​Costs Increase to Complete Nukumaru Station Road

An additional budget of up to $2 million to complete the Nukumaru Station Road extension project was approved by Councillors at Monday’s (3 April) Council Meeting.

Acting group manager of infrastructure services Cath Sheard says the increase was mainly the result of a 30% surge in the cost of roading construction in addition to other factors such as legal costs, changes to rail crossing standards and design variations.

The increase in budget takes the total cost for the project to just over $12 million, two thirds of which are being paid for by the Government through its Shovel Ready Projects Fund and Waka Kotahi - NZ Transport Agency.

South Taranaki Mayor Phil Nixon says while the cost increase was disappointing it was not unexpected given the huge cost increases the road construction industry had experienced over the last couple of years.

It’s not ideal but we are fortunate in that the bulk of this project is being funded by the Government,” he says.

“This long-awaited project represents a major investment in the southern part of the District which guarantees security of access for residents and business in the event of future flooding. The new road is a vital access for the Waiinu Beach community, the ongoing financial viability of the Waitōtara Silver Ferns Farm food processing operation and other businesses in the area. It’s an investment in economic growth and jobs and will ensure the community has a secure route in and out of the village,” he says.

Mayor Nixon says the additional $2 million will be funded by way of a loan, repayment of which will be spread out over a number of years, so the overall impact on rates is 0.23%. In addition, Mayor Nixon has approached the Government for additional funding.

Physical work on the road should be complete by the end of July, although it will take several months after that to complete the legal designation process.