Minister wants report on Waterview alternatives

Transport Minister Steven Joyce has asked officials to investigate alternatives to the proposed tunnel option for the Waterview Connection following a new cost estimate that is significantly more than originally estimated.

The cost of building the proposed twin tunnels was originally estimated at $1.89 billion but has now increased to around $2.77 billion, which includes the cost of debt financing and associated works to SH 16. 

Mr Joyce says that amounts to 1.6% of New Zealand's GDP or between three-and-a-half and four times the total current annual state highway construction budget.

"The Government is committed to delivering a Waterview Connection but wants to ensure the project is advanced in a cost-effective and future-proofed way.

"The other issue besides cost is that the current tunnel proposal is for two two lane tunnels.  This leaves no room at all to cater for increased demand as the road gets busier."

Making the tunnels three lanes now would increase the cost of the proposal to in excess of $3 billion.

In releasing a business case on the Waterview Connection recently completed by the Ministry of Transport and Treasury, Mr Joyce noted that the figure of $2.77 billion includes the cost of funding the project during the construction period.  He says this is slightly unusual, but appropriate given the size of the project.

"A Waterview connection is crucial to the completion of the Western Ring Route but the Government cannot sensibly commit to fund a project of this expense and with these limitations without serious consideration of the alternatives.

"The last Government allowed expectations to be raised about a number of large transport projects, including Waterview, without actually allocating funding to them."

"In fact, just before leaving office, the Labour Government signed off on a decrease in funding for state highways of around 9% while at the same time promising a number of very expensive projects, like Waterview."

Mr Joyce has asked officials to report back on alternative options along the same route in April.

The report will include the construction costs of the various options and whether these have changed as a result of the current world economic situation.

"The purpose of further investigation is to establish the best way forward that ensures value for money for taxpayers and road users, while taking into account the concerns of the Waterview community," says Mr Joyce.

Link: Treasury / MoT Report - Business Case for Waterview Connection: www.transport.govt.nz

Background

The Waterview Connection is a proposed extension of State Highway 20 from Mt Roskill to Waterview to complete the Western Ring Route, linking Manukau, Auckland, Waitakere and North Shore Cities.

The current proposal for the Waterview Connection is to construct twin two-lane tunnels.