Update on transport stimulus projects

Transport projects accelerated by the government as part of the Jobs and Growth economic stimulus package are progressing well, says Transport Minister Steven Joyce who today officially opened the Fairy Springs upgrade in Rotorua – one of the projects to benefit from the scheme.

In March 2009, the governmentfast-tracked almost $500 million of publicly-funded construction projects, including $322 million worth of roading projects around the country.

Mr Joyce says the five larger projects and numerous smaller projects have provided 550 jobs in provincial New Zealand and supported a further 1,200 in associated trades.

“The jobs created and supported by these projects have given a real boost to the regions. The majority of suppliers and subcontractors for these projects were regionally based, using a regional workforce and material so local contractors and their communities would stand to benefit from the increase in work.

“The 550 jobs provided here are over and above the 1,500 people currently working on the government’s Roads of National Significance and the many thousands more already working on the overall road building programme.

“These jobs would not exist if the previous government had its way and scaled back the roading programme.”

Mr Joyce says the government made a commitment to proceed with infrastructure spending not withstanding the current tight fiscal situation.

“We are determined to minimise infrastructure bottle necks to growth as the economy picks up. The Jobs and Growth plan is giving a boost in the short-to-medium term but the improved infrastructure will support more prolonged growth going forward.”

The larger projects accelerated under Jobs and Growth are as follows:

Project	Total estimated cost ($m)	Direct jobs provided	Status
Christchurch Southern Motorway	120	150 – 170	Due for completion early 2013 (accelerated by 10 months)
Muldoon’s Corner Realignment (Rimutaka Hill)	20	35 – 40	Due for completion mid-2012 (accelerated by 27 months)
Hawke’s Bay Expressway – southern extension	15	40	Due for completion in mid 2011 (accelerated by 4 months)
Matahorua Gorge	25	70 – 100	Due for completion early 2011 (ahead of schedule; accelerated by 14 months)
Kopu Bridge	42	35 – 45	Due for completion mid-2012 (accelerated by 14 months)

A further $100 million was allocated to a large number of low cost, high-value projects and safety upgrades around the country (list attached).

Mr Joyce says he’s also pleased to learn that savings have been identified across the larger five projects.

“The original estimate was that these projects would cost $302 million but my latest update is that that figure has dropped to $222 million. Thanks to the hypothecated revenue system, the $80 million saved will go towards other roads projects.”

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