Plug pulled on second Tasman cable

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Only one compliant tender received

By Randal Jackson | Wellington | Thursday, 7 May, 2009

The plug has been pulled on development of a new trans-Tasman cable to improve the resiliency of New Zealand's connectivity.

As part of the 2008 Budget, $15 million was allocated to support the development of the new cable. The Research and Education Advanced Network New Zealand (REANNZ) was appointed as lead agency for the project and to act as an anchor tenant.

REANNZ chief executive Donald Clark says there were only four responses from the national and international supplier community to a request for information, and only one offered a solution that was compliant with the qualifying criteria.

“As a result, and following discussions with officials, REANNZ has decided not to proceed to issue a request for proposal for the project,” Clark says.

The compliant response was from Kordia but Clark says that because Kordia’s cable project is still in the planning stages, REANNZ has decided not to negotiate directly with Kordia “at this time”.

”REANNZ is now evaluating its on-going international connectivity options to ensure trans-Tasman connectivity for KAREN members after September this year,” he says.

“We will work closely with Ministers to agree the best course of action that will satisfy our requirements and any government policy objectives.”

Steven Joyce's office was not prepared to comment until a Parliamentary question is answered on the subject later today.