The Government has agreed the $244 million Harbour Link bridge in Tauranga should be partially funded by tolls.
It has also approved another $150m for other transport projects in the Bay of Plenty.
Transport Minister Pete Hodgson today said the Harbour Link would be partially funded by tolls, which meant the bridge should open in 2009.
Cabinet had capped the level of tolls at $2 per car and $4 per truck but had allowed for lower tolls according to the time of day, direction of travel or other reasons.
"Without tolling we would be waiting more than 10 years to get started, because this is a $250 million project, give or take," the minister said.
Half the capital cost would be funded from debt, with Transit borrowing meaning the new link would be designated a state highway, he said. The other half would be funded from the National Land Transport Fund.
He also said today that the Government would spend an additional $150m on Bay of Plenty land transport.
It was programmed to be available from next year and would be concentrated in the four years from 2008/09.
"This is probably a higher figure than most had anticipated and it is higher than we had initially anticipated. But the needs of the region are many and the cost of not getting ahead of the projected growth are considerable."
Apart from the Harbour Link and central corridor, the investment priorities were:
* The eastern corridor, bypassing Te Puke and servicing the growing urban development towards Papamoa;
* Enhanced public transport, to provide a base for increased patronage in Rotorua and Tauranga;
* Transport demand management for walking and cycling and also business and school travel plans;
* Further progress on key arterial routes, enhancing local roads, providing route security in the eastern Bay of Plenty and further road safety improvements.
- NZPA
Tauranga Harbour Link bridge to be tolled
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