The Government has signed off on New Zealand's biggest ever public-private partnership, clearing the way for construction to begin on the first section of the Northland Expressway between Warkworth and Te Hana at an estimated cost of $3.649 billion.
Transport Minister Chris Bishop announced today a deal had been reached, with the Crown signing a Project Agreement with the Northway consortium to design, build, finance, maintain and operate the 26km, four-lane road.
The grade-separated route, one of National's flagship Roads of National Significance and the first stage of the Northland Expressway, includes twin 1km tunnels through Kraack Hill in the Dome Valley, 15 bridges, two underpasses and 12 wetland stormwater basins.
Bishop said the deal represented "good value for taxpayers" with a net present value coming about $251 million under the $3.9b Public Sector Comparator Cabinet signed off in March last year.
Detailed design, site mobilisation and early works are due to begin in the coming months, with main construction starting in November 2027. The road was scheduled to open in 2033, with full completion in 2034.
Northway — led by Spanish firm Acciona, with Downer New Zealand and AECOM as local partners — would be responsible for the road for 25 years after it opened.
Bishop called it "one of the most significant infrastructure investments this Government is making", saying it would put jobs and safety upgrades into a region he said had "incredible potential".
The Government said the finished road will prevent 145 deaths and serious injuries over its lifetime, cut travel times by seven to 10 minutes, reduce weather-related closures by more than 1000 hours, and take about 1000 heavy vehicles a day off the existing route through Wellsford and Te Hana.
The Warkworth to Te Hana section is the first of three planned stages of the wider 100km Northland Corridor connecting Auckland and Whangārei.
1News reported earlier this month the Government pulled several other flagship roading projects into a slower delivery track amid fiscal pressure, including the remaining sections of the Northland Expressway beyond Te Hana.
Cost details for the project were withheld throughout the procurement process, with the Government citing commercial sensitivity until financial close was reached.
Transport Ministry and NZTA officials had refused Official Information Act requests for the project's cost estimate and benefit-cost ratio while negotiations were under way.
Chief Ombudsman John Allen upheld that decision in May, accepting officials' argument that releasing the figures could affect the ongoing negotiations — despite acknowledging there was "significant public interest" in them being made public.
Road tolls of up to $4.50 for cars and $9 for trucks
The affected projects include Sections 2 and 3 of the Northland Expressway and Auckland's East-West Link. (Source: 1News)
Today's announcement did not mention tolls but NZTA consulted publicly between March and April on a proposal to toll the road once it opened.
NZTA said "no tolling decisions have been made" and any decision would be subject to separate Government consideration following the consultation.
Under the proposal consulted on, motorists would pay at two electronic toll points on the 26km route, with light vehicles charged between roughly $1.50 and $4.50 depending on how many gates they passed, and heavy vehicles paying up to $9.
NZTA's consultation material indicated the toll could run for as long as 35 to 60 years, with revenue used to help meet the ongoing Unitary Charge payments owed to the Northway consortium.
Northway beat two rival bidders — one led by French firm VINCI, the other by Australian-based Plenary — to the contract, after being confirmed as preferred bidder in May.
Bishop thanked the unsuccessful bidders for their participation and said he looked forward to visiting the site once construction was underway.
The project agreement runs until 2058, when the road would be handed back to NZTA.
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