Summarised by Centrist
A failure at the Moa Point Wastewater Treatment Plant in Wellington on February 4 resulted in tens of millions of litres of untreated sewage being discharged into the ocean after an outlet blockage during heavy rainfall.
Water services have been managed by Wellington Water on behalf of the council and operated under contract by French multinational Veolia.
Wellington’s overall water infrastructure backlog was identified as $NZ578 million by 2020.
Veolia was first contracted in 2004 to operate the Moa Point plant and in 2017, took over operation of four regional treatment plants. The contract is valued at $170 million over 10 years. Veolia operates 100 water and wastewater facilities in New Zealand, including facilities in Auckland.
A 2021 independent review of Wellington plants found Veolia had “failed to carry out basic asset management, including regular maintenance.” Equipment was described as obsolete and prone to failure. The review cited understaffing, inexperienced operators and lack of executive oversight.
Wellington Water issued warnings, infringement notices and abatement notices but did not terminate the contract.
In Queenstown, the Veolia-operated Shotover Wastewater Treatment Plant received abatement and infringement notices and an enforcement order after wastewater ponded near the airport. Treated effluent has been discharged into the Shotover River.
Veolia Environnement, listed in Paris, operates in 56 countries and reported about €45 billion revenue in 2024.
The company has faced past controversies, including a US$53 million Flint settlement, disputes in Pittsburgh over lead levels, a US$1.6 million penalty in Massachusetts, a California lawsuit it denies, and UK labour strikes. Wellington has ordered a Crown review over Moa Point.
