O2NL funding still needs Govt tick
Construction of the Ō taki to north of Levin highway (O2NL) is on track to start in 2025, but funding for the roading project is still awaiting signoff from the Government.
Waka Kotahi NZ Transport Agency announced last week that the project had reached a key milestone involving the lodging of notices of requirement and resource consent applications with the councils involved.
The project, which will become the new State Highway 1 through Horowhenua, is part of the Government’s transformational New Zealand Upgrade Programme.
But the Government has yet to green-light funding for the road.
Waka Kotahi’s national manager of infrastructure delivery, Mark Kinvig, said with consents lodged and the project moving into the pre-implementation phase, construction was on track to start in 2025.
It should take about five years to complete. ‘‘Like most major infrastructure projects in New
Zealand and around the world, the project is facing significant cost pressures driven by volatile global inflation,’’ he said.
‘‘For example, in the past year Waka Kotahi has seen the cost of construction materials going up as much as 45%, labour costs have risen 7.5%, diesel was up 90% at peak, and bitumen prices have risen by more than 100%.
‘‘Waka Kotahi has provided ministers with advice on the impacts of these cost pressures on the wider NZ Upgrade Programme, which [the highway] is part of.
‘‘This information will be considered by ministers as part of their decision on approval of the detailed business case for the project, which was submitted recently.’’
Kinvig said questions about the timing should be directed to Transport Minister Michael Wood’s office.
Wood did not respond to a request for comment.
Horowhenua District Council chief executive Monique Davidson said the council was eagerly awaiting a decision from the Government that would secure the full funding required for this project.
She said the consenting milestone signified the start of the process for the project to receive the required Resource Management Act approvals.
‘‘This step in the process is solely focused on assessing the environmental effects of the proposal and ensuring that these effects are appropriately managed. It does not cover matters such as funding.’’
The notice of requirement designation would affect 109 property owners. Kinvig said Waka Kotahi had been working with potentially affected property owners since 2018.