Construction is underway to improve the safety of SH29 near Tauriko in the Bay of Plenty which will help unlock large sections of land for development.
The enabling works will allow more than 2000 homes to be built within Tauriko West, and support the industrial development of the Tauriko Business Estate.
A new roundabout at SH29 and Redwood Lane will connect to the business estate and provide access to the southern part of Tauriko West.
Every day approximately 21,000 vehicles, including nearly 3000 heavy commercial vehicles, travel along SH29 between Redwood Lane and Cambridge Road, to and from other parts of Tauranga and the wider region.
The road is frequently congested and has seen some serious crashes.
It's expected to cost $264 million which includes nearly $40 million for design, consent and property purchase.
The remaining money is for construction costs including upgrades to roads, water, wastewater and storm water systems.
NZTA says the project is funded by through Tauranga City Council, NZTA, Infrastructure Acceleration Fund and developers.
Transport Minister Simeon Brown said the project has been years in the making and will improve safety and development.
“Once completed, the SH29 upgrade works near Tauriko will unlock at least 2400 homes from 2026," he said.
"These upgrades are a key first step of enabling the wider Western Corridor growth opportunity, which is around 25,000 homes over the next 50 years."
The minister said SH29 is a significant route, and vehicle numbers are expected to double by 2048.
“Wider SH29 Tauriko corridor improvements have also been prioritised as a Road of National Significance (RoNS) in the draft Government Policy Statement on Land Transport (GPS) released recently," he added.
Tauranga's population is projected to reach 210,000 by 2050 - an increase of 30%
The council said it needs around 30,000 new homes over the next three decades and a transport system to service the demand.
Commission chair Anne Tolley says there are five major projects happening in the city, which is causing disruption.
"We are talking very closely with the government about how that is staged because apart from the disruption you've also got your ability to deliver it."
She said there are plans to connect the major pieces of infrastructure and the council's working closely with government to make sure that happens.
The work is expected to take about three years to complete.
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