing climate conditions. [redacted]

Filed Under: Projects, Your Say Tagged With: Funding, Waimea Community Dam, waimea irrigators

Dam Decisions

08/09/2018

Waimea dam decision

Congratulations to the Waimea Irrigators who have secured a subsidized water supply for the next 100 years (assuming the dam can be built, functions as intended, and lasts for 100 years). I hope the smaller shareholders in WIL are informed as to what risks they carry. Given that 2000 shares have been sold to investors only 3000 shares are target rateable in the event council comes knocking for a share of any overruns. I suspect that some of the 3000 shares are held by people with an exit strategy also, although councillors have no idea who the shareholders (or the investors) are.

Businesses on the reticulated supply will also be celebrating. However, I hope they read the fine print of this dam that they wanted so badly. I also thought a dam was a good solution, but not THIS dam. If the costs start to overrun then water on the reticulated supply is going to be eye wateringly expensive given that we are starting from a position of the most expensive urban supply in the country. One can imagine in this scenario that Nelson residents being supplied from Tasman will insist that Nelson City Council supplies them water, and in that scenario, there will be another million dollars a year (current prices) that will fall back on Tasman residents and businesses.

Waimea Dam good deal

Looking ahead (given that I have been accused of near sightedness among other things) we are destined for a similar problem that exists with the current over-allocation model. Urban supply should always have been protected as allocations were made on the plains. This did not happen and the council has repeated exactly the same mistake with the new dam supply model.

Given that the urban water user and businesses are paying for gold-plated shares in the dam (because it is not an irrigator subsidy) we should have a gold-plated supply guarantee. This would look something like a protected portion of the reservoir that can only be released to cover the urban supply. The deal that we have got is a deal where everyone is on the same restrictions.

During the summer the irrigators will be pumping full allocations and the tap on the dam will be opened to meet the demand. When the dam gets down to 20% capacity water restrictions will kick in across the board (irrigators, urban, and commercial). Everyone will end up on cease take at the same time just as occurs now. This will not affect the bulk of irrigators as they need the supply early in the summer before their fruit and crops are harvested. The most likely irrigators to be affected by late summer restrictions are market gardeners and dairy farmers extending their season.

However, the industrial users such as fruit processors, and the meat works will be hitting peak season as restrictions apply. Other industries also spoke about how they cannot afford any restrictions, such as the glue plant, cool stores, and the mall etc. Given the exceedingly high price our industries are paying for their “water security” I hope they are happy with the deal this dam offers for the next 100 years.

Since I am so nearsighted, my objection that there is no mention in the Terms Sheets of who pays for the decommissioning of the dam is obviously redundant also. But what do we care, we won’t be around in 100 years, right? Let’s hope this dam doesn’t need decommissioning before then.

In the short term I only have to worry about the degraded state of the river, a responsibility in our consents and under The National Policy Statement For Fresh Water (that doesn’t state we have to build dams contrary to what dam supporters keep telling me). The corners being cut in dam construction by flooding a huge quantity of mulched wood and stumps left in situ will be challenging to mitigate the effects of. It is highly likely that the running costs will blow out accordingly as we try and mitigate these effects – further adding to the burden on water users.

Of course, my concerns are only based on a few vocal nay-sayers and I should only be taking the advice of staff and their experts.

No doubt time will tell who are the heroes and who was the voice of reason. Whether dam advocates will be labelled as saviours of the district or whether the nay-sayers will be able to say “I told you so.”  But one thing is for sure, if this dam doesn’t deliver as promised, it won’t be the wealthy that will be left homeless.

pool celebration
Cheers

Filed Under: Projects, Your Say Tagged With: decisions, fine print, risks, Waimea Community Dam

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