NZ govt agrees to fund 2/3s of rebuilding key Chch projects

NZ government agrees to fund two thirds of rebuilding Christchurch key projects, infrastructure

By Tina Morrison

June 27 (BusinessDesk) – New Zealand’s government has agreed to fund two thirds of the cost to rebuild Christchurch key public buildings, precincts and essential infrastructure such as water pipes and roads damaged by the 2010-11 earthquakes, with the city council funding the other third.

The government will contribute $2.9 billion for so-called anchor projects in the Christchurch Central Recovery Plan and the repair and replacement of essential horizontal infrastructure, while Christchurch City Council will contribute $1.9 billion, Canterbury Earthquake Recovery Minister Gerry Brownlee said in a statement.

The agreement “gives both the Crown and the council the ability to plan both the management and development of anchor projects with more certainty,” Brownlee said. “New timelines and designs for projects will be announced progressively over the coming months.”

New Zealand’s Reserve Bank expects the $40 billion rebuilding of earthquake-damaged Christchurch will contribute to annual economic growth of 2.8 percent next year. The economy expanded at a 2.5 percent annual pace in the first quarter as construction activity grew for a fourth consecutive quarter to its highest level since March 2008.

(BusinessDesk)

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