Insurance deal paves way for major upgrade at Christchurch wastewater plant

Insurance deal paves way for major upgrade at Christchurch wastewater plant | Insurance Business New Zealand

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Insurance deal paves way for major upgrade at Christchurch wastewater plant

System damaged by fire in 2021

Insurance News

By
Roxanne Libatique

Christchurch City Council has reached an $85 million insurance settlement to address damage to its wastewater treatment plant caused by a fire in 2021.

The fire, which destroyed the plant’s trickling filters, disrupted the sewage treatment process and led to widespread complaints about odours in the area.

The funds will be used to replace two trickling filters, key components of the plant’s operations, with an upgraded activated sludge reactor system. This change aims to fix ongoing odour issues affecting nearby Bromley residents.

Christchurch Mayor Phil Mauger emphasised the importance of moving forward with the project, calling it a “significant milestone.”

“From the day the fire started, the community has been impacted by the loss of these trickling filters; the stench caused by the interim solution was unbearable,” he said.

He said that the settlement allows the council to replace the old trickling filters with a more advanced activated sludge system, which should greatly improve odour control and plant resilience.

The new system will replace the plant’s 50-year-old infrastructure with a technology known for its efficiency in treating wastewater.

Activated sludge reactors are widely used both in New Zealand and internationally, and are seen as a long-term, scalable solution. This upgrade will also reduce emissions and better accommodate future population growth, according to the mayor.

The council’s decision to proceed with the settlement followed extended negotiations with its insurer. The confidentiality surrounding those discussions was necessary to ensure the best outcome for residents and the environment, Mauger said.

New sludge system

Work on designing the new sludge system is already underway, and the installation is expected to take up to three years.

The project’s current estimated cost is $140 million, though the figure may be refined as detailed designs are finalised. Funding for the project is covered under the council’s Long Term Plan, meaning local rates will not be affected.

Mauger said the council will keep the current plant running during the construction period, although operating it in its damaged state does pose challenges.

“We’re getting on with this permanent fix as quickly as we can. Once the new system has been constructed and commissioned, it will address the odour issues that have been experienced for the last three years,” he said.

In the meantime, the council is monitoring hydrogen sulphide levels near the plant to ensure the surrounding community remains informed and updated on the project’s progress.

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