Transcript
Te Mato Vai is one of the biggest ever infrastructure projects undertaken in the Cook Islands.
But there have been problems ever since the China Civil Engineering and Construction Company finished its work on phase one of the project in 2017.
After a leak was detected, the Cook Islands government commissioned an independent review, which found 17 kilometres of pipeline needed replacing.
Initial cost estimates for the $US40 million project have blown out to $US60 million.
Garth Henderson, the Cook Islands finance secretary, says the contractor has "failed to deliver" what was promised.
"They were contracted to deliver a project of a certain design and standard and we believe based on the evidence that they haven't delivered."
He says the repairs are estimated to cost nearly $US9 million.
Remedy work will start in June, with the first phase due to be completed by the end of the year.
Mr Henderson says the concerns have been discussed at regular meetings between the Cook Islands' Finance Ministry and the New Zealand and Chinese governments.
"We're a small country, a small government, we have limited capacity. This is the biggest project we've done since 1974. I must say there have been mistakes on the government's side, but we're in a position where we can't accept the situation as it is."
Last week, the Cook Islands found itself at odds with the Chinese contractor, when it broke its silence on the dispute.
Project manager Gao Dong is quoted in the Cook Islands News saying the request to replace 17 kilometres of pipeline is "inappropriate".
"The pipeline as is, has been built and tested, approved, paid for and accepted as completed. It is ready for service and all tests done to date show that the pipeline is serviceable as required by the contract."
Mr Gao told the Cook Islands News the government has misinterpreted the findings of the report they commissioned.
Te Mato Vai has also become a sticking point for the opposition Democratic Party in the Cook Islands.
Party leader and MP for Rakahanga, Tina Browne, says there needs to be an independent investigation into every part of the project.
She says it's disappointing the government review last year hasn't been made public.
"This must be one of the biggest disasters in our country, where you have Stage One, they sign up a contract for $23 million, and now they're saying well, there's something wrong with it."
Some anaylysts say a resolution to the dispute is complicated by differing approaches to aid infrastructure by New Zealand and China.
Jonathan Pryke of the Lowy Institute says there's pressure on trilateral aid projects with China to work because they are relatively new to the Pacific region.
"When things do go sideways, it does also make it harder to respond. Donors have been working together for a very long time, so it's nothing that can't be overcome, but I think particularly with China, with a new partner, it would become more challenging."
But the dispute over Te Mato Vai is unlikely to be resolved quickly, with the Cook Islands government saying last month it plans to seek legal redress against the Chinese contractor.
The finance secretary, Garth Henderson, says the terms of reference for legal action are being drafted.
