HYDRO-ELECTRIC POWER.

Taranaki Daily News, 20 December 1921, Page 3

HYDRO-ELECTRIC POWER.

THE NEW PLYMOUTH SCHEME. FINANCIAL POSITION. The position of loans raised in connection with the New Plymouth hydroelectric extension is dealt with by the general manager (Mr. F. T. Bellringer) in his usual report to the council. The actual receipts to date in connection with the works total £85,257 4s, which is made up of sale of debentures £40,U00 loan for the full amount, sale of debentures loan, £21,700 12s €d, overdraft £72,000 loan account £13,556- Ils fid, sale debentures £60,000 loan £ 10,000. Moneys arranged for total £74,167 9s Gd, of which £50,000 is the balance of the £60,000 loan. Loans authorised but not arranged for, which include the £9,000 loan, amount to £ 16,075, bringing the grand total to £175,550 4s. The sale of surplus land is not taken into account, the report states, as it is doubtful whether the land will be sold in time for the money to be used in connection with the works.

“On the expenditure side (the general manager continues), owing to the works being actually under construction and far from completion we must still deal in estimates.” The estimates for the partial scheme upon which the £60,000 loan was based are then given in detail the total being £172,000, to which is added work comprised in the £9,000 loan making a total of £lBl,OOO. It includes the following items: No. 1 tunnel £13,331, No. 2 tuhnel and pipeline £46,024, pipes £20,360, engineering allowances £4375, contingencies on civil engineering portion and compensation £6440. The electrical portion of the work is set down at £31,635, of which the turbine and alternator account for £9,375, and the transmission line to Inglewood at £lO,OOO. Other items in the schedule are, land purchase 555 acres £ 14,000, first yeat’s interest and sinking fund £10,900, cost of raising loan £5,335, additional contingencies added on recommendation of general manager £12,000. The report concludes: —It was thought that this would leave ample margin, but unfort inately, as pointed out in my report of August last, in the estimates of the electrical portion of the work, provision was not made for further expenditure anticipated after the completion of the works for purchase of extra turbines and generators, reticulation lines, meters, etc., and alteration of turbines.' The cost of these items was estimated in my August report at £25,000, but 1 understand that £20,000 will. give ample margin. These items therefore complete’ < wipe out the extra contingencies allowed and leave very little margin to work upon. With regard to the civil engineering portion of the works the resident engineer has at different times expressed his anticipation of being able to complete

the wo k within t.je estimates. To do this, however, considerable savings will have to be effected upon the tunnel and excavation works, r.s the cost of the access tramway, the plant in connection therewith, -and the cost of the housing is greatly in excess of the small amounts allowed for roading and housing in the estimates. From the figures given it will be seen that at October 31 last we had some £74,006 m sight to work upon. This may appear a very large sum, but in order 10 reduce the possibility of financial diflimilties at a later date I would recommend that steps be taken to raise the balance of the £72,000 loan. This will take some tin e and it would be advisable for the council to be clear with its smaller loans before coming on the market with the £1142,000 consolidation loan.