Transport Minister Steven Joyce has given the go-ahead to a half-billion dollar, 23km toll road east of Tauranga.
Mr Joyce made the announcement this morning at a media briefing in Tauranga.
The project was brought forward about seven years by a decision to impose tolls of $2 for cars and $5 for heavy trucks, Mr Joyce said.
Tolling on New Zealand's other roading projects would be considered on a case-by-case basis, he said.
The road will start near Mount Maunganui and bypass Te Puke.
The free alternative, State Highway 2 through Te Puke, is currently New Zealand's second most dangerous road per kilometre.
Mr Joyce said the benefits of the new road were to improve road safety and provide economic benefits.
It would achieve better access to the Port of Tauranga - New Zealand's biggest export port - and create jobs during its construction.
An urban centre the size of Nelson is expected to spring up along the new road.
Joyce approves Tauranga toll road
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