Public-private partnership to fund highway in New Zealand

Date: 23/11/2012

A road infrastructure project in New Zealand has been given the go ahead to be funded by a (PPP) public-private partnership.

Transmission Gully will include a 26 kilometre highway running between MacKays Crossing and Linden on Wellington's Northern Corridor.

Gerry Brownlee, New Zealand Transport Minister, said that the decision on financing means the project can begin construction in 2014 with the expected completion date being 2020.

Within eight years those in Wellington will be feeling the economic and safety benefits which the new road is expected to bring.

He said: "The (NZTA) New Zealand Transport Agency will repay the cost over 25 years, the road can be built now and the costs can be shared by those who will benefit from the project in the future."

The project has a budget of $1 billion (£0.65 billion) and although a toll may be introduced in order to help recoup some of this funding, it will not be included in the contract between the NZTA and the PPP.

As well as supplying the cash for the project, the minister said that it will also benefit from the innovation which only the private sector can supply.

Mr Brownlee said that the people of Wellington have been waiting for such a route, which cuts out Porirua, Pukerua Bay and Paekakariki, to be built for more than 70 years.

He added: "Wellington is currently reliant on a two-lane highway that has trouble coping in peak times and is vulnerable to closure in the event of crashes and natural disasters.

"It will dramatically improve travel times between Wellington and the Lower North Island."

The Wellington Northern Corridor has been designated as one of seven roads of national significance.

As such these roads are considered by the government to be essential state highways and in need of upgrading in order to reduce congestion, improve safety and better support economic growth in the country.

Posted by Nick Anderson

International Transport News and Sustainable Transport News