Pūhoi – Warkworth highway moves closer

The construction of the Pūhoi - Warkworth Highway that will connect Northland and Auckland has moved a step closer, Transport Minister Simon Bridges says.

“Cabinet has approved the NZ Transport Agency (NZTA) to move to the next stage of procurement as a Public Private Partnership (PPP) to finance, design and build the project,” Mr Bridges says.

NZTA will invite private sector companies to put forward proposals for financing, designing and constructing the highway, with a view to awarding a PPP contract in October 2016.

“The private sector will have the opportunity to bring innovative design, operation and risk management to deliver the project more effectively than traditional procurement methods.

“If, however, the private sector can’t offer value for money, NZTA would instead revert to a more traditional procurement model. Construction without a PPP would likely begin around two years later than under a PPP,” he says.

“The Pūhoi to Warkworth project is the first section of the Ara Tūhono – Pūhoi to Wellsford Road of National Significance.  This critical link will provide opportunities for economic and social development in Northland, providing a better connection for freight, tourism and motorists.

“The Pūhoi – Warkworth project is the second Road of National Significance section to be considered for a PPP. The first, Transmission Gully, will open in 2020, with the PPP model allowing its construction to commence while freeing up around $1 billion of Crown funding for investment in other transport projects,” Mr Bridges says.