Central interceptor - non transparency

C Stuart C made this Official Information request to Auckland Council

The request was partially successful.

From: C Stuart C

Dear Auckland Council,

Further to the request by ‘Iain S’ on the 6th of March and Watercare’s response on the 22nd of March, I have the following questions relating the awarding of the Central Interceptor waste water tunnel project in Auckland:

1. First and foremost, please advise who the contract for the Central Interceptor was awarded too. As the contract has been awarded to Ghella-Abergeldie when the board paper refers to Ghella-Abergeldie Harker? These were two separate trading entities during the procurement of the project.

2. Please provide the board recommendation report for the awarding of the Central Interceptor project to Ghella-Abergeldie / Ghella-Abergeldie Harker with out the contract items and summary BOQ items blacked out. This is a public works / local government contract and Watercare Service Limited should be seen to be transparent in the letting of public contracts to privately held companies.

3. Please provide copies of the four ‘Letters of endorsements from the four independent advisors’ Further to this, please provide evidence off their expertise by way of their professional CV’s.

4. Please provide details and minutes of the negotiations with GAH as referred to in section 2.1 in the letter to ‘Iain S’ dated 22nd of March, which includes the board recommendation letter endorsing the selection of Ghella Abergeldie for the Central Interceptor project.

5. Please advise the changes to GAH’s proposal referred to in the second paragraph of 2.1 in the letter to ‘Iain S’ dated 22nd of March.

6. With the analysis undertaken by PWC on behalf of Watercare on Ghella and Abergeldie Harker, please provide the following:

i) Margins on large projects
ii) cash flow analysis of these projects
iii) access to capital
iv) pipeline of work and capacity.

Further to the above request, please advise which entity PWC undertook their analysis on, was it:
a) Ghella
b) Abergeldie Complex Infrastructure
c) Abergeldie Harker Limited.

Should the audits be only completed on Ghella as mentioned in the letter to ‘Iain S’ dated 22nd of March, please provide the auditors reports on Abergeldie Complex Infrastructure and Abergeldie Harker Limited. Please also advise what projects were audited, the project location and who was the principal for audited project including contact details.

7. It is referred in the letter to ‘Iain S’ dated 22nd of March, that the Abergeldie shareholder has previously provided financial support when required. Please provided further information of this shareholder and advise what personal guarantees this shareholder has provided Watercare and Auckland Council.

8. Please provide evidence of the parent companies guarantees as referenced in section 3.2 of the Watercare board paper.

9. Please provide the tabulated risk allowance showing full values for transparency.

10. Please advise the clause and framework used by GAH for escalations which limits the risk to the GAH JV. Further to this, please advise how and what value the other three tenderers allowed for escalations in their submissions? Furthermore, please advise why Watercare accepted this escalation risk?

11. In section 3 of the Board paper from January to the Watercare board, it references suitably of resources. Could these please be provided?

12. In the Board paper from January to the Watercare board, it references GAH’s carries the risk on tunnel spoil drying. Could GAH’s methodology please be provided to the general public for viewing?

13. In the Board paper from January to the Watercare board, it states GAH’s submission had several items from the sewer connections omitted. Please advise what these were and the value this increased their tender submission?

14. Please advise the final contract sum with Ghella-Abergeldie?

15. Please advise the final contract sum with Ghella-Abergeldie Harker?

16. Please provide the tender prices from the other three tenderers and please state the make up of these tenderers and their capacity?

17. Please advise the price for the Grey Lynn tunnel and the other three tenderers price for these additional works.

18. Please advise how liquidated damages could be applied to this JV and what the dollar value is on daily liquidated damages against the JV?

19. Please provide the contract construction programme for the central interceptor project between Watercare and the Ghella-Abergeldie JV?

Yours faithfully,

C Stuart C

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From: Official Information
Auckland Council

Dear C Stuart C

I refer to your email, which we received on 25 May 2019, requesting
information about the Central Interceptor waste water tunnel project.

I can advise that in accordance with section 12 of the Local Government
Official Information and Meetings Act 1987 (LGOIMA) we have transferred
your request to Watercare to respond directly.

They will respond to you request within 20 working days of receipt of your
request.

If you have any further queries, please contact us at 09 301 0101 or email
[1][Auckland Council request email]

 

Kind regards

The Privacy & LGOIMA team

Auckland Council

 

From: C Stuart C <[FOI #10384 email]>
Sent: Saturday, 25 May 2019 11:34 PM
To: Official Information <[email address]>
Subject: Official Information request - Central interceptor - non
transparency

 

Dear Auckland Council,

 

Further to the request by ‘Iain S’ on the 6th of March and Watercare’s
response on the 22nd of March, I have the following questions relating the
awarding of the Central Interceptor waste water tunnel project in
Auckland:

 

1. First and foremost, please advise who the contract for the Central
Interceptor was awarded too. As the contract has been awarded to
Ghella-Abergeldie when the board paper refers to Ghella-Abergeldie Harker?
These were two separate trading entities during the procurement of the
project.

 

2. Please provide the board recommendation report for the awarding of the
Central Interceptor project to Ghella-Abergeldie / Ghella-Abergeldie
Harker with out the contract items and summary BOQ items blacked out. This
is a public works / local government contract and Watercare Service
Limited should be seen to be transparent in the letting of public
contracts to privately held companies.

 

3. Please provide copies of the four ‘Letters of endorsements from the
four independent advisors’ Further to this, please provide evidence off
their expertise by way of their professional CV’s.

 

4. Please provide details and minutes of the negotiations with GAH as
referred to in section 2.1 in the letter to ‘Iain S’ dated 22nd of March,
which includes the board recommendation letter endorsing the selection of
Ghella Abergeldie for the Central Interceptor project.

 

5. Please advise the changes to GAH’s proposal referred to in the second
paragraph of 2.1 in the letter to ‘Iain S’ dated 22nd of March.

 

6. With the analysis undertaken by PWC on behalf of Watercare on Ghella
and Abergeldie Harker, please provide the following:

 

i) Margins on large projects

ii) cash flow analysis of these projects

iii) access to capital

iv) pipeline of work and capacity.

 

Further to the above request, please advise which entity PWC undertook
their analysis on, was it:

a) Ghella

b) Abergeldie Complex Infrastructure

c) Abergeldie Harker Limited.

 

Should the audits be only completed on Ghella as mentioned in the letter
to ‘Iain S’ dated 22nd of March, please provide the auditors reports on
Abergeldie Complex Infrastructure and Abergeldie Harker Limited. Please
also advise what projects were audited, the project location and who was
the principal for audited project including contact details.

 

7. It is referred in the letter to ‘Iain S’ dated 22nd of March, that the
Abergeldie shareholder has previously provided financial support when
required. Please provided further information of this shareholder and
advise what personal guarantees this shareholder has provided Watercare
and Auckland Council. 

 

8. Please provide evidence of the parent companies guarantees as
referenced in section 3.2 of the Watercare board paper.

 

9. Please provide the tabulated risk allowance showing full values for
transparency.

 

10. Please advise the clause and framework used by GAH for escalations
which limits the risk to the GAH JV. Further to this, please advise how
and what value the other three tenderers allowed for escalations in their
submissions? Furthermore, please advise why Watercare accepted this
escalation risk?

 

11. In section 3 of the Board paper from January to the Watercare board,
it references suitably of resources. Could these please be provided?

 

12. In the Board paper from January to the Watercare board, it references
GAH’s carries the risk on tunnel spoil drying. Could GAH’s methodology
please be provided to the general public for viewing?

 

13. In the Board paper from January to the Watercare board, it states
GAH’s submission had several items from the sewer connections omitted.
Please advise what these were and the value this increased their tender
submission?

 

14. Please advise the final contract sum with Ghella-Abergeldie?

 

15. Please advise the final contract sum with Ghella-Abergeldie Harker?

 

16. Please provide the tender prices from the other three tenderers and
please state the make up of these tenderers and their capacity?

 

17. Please advise the price for the Grey Lynn tunnel and the other three
tenderers price for these additional works.

 

18. Please advise how liquidated damages could be applied to this JV and
what the dollar value is on daily liquidated damages against the JV?

 

19. Please provide the contract construction programme for the central
interceptor project between Watercare and the Ghella-Abergeldie JV?

 

Yours faithfully,

 

C Stuart C

 

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From: RFisher (Rob)


Attachment LGOIMA Response to C Stuart C 21 June 2019.pdf
488K Download View as HTML

Attachment LGOIMA Response to C Stuart C Appendices 21 June 2019.pdf
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Good Afternoon C Stuart C
Attached is the response from Watercare Services Limited to your Official Information Request dated 25 May 2019

Rob Fisher
Company Secretary

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