$NZ500m hole in Christchurch rebuild

Christchurch has underestimated its cost of earthquake repair by at least half a billion dollars. Source: AAP

CHRISTCHURCH City Council faces a blowout of at least half a billion dollars of its share to rebuild the earthquake-damaged city, according to an independent report.

A report by KordaMentha, released on Wednesday, says the council faces a bill of $NZ4.135 billion ($A3.85 billion) to help rebuild the city following the deadly 2011 quake - $NZ534 million more than the council itself estimates, over three years.

However, it warns the hole in the accounts is likely to be even bigger because it believes the council has overestimated its $NZ1 billion insurance payout and costs will likely rise.

But the council says it is not surprised by the $NZ534 million figure and admits that its $NZ3.6 billion estimate was overly optimistic.

It may ask the government to cough up more.

Mayor Lianne Dalziel says its cost-share agreement with the government allows for a review of how costs are shared.

"Irrespective of where the figures finally land ... I can assure Christchurch residents that this council is going to ensure that this debt problem is dealt with responsibly."

The council had released the report to ensure an open process, and says the government was given the report two weeks ago.

But Canterbury Earthquake Recovery Minister Gerry Brownlee says he is disappointed the council chose to release the report and he doesn't know enough about it.

He says he only got the latest version on Tuesday.

He had some concerns about some data and assumptions KordaMentha has made and has asked for an independent review of the independent review of the council's estimates.

That review will take about two weeks.

"Releasing the report today raises many more questions than we are presently able to answer."

The Greens say the shortfall shows the council can't afford to pay all of its share for the big-ticket items being pursued by the government, especially a $NZ253 million covered stadium.

"If money needs to be saved, then the super-sized 'anchor projects' should be the first to be cut," said Christchurch spokeswoman Eugenie Sage.

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