By BERNARD ORSMAN
A toll on the eastern highway is likely to provide some of the funds for the project, which Auckland Mayor John Banks now says will cost upwards of $1 billion.
If Mr Banks has his way, Auckland will follow cities such as Sydney and Melbourne and use the
private sector to build, own and run toll roads.
"There simply isn't enough money to complete the Auckland roading network in the next seven years under present funding streams," he said.
The Government plans to pass legislation next year that will enable Auckland and other cities to build toll roads using private-sector partnerships.
Prime Minister Helen Clark is in favour of toll roads where there is an alternative route.
The legislation will insist on this and ensure toll roads eventually revert to public ownership.
The Eastdor group of consultants planning the highway has questioned how much tolls could fund the eastern highway and how effective they would be in reducing congestion.
Eastdor says tolls work best where all roads are tolled, such as in Singapore. The alternatives take considerably longer.
It says forecasts suggest tolls would generate about $100 million of project costs.
Some Australian companies and Macquarie Bank - which holds stakes in toll roads - have been holding preliminary talks with Mr Banks about the prospects of a public-private partnership for the highway.
But it will be at least another 12 months before they can determine the financial viability of the project and the toll costs.
Toll roads have dramatically reduced congestion and travelling time in Australia - and been very profitable. All Australian toll roads reported strong growth in both traffic volume and revenue in the past year, according to research from Deutsche Bank.
Toll roads also bring downsides. A traffic research unit at the University of Sydney has found that many drivers avoid tolled roads and "rat-run using lower-standard roads that go through communities".
Feature: Getting Auckland moving
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