Protracted dispute over asbestos costs leaves NZ power station partially demolished.
The dismantled Marsden B power station sits on a wharf at Marsden Pt after a High Court judge ordered it stay there while a legal stoush is resolved between a Northland engineering firm and an Indian telecommunications giant.
South Pacific Industrial Ltd (SPI) is taking United Telecoms Ltd (UTL) to court claiming the Indian company owes it $2.5 million after SPI’s work on dismantling the mothballed power station took longer, and cost more, than anticipated because of the unexpected discovery of asbestos.
The High Court has put an injunction on UTL shipping the dismantled power station out of Whangarei until the legal dispute is settled.
UTL bought Marsden B power station from Mighty River Power in 2008, with the view of dismantling it to take to India to fire it up there. SPI won the contract to dismantle the plant and pack the component parts for shipping to India and started work in June 2011.
However, work stalled three days later when SPI discovered more asbestos than had been expected at the site.
After agreement between the two parties work continued, but a dispute arose as to the amount SPI should be paid for the additional work.
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