US$613 million new New Zealand road funding budget

New Zealand’s Government is budgeting an extra US$613 million for road development works in 2024. This comes in addition to the $12.7 billion budgeted in the Roads of National Significance (RoNS) programme between 2024 and 2027.

The original Roads of National Significance (RoNS) programme was intended to speed road construction in New Zealand between 2009 and 2017. As this was a success, the current administration has revived the RoNS programme in a bid to further support economic growth and productivity, reduce congestion, improve safety, support housing development, and provide a more resilient roading network.

The Coalition Government’s priority for investment in the draft Government Policy Statement (GPS) on Land Transport is to support economic growth and productivity and ensure our land transport system allows people and freight to move quickly and safely, according to Transport Minister Simeon Brown. “Delivering on commitments in our Coalition Agreements, we are re-introducing the successful Roads of National Significance (RoNS) programme, with 15 crucial projects to support economic growth and regional development across New Zealand,” he said.

“The RoNS projects previously built by National are some of New Zealand’s most successful State Highway corridors, reducing congestion and improving safety. Independent analysis has found the construction of eight new bypasses, between January 2009 and December 2016, resulted in up to a 37% reduction in deaths and serious injuries across those roads.

All RoNS will be four-laned, grade-separated highways, and all funding, financing, and delivery options should be considered to deliver them in stages as quickly as possible.

“The use of alternative revenue, funding, and delivery models will also support delivery of the RoNS. This includes Public Private Partnerships (PPPs), increased use of tolling, ‘Build, Own, Operate, Transfer’ equity finance schemes, and value capture, to generate additional revenue and deliver infrastructure in a more efficient manner.

A separate funding package worth $575.6 million has been set for road repair and maintenance works in North Island to address issues caused by severe weather in 2023.