Funding uncertainty continues to dog the proposed Transmission Gully motorway with a $600m funding shortfall still needing to be plugged before construction can start. The Govt has committed $405m to the project and has indicated it could use a public-private partnership to help fund the road. However, Wellington Local Authorities and rate payers will still face a huge bill one which regional leaders say cannot be bridged. Wellington city Mayor, Kerry Prendergast, says the highway cannot be built unless millions more in central funding is poured into the project. Though local mayors back the route, they say a new funding formula is needed to get it built.

Oil Price Driving Up Costs. Her concerns are echoed by Roading NZ CEO, Chris Olsen. He says the longer the shortfall remains, the bigger it will become as rapidly increasing diesel costs which will push the 26-kilometre highway’s price up. “In terms of escalation in costs, the biggest risk would be the earthworks at Transmission Gully. That component would use huge quantities of fuel for the scrapers and the bulldozers.” Transit NZ has opted for a slimmed-down version of the proposed highway, a route which is $275m cheaper by trimming one major intersection and a two-kilometre viaduct.

Other Funding Options Possible. National Leader John Key has offered little prospect of any major boost in Govt funding other than saying it will look at increasing the Crown contribution. “It’s a possibility. We need to put it into the mix. It’s a big issue and obviously things can move around. There’s got to be a point where it works.” National may look at other funding options for the project including greater use of debt-funding and relax provisions for public-private partnerships for major projects.

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