Government confirms $812m of funding to rebuild earthquake-damaged SH1 around Kaikoura

The Government says it intends to have State Highway One north and south of Kaikoura restored by the end of the year. Photo / pool

The Government has today confirmed its commitment to spend up to $812 million in fixing the earthquake-damaged main highway north and south of Kaikoura.

Finance Minister Steven Joyce earmarked $812m of new capital spending to rebuild State Highway 1 last month.

And in today's Budget, Transport Minister Simon Bridges confirmed the capital spend commitment to reinstatement of State Highway One north and south of quake-hit Kaikoura, describing it as an "essential investment".

It was also revealed that KiwiRail will receive $450m over the next two financial years, with the restoration of the quake-smashed South Island Main Trunk Line north and south of Kaikoura "a key priority" for the Government.

"KiwiRail has been making excellent progress clearing slips, obstructions, and reinstating the rail track so that this essential connection can open by the end of the year," Bridges said.

KiwiRail's repair bill is estimated to be as much as $400m but much of that will be covered by insurance.

The Government's latest forecast cost of rebuilding the road and rail corridors in and around Kaikoura is between $1.1 billion and $1.3b.

It still hopes to have the critical road and rail corridor reopened by the end of the year.
Despite SH1 south of Kaikoura reopening days before Christmas, heavy autumn rain closed it at Easter, and it is yet to be reopened.