Government seeks investment to build Northland Expressway, one of New Zealand’s most expensive infrastructure projects

The Government is looking for investors to help build the first section of the Northland Expressway, which, when fully complete, will link Auckland to Whangārei with four lanes of expressway-quality road.

The road, once fully complete, is estimated to be one of New Zealand’s most expensive infrastructure projects, with the Infrastructure Commission estimating the project will consume one dollar in every 10 spent by the Government on infrastructure over the next 25 years – excluding maintenance and renewals.

The first section will connect with the expressway north of Auckland, which currently ends at Warkworth, taking the road to Te Hana, a journey of 26km. It will include an 850m-long twin bore tunnel in the Dome Valley and three interchanges located at Warkworth, Wellsford and Te Hana.

Transport and Infrastructure Minister Chris Bishop said Cabinet had approved NZ Transport Agency Waka Kotahi (NZTA) to move to the next stage of procurement for the road, one of the Roads of National Significance, and agreed that the project will be delivered as a Public-Private Partnership (PPP).

Bishop will open expressions of interest in the projects at the Government’s infrastructure investment summit in Auckland this week, where he hopes to attract partners for this PPP, and others. Attendees at the firm include firms who collectively have more than $6 trillion under management.

“The project is a significant opportunity for New Zealand’s infrastructure sector, as well as international investors flying in for the NZ Infrastructure Investment Summit,” Bishop said.

Biship said the rest of the project will be built in stages, and “sections two and three, including an alternative to the Brynderwyn Hills, will be announced soon”.

He said detailed design and construction for the road would start in late 2026.

A completion date for the project will be confirmed following procurement, but is expected to be around 2034, the Government said. It is expected to make use of the fast-track law and changes to the Public Works Act announced over the weekend, which are meant to incentivise people selling their land to the Government for public works by making additional payments for early sales. The changes also limit appeal rights.

Green Party transport spokeswoman Julie Anne Genter, a long-time critic of the road, told the Herald the Government needed to be upfront about the cost of the road.

“The Government has cancelled the inter-island ferries, public housing, hospital builds and a decent school lunch programme – yet it’s happy to sign the country up for many billions in debt for 24 kilometres of a new highway. How many other public services and infrastructure will be cut to pay for their pet road projects?

“The Government needs to front up and be transparent with New Zealanders on how much this project is going to cost. Will the road be tolled, and if so, how much will it cost users and the rest of New Zealand? This is a project with a high price, and all previous studies showed the cost outweighs the benefits. It’s a fantasy that direct user tolls will cover the cost,” Genter said.

Last year, the Herald published documents from the Infrastructure Commission about the Northland Expressway.

The documents warned that the road, once fully complete, would dominate the Government’s capital investment plans, crowding out funding for “roads, hospitals, schools, defence, justice, public admin, etc”.

The PPP model means the Government will not likely have to pay for the road upfront, but will probably be on the hook for regular payments to the road builder, as is the case with New Zealand’s existing PPP roads like Transmission Gully. These costs may be reduced by tolling road users, although it is unlikely tolls for the road would be set at a rate high enough to fully cover its costs.

The proposed Northern Expressway.

The Government is keen that the upcoming summit take a bipartisan approach to infrastructure. Labour’s finance and infrastructure spokeswoman Barbara Edmonds will be at the summit.

Labour leader Chris Hipkins is sceptical of the Government’s intent to follow through on its bipartisan intent.

“Chris Bishop sort of said that he wanted more bipartisanship and the minute that it’s offered, he chooses to attack us. Christopher Luxon can’t answer a question on bipartisanship without attacking the Opposition. If they want more bipartisanship, we’re open to that,” Hipkins said.

Thomas Coughlan is Deputy Political Editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.