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Another step towards ALPURT B2

3 November 2004

Another step towards ALPURT B2

Transfund New Zealand's Board today announced its decision to approve a $180 million grant towards construction of the State Highway 1 Northern Motorway Extension (ALPURT B2) as a toll road.

The total cost of the toll road is estimated at $320 million. The shortfall of $140 million will be borrowed by Transit New Zealand and partly paid back through toll revenue.

The Transfund Board also approved an ongoing subsidy to Transit to cover the debt not met by tolls. This subsidy is projected to total $85 million and will be spread over 16 years.

Tolling also requires an Order in Council made on the recommendation of the Minister of Transport in accordance with the provisions of the Land Transport Management Act 2003. Cabinet has not yet considered this matter.

The project comprises 7.5 km of new four-lane motorway, extending the Northern Motorway between Silverdale and Puhoi.

Transfund chair Dr Jan Wright says tolling made the project affordable for the National Land Transport Fund.

ENDS

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