Government ditches private partner to build Christchurch Convention Centre alone

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre and will go it alone. 

Work on the convention centre will start immediately for a late 2019 opening - two years behind schedule. 

The original $500 million plan for a major precinct with hotels, office buildings, apartments and shops has been pared back and only the convention centre will be built. 

Funding has been committed to the project but Greater Christchurch Regeneration Minister Gerry Brownlee won’t disclose the figures while the Crown seeks the best possible deal with contractors for final designs and the build.

“An indicative design for the convention centre precinct has been released to give people an idea of what to expect,” Mr Brownlee says. 

The government chose consortium partner Plenary Convention New Zealand (PCNZ), which is made up of Australian-based Plenary Group, Christchurch’s Carter Group Ngai Tahu Property as a private partner to build the convention centre. It committed $284 million. Construction was then expected to begin in 2015, with the centre opening next year. 

PCNZ had done the early design and master planning for the centre, but the parties mutually agreed not to continue working on the project. Other contractors will now be sought to finalise the design and build the convention centre and the government-owned Otakaro will take over PCNZ’s designs and other intellectual property.

The government had been in negotiations with PCNZ since announcing the consortium as its preferred developer. Two months ago Prime Minister Key told The Press the government would not be "bullied into signing off on a deal" and described the negotiations with PCNZ as "intensive" and "tense".

Mr Brownlee says having certainty around this project is important for the city’s forward planning and the government remains committed to a precinct that offers quality accommodation, hospitality and retail to support the convention facilities.

Preparation work such as telecommunication re-routing will begin immediately, Brownlee said, and a section of Gloucester Street from Colombo Street to Oxford Terrace will close by the end of July. Substantial earthworks will begin in October, he said.

(BusinessDesk)