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Central Hawke’s Bay Welcomes Cash Injection of $35.5 Million

Central Hawke’s Bay Welcomes Cash Injection of $35.5 Million


Monday 10 June 2019


Central Hawke’s Bay (CHB) will see an injection of $35.5 million into infrastructure and economic development projects across the district as part of Provincial Growth Fund (PGF) investment announcements today.

Central Hawke’s Bay District Council (CHBDC) welcomed the investment into local projects that will support and accelerate economic growth for businesses, communities and tourism in the district.

PGF investment funding will go towards a number of CHB initiatives in the following way:
• $20.1 million to upgrade essential economic transport routes leading to State Highway 2 and the Port of Napier.
• $14.7 million to Hawke’s Bay Regional Council for the Tukituki water security project.
• $350,000 for a feasibility study in CHB to understand additional upgrades and investment requirements to meet High Productivity Motor Vehicle standards on CHB roads.
• $250,000 for CHBDC to complete an economic development opportunities assessment for the district.
• $104,764 for Nga Ara Tipuna, a joint project between Te Taiwhenua o Tamatea and the council that will bring historic pā sites back to life. The project will use installations, signage and digital storytelling to engage locals and visitors, inspiring them to see this landscape in a fresh light.

The council has been working with the Provincial Development Unit and regional partners over the last year to meet its criteria and expectations for these projects.
Alex Walker, Mayor of Central Hawke’s Bay said, “Investment of this scale, in a small community like ours, is truly transformational.



“From strengthening our transport routes and improving water security, to investing in our cultural heritage and helping us understand more about our economic potential - this funding will help lay the foundations we need to build a proud and prosperous district, promote smart growth, and attract and enable business success.”

Notes to editor:
• The Provincial Growth Fund is administered by the Provincial Development Unit, part of the NZ Ministry of Business, Innovation, and Employment. The Government has allocated three billion dollars over a three-year term to invest in regional economic development through the Provincial Growth Fund (PGF).

• The PGF has allocated $14.7 million to Hawke’s Bay Regional Council for Central Hawke’s Bay’s Tukituki water security project. The project will develop a ‘Managed Aquifer Recharge’ (MAR) which involves replenishing aquifer levels by taking surface water during high flows (potentially utilising small to medium scale storage), filtering the water and releasing it into aquifers. Work will be undertaken to investigate, develop and introduce an integrated groundwater replenishment programme to more sustainably manage the district’s groundwater systems.

• The transport package of $20.1 million will fund much needed upgrades of roads that are essential economic transport routes leading on to State Highway 2 and on to the Port of Napier. Specific improvements include upgrades to the bridge network on Poragahau Road between Waipukurau and Tukituki Forest. These routes were chosen based on their contribution to primary industries such as Forestry and Agriculture alongside key factors such as social and economic resilience, the potential to unlock economic development for Māori landowners, and current and future tourism growth. The upgrades will improve resilience to flooding and ensuring reliable transport links for businesses and communities across the district.

• The PGF has allocated $104,764 for Nga Ara Tipuna, a joint project between Te Taiwhenua o Tamatea to bring Central Hawke’s Bay pā sites to life. Nga Ara Tipuna will highlight the network of pā that surrounded Waipukurau and bring, what was, the hidden freshwater economy and culture of local Māori to light. The project will use installations, signage and digital storytelling to engage locals and visitors, inspiring them to see this landscape in a fresh light.

• The PGF will fund $350,000 for a feasibility study in CHB is to understand additional upgrades and investment requirements to meet High Productivity Motor Vehicle (eg: freight trucks) standards on CHB roads.

• The PGF will fund $250,000 for CHBDC to complete an economic development opportunities assessment for the district will help CHBDC will review the strengths, weaknesses, challenges, opportunities and threats to economic development in the district.

The Central Hawke’s Bay Economy

• Forestry, fishing and mining (FFM), Manufacturing and agriculture produce 48% of the total GDP generated by Central Hawkes Bay District. These are the key sectors in Central Hawkes Bay employing 2600 people directly, around 41% of the total employed population. Much of what is produced either supports value added production elsewhere in NZ or is exported thus directly contributing to a positive balance of payments for the country.

• In 2017 this district and its industries contributed $482 Million to the regional economy of Hawkes Bay and Hawkes Bay contributes (via the above three industries) 4% of New Zealand’s total GDP in these sectors.

• Central Hawke’s Bay is planning for a tourism boom in the coming years, a boom that is already being realised. MBIE’s Monthly regional tourism estimates (MRTEs) for April 2019 show that in the 12 months to April 2019, Central Hawke’s Bay saw $36.2m of estimated visitor spend, up $2m or 4.3% from the 12 months to April 2019.

-ENDS-

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