The three-year deployment of New Zealand troops to Afghanistan will cost $80 million.
The money is being well spent, says Defence Minister Mark Burton, who has just returned from Afghanistan, where he met the 121 New Zealand troops stationed in Bamiyan Province, 150km northwest of the capital, Kabul.
The Governmentthis year announced that New Zealand's military commitment to the reconstruction of Afghanistan would be extended to September next year.
New Zealand troops will have been there for three years by the time they leave.
"The total cost by then - and it is an estimate based on running costs - is probably about $80 million," Mr Burton said.
The cost was not excessive for what the New Zealand troops were doing and what they would achieve.
Mr Burton said Afghan President Hamid Karzai told him New Zealand was a good friend and Afghanistan wanted "to share prosperity in the future".
Mr Burton said Afghanistan was making progress towards rebuilding the country, but it was still a heavy military and security environment.
He said the troops were very welcome and had a very good reputation.
"New Zealanders are very highly regarded."
The New Zealand military team had an ability to get down and do the job, the minister said.
"I am very happy with the way things are looking and I am extraordinarily proud of the men and women of the New Zealand Defence Force. They are doing an outstanding job."
The New Zealand troops in the Bamiyan Province are only a few kilometres from the giant 1500-year-old Buddha statues in the grey sandstone cliffs which were blown up by the former Taleban rulers in 2001.
Mr Burton said it was a stunningly beautiful place, with elements of the South Island high country and Central Otago.
"There are huge mountain ranges behind the valley, quite an amazing place."
The area was very hot in the summer but the temperature could drop to minus 20C in the winter.
