A flood mitigation project in Whirinaki, Hawke’s Bay, will proceed following a new funding package aimed at safeguarding key infrastructure and residential properties impacted by Cyclone Gabrielle.
The government has approved $9 million in redirected funding, while the Hawke’s Bay Regional Council (HBRC) has committed an additional $3 million, enabling the long-delayed project to move forward.
The initiative is designed to reduce flood risk to the Pan Pac Forest Products mill and reclassify 46 flood-damaged homes from Category 2C to Category 1, facilitating recovery for residents and the broader community.
The funding comes after an earlier version of the project encountered significant budget overruns. Initial estimates pegged the cost at $11 million, but subsequent assessments pushed the figure to over $34 million. A redesigned approach has since brought costs down to around $23 million.
The announcement coincides with broader trends in disaster preparedness across the country. Data from the Natural Hazards Commission (NHC) showed a growing number of households implementing protective measures. Meanwhile, insurance sector leaders continue to raise concerns about climate risks driving up premiums and threatening insurability in high-risk locations.
HBRC chair Hinewai Ormsby said the new funding agreement represents a step forward for Whirinaki residents.
“The funding commitments from our council and central government demonstrate our shared belief in the project’s benefits for impacted property owners. Most importantly, it will help them move forward with their lives,” she said.
Tony Clifford, general manager at Pan Pac, acknowledged the importance of the flood protection work.
“I couldn’t ask our employees to go through the aftermath of a cyclone again,” he said.
Design changes to the project involve adjusting the alignment of stopbanks and modifying roadworks, including a more modest elevation of a section of State Highway 2. These revisions eliminate the need to upgrade the culvert beneath the highway, which contributed to earlier cost increases.
An HBRC spokesperson said the redesign uses higher ground to reduce construction intensity.
“The original stopbank alignment that followed the Whirinaki Drain required a new culvert to be built under the State Highway and significant road raising to tie the road into the stopbanks, resulting in the cost blowout,” the spokesperson said. “With a refined design, the cost had been reduced to about $23 million, with the new funding bridging the gap from the original budget.”
Clifford said the mill has resumed 95% of its pre-cyclone capacity, although some operational adjustments are still underway.
“There are a few teething problems but that’s expected with new plants. We are concerned about the winter, with the cost of electricity, but hopefully the recent rain around the country will help ease that,” he said.
The company will also supply fill material from its quarries to assist with the construction of the new stopbanks. Clifford added that the project complements ongoing efforts to manage the river mouth – an essential aspect of flood control.
