Capital may be offered cheaper two-lane road

A proposed highway north of Wellington is likely to cost up to $800 million to build and could be dumped in favour of a two-lane road, industry sources say.

The news comes as government road builder Transit New Zealand prepares to reveal on Friday new costings for the 27km, four-lane inland highway through Transmission Gully.

Sources said a five-month study by Transit had put the project at between $600 million and $1 billion. Another narrowed the figure to $800 million.

But a less expensive two-lane road was expected to be offered by Transit as an alternative, the sources said.

Transit regional manager Brian Hasell would not confirm the price of the new road. Instead he reiterated that Transit's estimates were for a road that was safe and appropriate for a state highway.

Some elements included in the road design could be optional, he said, and it was possible the region would need to look at building an access road on the Transmission Gully route which was not a state highway.

More than one option would be presented to MPs, mayors and local and regional council representatives at a briefing on Friday.

Transmission Gully supporter United First leader Peter Dunne said a major "rethink" would be needed if the cost was $800 million.

The region needed to see what that price included and options for modifying it.

"I remain to be convinced there's been a four-fold increase in less than 10 years when inflation has been around the 2 per cent mark," he said.

Once the results of the study are issued on Friday, the Greater Wellington regional council will decide if a more detailed geotechnical survey of the road is needed to give a more accurate costing.

It is also expected to issue the results of its own study into the cost benefits of building a second access road.

Transmission Gully, if it goes ahead, will be a toll road and part funded by a private investor.

Ratepayers could also be asked to pay towards its cost.

- NZPA