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Speaker 1: It was always coming, wasn't it. And here's your next

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Speaker 1: problem to need a Dunean hospital was going to get

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Speaker 1: built for about one point four billion, then it was

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Speaker 1: one point eight. Now it could be allegedly three billions.

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Speaker 1: So the downscales on locals are Ropable Health New Zealand

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Speaker 1: Head of Infrastructure Delivery Blake Leper as well as Blake

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Speaker 1: very good morning to you, Mike. He well, well, thank you.

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Speaker 1: It was it was unfair. This has a vibe about it.

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Speaker 1: This sort of has been coming, hasn't it.

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Speaker 2: I mean, certainly this is a project that has been

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Speaker 2: incredibly challenging, as many big infrastructure projects are. And I

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Speaker 2: think you know, over the last couple of months people

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Speaker 2: have to understand as we've been working through this process

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Speaker 2: that were some very real challenges. So I guess a

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Speaker 2: bit of sweet day to announce that to the public

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Speaker 2: and let everyone know where we are and we've been doing.

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Speaker 1: How does a build go from ten thousand dollars a

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Speaker 1: square meter to thirty.

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Speaker 2: And I think this is I guess one of the

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Speaker 2: real challenge with Greenfield's projects and when we were trying

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Speaker 2: to do something that that was a bit different and

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Speaker 2: quite aspirational you know, it's certainly as we go through

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Speaker 2: these business cases, we tend to learn more about the

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Speaker 2: complexity of achieving what we were trying to achieve, and

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Speaker 2: those additional costs do add up over time.

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Speaker 1: But this is not your fault. You just work for them.

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Speaker 1: I get this, But can you, I mean, you just don't.

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Speaker 1: In life, let somebody go it's ten thousand woops, Now

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Speaker 1: it's not it's thirty without doing something profound about it.

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Speaker 1: Because something's gone wrong, there hasn't it. I get the

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Speaker 1: cost of living, I get inflation, all that stuff, but

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Speaker 1: things don't triple in price.

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Speaker 2: And I mean this has been happening over a very

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Speaker 2: long period of time. We haven't gone from ten thousand

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Speaker 2: dollars a square meter to thirty thousand dollars a square

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Speaker 2: meter overnight. And with yesterday's announcement, you know, this is

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Speaker 2: a project that that costs have been creeping up for

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Speaker 2: a long time. It has been through a number of

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Speaker 2: value management exercises as project teams over the years have

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Speaker 2: tried to make it work. And you know, in this

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Speaker 2: latest round, you know, late last year we will well

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Speaker 2: into the construction of the outpatients building, we were king

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Speaker 2: real price information on what it was costing to build

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Speaker 2: hospital level facilities in Dunedin, and as we started to

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Speaker 2: see those costs coming through, we realized we started to

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Speaker 2: have a problem with what we've been estimating for the

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Speaker 2: larger and patience building and that's when we started to

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Speaker 2: flag concerns the government.

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Speaker 1: Okay, is there any do you believe the three billion?

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Speaker 1: Where did he get that from?

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Speaker 2: I mean stiddenly if you add up all of the

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Speaker 2: costs associated with the facility, So you add up the

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Speaker 2: infrastructure cost, the data and digital which has been funded separately,

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Speaker 2: you look at the costs that we haven't yet worked at,

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Speaker 2: how fund associated with remediation and decommissioning of the old facilities,

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Speaker 2: car parking pathology, that these issues have been talked about

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Speaker 2: in to Needin for a long time and remain unresolved,

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Speaker 2: the connections with the university through what was intended to

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Speaker 2: be an inter professional learning center, and the costs we

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Speaker 2: were seeing come in. Certainly, you know there was a

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Speaker 2: world in which this project could be heading towards those numbers.

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Speaker 1: Okay, what's to prevent it going even higher? And it

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Speaker 1: turns out to be a garden shed.

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Speaker 2: That's what we're absolutely focused on now ensuring doesn't happen.

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Speaker 2: Government's given us a very clear direction around what we

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Speaker 2: need to make the infrastructure component work for and that's

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Speaker 2: what we are now working to. We have that cap

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Speaker 2: we now have to find a solution that gets the

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Speaker 2: best possible facility for Dunedin and the Southern region with

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Speaker 2: that money we've got available.

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Speaker 1: I wish you well with a Blake Leper at Health

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Speaker 1: New Zealand this morning. For more from the mic Asking Breakfast,

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Speaker 1: listen live to news talks that'd be from six am weekdays,

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Speaker 1: or follow the podcast on iHeartRadio.