New Zealand government, Christchurch council reach cost-sharing agreement for quake recovery

The New Zealand government has reached a cost-sharing agreement with the Christchurch City Council for repairs made as part of a recovery plan for the area that has been hit by several earthquakes over the past few years, including a major one in 2011.

The Christchurch Central Recovery Plan, announced last July, sets out a plan for future development in the city.

“Today’s agreement will see the Crown fund $1.1 billion of projects in the Christchurch CBD, and the Council $765 million,” Canterbury Earthquake Recovery Minister Gerry Brownlee said in a statement Thursday.

“We’re talking today about an investment of $4.8 billion – $2.9 billion of it coming from the Crown, and $1.9 billion committed by the Christchurch City Council,” he said.

“As more below-ground infrastructure has been opened up and reviewed, better knowledge of the scale of damage and likely cost of its repair and replacement has become known,” Brownlee said. “We now believe that will cost a combined $2.9 billion – $1.8 billion being the best estimate of the Crown’s likely contribution, and $1.1 billion being the Council’s share.”

In May, the Insurance Council of New Zealand reported that total quake-related claims in the area settled so far consisted of $4.87 billion in commercial claims and $2.36 billion in residential claims.