The Government will soon issue the first tranche of infrastructure bonds that will be used to help finance its road-building programme.
In last year's budget the Government announced an extra $1.3 billion over five years, boosting total projected spending on roads to $13.4 billion over that period.
Finance
Minister Michael Cullen said at the time it would issue up to $1 billion in infrastructure bonds to help pay for the investment.
About $425 million of the bond money has already been committed between now and 2010-2011 to accelerate key state highway projects including the Manukau Harbour Crossing, Kopu Bridge Replacement, four laning of Longswamp to Rangiriri in Waikato, the Christchurch Southern Motorway and the investigation and design of Transmission Gully.
Dr Cullen today said Treasury's Debt Management Office would hold a $200 million bond tender on February 15, of which $50 million would be designated infrastructure bonds.
"The funds will be tagged for transport, helping finance the biggest road-building programme this country has seen."
United Future leader Peter Dunne welcomed the upcoming issue of the bonds.
Mr Dunne said financing road projects through debt bonds meant the cost would be paid for by both current and future road users.
- NZPA
