And then wage and price growth is not even included in the calculation. More on that later. In any case, ensuring the city’s population has clean water is expensive. Very expensive. The price of Oslo’s new reserve water is approaching NOK 30 billion. People in Oslo will notice that in their wallets. The giant project is the most important reason why the water and sewerage fee will increase sharply over the next four years. – Not a penny more Environment and Transport Council Marit Kristine Vea (V) informed the city council about the latest cost gap in August. It was NOK 2.8 billion and will seize most of the reserve. – A new water supply is a necessary project for Oslo, but it should not cost a krone more than it has to, Vea told news then. 70 per cent increase Now the city council has formally decided to get rid of the reserve. At the same time, they inform that the last cost gap in isolation will result in a NOK 379 higher water bill in the peak year of 2028. In total, the water and drainage fee will increase by NOK 4,276 over the next four years – or almost 70 per cent. In addition, there is VAT. The consolation for households is that the VAT on water and sewage will be reduced from 25 to 15 per cent if the government gets its way. “Innmaten” burst At the same time, the city council explains in more detail the reasons for the billion-dollar crack. It turns out that the one and only is due to one of four sub-projects, more precisely the “entrails” in the water treatment plant at Huseby. The price has increased from NOK 2.5 to over NOK 6 billion, i.e. by NOK 3.5 billion or 137 per cent. The other parts of the new water supply project are on or below budget. Complex project The project consists of four large works or contracts: Raw water tunnel, i.e. tunnel for untreated water, from Holsfjorden in Buskerud to Huseby Blasting of the mountain halls for the water treatment plant under Husebyskogen The treatment plant itself at Huseby with concrete and construction engineering works, machine and process installations and electrical systems. The tunnels that will carry clean water on to the city’s population – The water treatment plant is the most complex part of the project. Unfortunately, it turns out that the cost calculations for this sub-project have not been good enough, says Director of the Water and Wastewater Agency, Anna Maria Aursund. VAV CHIEF: Anna Maria Aursund is director of the Water and Sewerage Agency. Photo: Javad Parsa / NTB We point out that the figures in this case and in the city council’s report are based on 2020 kroner. If we factor in wage and price growth since then, the price of the underground treatment plant at Huseby is NOK 8 billion. Will learn lessons Oslo municipality will now learn lessons from the project. – It is important that the basis for investment decisions in Oslo municipality is of high quality, so that the decisions are based on the most realistic cost possible. – For the water treatment plant, this basis was not good enough, states responsible city councilor Marit Kristine Vea. She adds that it is difficult to estimate the price of something with which you have little experience. Although water treatment plants are being built in Norway, the dimensions and complexity of the underground plant at Huseby are distinctive, she says. The city council will now assess whether the experiences gained there can be used to improve the work with future investment projects in Oslo municipality. EXPENSIVE OFFER: The treatment plant in the mountain halls at Huseby will be expensive. Photo: Helle Mjøs Published 12.11.2024, at 06.46
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Cost gap of 137 per cent – Oslo people have to pay even more for water – Greater Oslo
