Shovel-ready funding: 2 wins from 39 pitches by Tauranga, Western Bay councils

Tauranga City Council is planning a staged multi-modal upgrade of Cameron Rd. Photo / File

Perhaps insets:
Tauranga City Council is planning a staged multi-modal upgrade of Cameron Rd. Photo / File A_070820gn18bop.JPG

Work will start on Omokoroa Rd improvements - part-funded by the shovel-ready programme - before Christmas. Photo / Supplied 290920sp-34bop.JPG

By Samantha Motion

Of 39 job-creating infrastructure projects worth more than $1 billion pitched by Western Bay councils to a Government stimulus package, just two have made the cut.

And while one mayor admits being disappointed, the other says he isn't.

In April, the Government called for "shovel-ready" projects that could provide jobs and economic stimulus after Covid-19 to be submitted to an Industry Reference Group led by the Crown Infrastructure Partners (CIP).

The Tauranga City Council submitted 24 projects to the group, totalling just over $1.074b and the Western Bay of Plenty District Council put in for 15 projects worth about $120 million.

The Government earmarked $3b for the scheme and the reference group received 1924 project applications with a combined value over $136b.

Some 802 went to the next stage and about 150, worth $2.6 billion, were successful. A list of announced projects was finalised last week.

The Tauranga and Western Bay councils have one funded project apiece and have been told those are their only successful applications.

The Western Bay was awarded $14m for a package of Ōmokoroa urbanisation and roading projects, announced in August.

Work will start on Omokoroa Rd improvements - part-funded by the shovel-ready programme - before Christmas. Photo / Supplied

It was part of a $28m plan for urbanising the fast-growing suburb, with other $14m to be funded by ratepayers.

Western Bay mayor Garry Webber said the projects would support development in the suburb and create 150 new jobs in the process.

The $8m first project in the package was expected to start before Christmas.

It would see 1.3km of Omokoroa Rd upgraded to urban standard with kerbing, footpath/cycle path, lighting, drainage, utility services and landscaping.

The upgrades would run between Western Ave and Traless St. Matamata-headquartered J Swap Contractors has won the contract.

Western Bay of Plenty mayor Garry Webber in Ōmokoroa. Photo / File

Webber said the council was "disappointed" the other applications to the CIP were not approved as it believed they had merit.

Unsuccessful projects included the Te Puke Memorial Swimming Pool facility replacement, Katikati bypass, and cycleways.

The Rangiuru Business Park - a major new industrial zone planned near Te Puke - also missed out, but got $18m from the Provincial Growth Fund in July.

Tauranga's council was awarded $45m towards the first stage of its plan to transform Cameron Rd for multi-modal transport, a project it said would create about 200 jobs.

Tauranga City Council is planning a staged multi-modal upgrade of Cameron Rd. Photo / File

The project is at the planning stage, with a final design yet to be approved. The first stage is 17th Ave to the CBD.

Tauranga mayor Tenby Powell said the "very significant contribution" had spin-off benefits for the city's books.

"Because the Cameron Rd funding is a grant, it means there will be no impact on debt and no repayments to be funded through rates.

"In our current situation, this is significant as it saves the city in the order of $1.5m a year in principal repayment and interest costs."

Powell, who had previously expressed confidence the council might get some of the waste-related funding it requested, said he was not disappointed to get only the Cameron Rd funding.

"We are still advocating hard for that rubbish and recycling, plus others."

Tauranga mayor Tenby Powell. Photo / File

The council was committed to working with the Government on funding for other projects.

Christine Jones, the council's general manager of strategy and growth, said it was "unfortunate" other projects had not made the final shovel-ready list.

Projects that missed out included upgrading the Memorial Park pool complex, major infrastructure for greenfield housing sites and Totara St safety improvements.

Smartgrowth, a collective of Western Bay councils, iwi and other agencies, submitted $3b worth of projects for CIP funding, most of which overlapped council submissions and had no additional wins.

Other successful CIP-funded projects in the Western Bay area included a $23m climate resilience package for Bay of Plenty councils and $3.7m towards surf life saving facilities in Pāpāmoa and Mount Maunganui.