Next stage for Peninsula Connection

Dunedin (Thursday, 25 May 2017) – The process to appoint a contractor for the Peninsula Connection road safety improvement project is about to begin, with work on the project expected to start later this year.

The costs for the improvements will be significantly higher than forecast. Work will start within the current budget, and additional funding will be considered as part of the Dunedin City Council’s Long Term Plan process.

The preferred option for the design has been chosen – this features a shared pedestrian/cycle path rather than a separated path.

The DCC’s Group Manager Transport Richard Saunders says, “In determining the design, we looked at the feedback we received from residents and at an open day, as well as having constructive meetings with a number of stakeholders. Because space is constrained, a shared path and widened road will deliver the greatest benefit for all road users.”

Mr Saunders says, “During the detailed design process it became apparent that forecasted costs for this project which were used to set the budget during the 2015/16–2024/25 LTP were substantially under-estimated. We decided to develop a full business case for the remainder of the project, for assessment by the NZ Transport Agency to ensure the project still delivers value for ratepayers and improved safety for all road users.”

The revised cost estimate, which has been subject to an independent peer review, is $49 million, compared to the $20 million forecast in the 2015/16–2024/25 LTP. The Transport Agency has reviewed the new business case for the project and agreed to fund their share, which is around $27 million (55%).

The Transport Agency’s Southern Planning and Investment Manager Graeme Hall says, “The new business case for the Peninsula safety improvement project demonstrates the revised cost still delivers significant value for the community and visitors to Dunedin. The New Zealand Transport Agency, on that basis, was able to confirm its commitment to fund the remainder of the project.”

In the 2015/16–2024/25 LTP, the Council contribution for the $20 million project was approximately $8.5 million which, with the revised estimates, leaves a shortfall of around $13.5 million. The DCC will start construction this year, but keep within the currently approved budget. The Council will be able to consider any further funding as part of the 2018/19–2027/28 LTP.

Otago Peninsula Community Board Chair Paul Pope says, “The Peninsula and wider Dunedin community really want this project to happen – it will make one of our main routes safer and it will be a great asset for the city. There’ll be some nervousness about the decision in the Long Term Plan, but we feel reassured by the Transport Agency’s commitment to continue funding the project. It’s good to know about this now and we’ll stay vigilant and vocal.”

Mr Saunders says, “Although the higher price is not ideal, it’s good to have completed a robust business case that demonstrates value to the community. Our focus now is to get the project underway and provide the information the Council needs so it can consider the additional funding to deliver the project during the LTP process.”

Chair of the Council’s Infrastructure Services and Networks Committee Cr Kate Wilson says, “This is core infrastructure that needs to be safe for all users and reflect the changing needs, from buses and campervans to commuting drivers and cyclists to children connecting with their friends.”

In July, design plans will be available, with details of pullover areas, beach access and safe crossing points. The DCC will have another open day in July where the public can come along and view these plans. The project will be put out for tender in August and work is expected to start in October or November. The decision on where works will start will be made before the tender process begins in August.

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