The Queenstown Lakes District Council announced today (Thursday) that it had consented to its contracted engineering and management services transferring from Imtech Limited to a company to be called Alpine Infrastructure Management Limited (Alpine).

The transfer will take effect from 31 March, 2005.

Imtech Limited is currently contracted by the Council for engineering services until June 30, 2008.

The Council has taken a 20 percent share in the new company, with the owners of Duffill Watts and King Limited (DWK) taking the majority shareholding of 80 percent.

"Council had to choose between allowing the contract with Imtech to run its course, to 2008, or to negotiate a better deal for the community now, through DWK," Mr Field said.

The Council had substantially re-specified the contract and settled on a shareholders agreement that gives the Council direct control over all the activities of Alpine.

A rigorous evaluation process was undertaken by a working party of Alan Bickers (independent consultant) James Hadley (local engineer) Peter Gray (retired Wanaka councillor and accountant) and QLDC deputy chief executive Stewart Burns, which led to a recommendation that this deal was superior to the other limited option available.

"I am entirely satisfied that through the efforts of all parties the Council has managed to ensure value for money for the community. That has been the priority here," Mr Field said.

The proposal would achieve a degree of 'in house' ownership for the Council, supported by the resources and expertise of DWK, which brought knowledge of the district and extensive local government involvement to the partnership.

The new contract will be known as Contract 467, replacing the previous Contract 330.

"Contract 467 will be for an initial term of five years with strong provisions for early termination if standards are not achieved," Mr Field said.

The new arrangement would separate the ownership of engineering management from the ownership of Lakes Contract Services.

"I would like to take this opportunity to thank the past and present staff of Imtech for their efforts since 1998 and look forward to working with them through the new company," Mr Field said.

The Council was grateful to Imtech managing director Chris Gregory who would support the new company for three months but then planned to pursue other interests.

The basic terms of the contract, including financial, were set out in the attached report.

ENDS

For further information please contact Duncan Field 03 441 0499.

By: Tamah