A roading and land development project set to create 300 jobs and more than 1000 homes has landed $55 million in Government funding.

The multi-million dollar project would help facilitate the development of Māori land, provide housing and generate short and long-term employment.

An estimated 300 local jobs are expected to be created from the development and is a partnership between Rotorua Lakes District Council, local iwi Ngāti Whakaue and the New Zealand Transport Agency.

Months after calling for groups nationwide to come forward with "shovel ready" projects to boost the economy, Finance Minister Grant Robertson and Infrastructure Minister Shane Jones today unveiled how the new $3 billion fund will be allocated.

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The project is one of 12 nationwide announced today as part of the Government's latest post-Covid infrastructure spend.

It flagged a decent chunk of allocations for the Bay of Plenty, with an additional $115 million set to be designated for projects in the region.

Roading and stormwater infrastructure will be built to enable housing development for up to 1100 sections, as well as state highway upgrades and stormwater works.

Finance Minister Grant Robertson, pictured, and Infrastructure Minister Shane Jones today unveiled how the new $3 billion fund will be allocated. Photo / File
Finance Minister Grant Robertson, pictured, and Infrastructure Minister Shane Jones today unveiled how the new $3 billion fund will be allocated. Photo / File

State Highway 30 upgrades will include the Wharenui, Owhata and Brent Rds intersections Wharenui to Brent link, Iles to Basley link and some local road treatments, among other things. Groundworks were currently being progressed on the site and design work and consenting would proceed with pace for the remaining 900 sections of zoned land.

Rotorua Lakes Council is currently working on master-planning and storm water design.

Rotorua had originally applied for $210 million to fund seven "shovel-ready" projects as part of the Covid-19 economic response.

Projects submitted had included upgrades to urban development, Rotorua's wastewater treatment plant, the Rotorua Aquatic Centre, Whakarewarewa forest and new jetties and a building for the Rotorua lakefront.

The "shovel-ready" projects - those that were able to begin within 6 to 12 months - were put forward as part of Rotorua Lakes Council's bid to Crown Infrastructure Partners (CIP) for consideration for government funding.

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Rotorua mayor Steve Chadwick said at the tim bringing each project forward - where "prudent and feasible" - would provide stimulus in the response to Covid-19 by providing jobs.

"Our local economy has been devastated and there are many strands to the recovery plan, including bringing businesses from all sectors together to develop strategies. That work is underway.

"[The] Government's call for 'shovel-ready' projects provides an additional opportunity alongside the other work that will need to happen to help our economy recover."