Christchurch City Council votes to increase budget for Te Kaha multi-use arena

Having received a strong favourable response from the public, Christchurch City Council has voted to increase the budget for the city’s multi-use arena to $683 million and will commit to a design and construction contract with lead contractor BESIX Watpac that will see building get under way by the year’s end.

Back in 2020, Christchurch City Council and the New Zealand Government formally signed off on a joint funding agreement for the city’s new multi-use arena with both parties having agreed to contribute a total $473 million towards the cost of the new venue, with the Council committing $253 million and the Crown $220 million.

Moving forward, following Council's decision to increase the budget, BESIX Watpac Chief Executive Mark Baker notes the stadium will be one of only two in the world with a fully enclosed roof and natural grass playing field. The stadium will also be built to withstand Christchurch seismic activity not only on completion but during construction.

Council is also future-proofing this world-class entertainment venue for Esports.

Te Kaha Project Delivery Limited were able to secure a fixed price contract for the design and construction of the arena, which means the Council is protected from the risk of further cost escalations.

Christchurch Mayor Lianne Dalziel advised  “Christchurch is the largest city in the South Island and it should have a multi-use arena where top international acts can perform and the All Blacks, the Crusaders and other sporting greats can play. We also need to be preparing for the future of entertainment and Esports is taking off around the world.

“That was the strong message we got from the public during the consultation process.

“The cost of the arena is much higher than we envisaged when we first began planning for this project. But no-one could have foreseen the global events – the COVID-19 pandemic and the war in Europe – which have disrupted supply chains, pushed-up commodity prices and led to an over-heated construction market.

“The reality is that we cannot build the type of multi-use arena that we want for Christchurch for the money that we have on the books. Unless we are willing to significantly scale back the size and scope of the arena, we have to increase the budget.

Mayor Dalziel thanked the Te Kaha Board for all the work they have done in giving Council “certainty on the costs, scale and scope of the project, which means the Council is now in a position to enter into a contract with BESIX Watpac so they and the Kōtui Consortium can get on with the job of building us a world-class multi-use arena in the heart of our city.”

Mayor Dalziel added “with this arena, the days of Christchurch being bypassed for big entertainment and sporting events will be over.

“We are also future-proofing this world-class entertainment venue for Esports, which in terms of global audience is on an exponential curve. You can have 30,000 people in a stadium and millions online, all participating in the same event.’’

BESIX Watpac Chief Executive Mark Baker says the decision to move ahead with the project and realise the Council vision for a landmark multi-use stadium, capable of facilitating world-class sporting matches and international entertainment acts, will be celebrated now and into the future.

Baker says BESIX Watpac will continue to work with Christchurch City Council and Te Kaha Project Delivery Limited to closely manage the delivery and the construction timetable.

The company has already let trade packages for early works and will continue to lock-in local trades and suppliers early to secure works certainty and manage cost well ahead of the construction schedule.

Image: Credit Christchurch City Council