The Mayors of Tauranga City Council and Western Bay of Plenty District Council, together with the Chair of Bay of Plenty Regional Council, have welcomed the Regional Deal as a defining step for the Western Bay of Plenty sub-region as New Zealand’s primary export hub - providing the certainty communities, businesses and investors need to move forward with confidence.

Announced today by Deputy Prime Minister David Seymour, Minister Chris Bishop and Minister Simon Watts, alongside regional leaders, the Regional Deal supports a coordinated programme of future growth infrastructure investment across transport, housing, health and education in the Western Bay of Plenty subregion.

Together, these investments and initiatives are designed to unlock and enable housing supply and support high-quality urban growth, underpinned by a refreshed spatial plan and delivered through existing funding and financing tools.

The Deal represents a shared partnership commitment between central government and the subregion to take a more strategic, aligned approach to investment - one that reflects regional priorities and delivers longterm economic and social benefits for both the Western Bay of Plenty sub-region and New Zealand.

The Agreement sets out a 10year framework for the subregion’s future, with a clear set of commitments, that recognise the Western Bay of Plenty sub-region’s role as New Zealand’s global trade gateway and one of the country’s fastest growing economies.

Tauranga Mayor Mahé Drysdale says the Regional Deal responds directly to the most significant challenges facing the sub-region.

“This Deal reflects a strong partnership with central government to deliver the infrastructure for transport, housing and services our growing sub-region needs, and gives us greater certainty as we plan for the future. By aligning central and local government in these areas, we can make real progress on solving some of the biggest issues communities face.”

A coordinated programme focused on delivery

The Western Bay of Plenty sub-region is one of the most desirable places in New Zealand to live and work. Strong economic growth averaging 4.6% per year over the past decade has created opportunities, but it has placed increasing pressure on core infrastructure including roads, water, housing, health and education.

The Regional Deal responds by bringing nationally and regionally significant projects into a single, coordinated programme with a clear focus on delivery.

“Our communities need infrastructure that enables housing, alleviates congestion, and provides essential services. This can only be achieved by working together with central government, providing long-term certainty, and aligning future infrastructure investment. This Deal is a big win for the Western Bay of Plenty and signals confidence in our continued growth and economic development. I am excited by the opportunity that this Deal represents for our people,” says Western Bay of Plenty District Mayor James Denyer.

Certainty that enables progress

Regional leaders emphasised that a key outcome of the Deal is greater certainty, particularly around Roads of National Significance (RONS) which shape planning and investment decisions over the next 10 to 30 years. This certainty supports business and investor confidence and allows the construction and development sectors to build capability and prepare for what’s ahead.

Partnership at the core

The Deal creates opportunities to better support Māori economic development, including land use, housing, procurement and business participation - contributing to enduring long-term outcomes for whānau and future generations.

“The Deal reflects a shared commitment between central government, local councils, iwi, hapu, tangata whenua and Māori Land Trusts and key regional partners to work differently - with a stronger focus on alignment, accountability and longterm outcomes. This is about getting the fundamentals right for the decades ahead, working together with government and our regional partners to lay foundations for a more connected, resilient and prosperous Western Bay of Plenty - a region where people and businesses can thrive.” says Matire Duncan, Chair – SmartGrowth: Combined Tangata Whenua Forum.

Progress under the Deal will be measured and communicated transparently, with regular updates on priorities, timing and impacts to reinforce trust and confidence as the programme develops.

Laying the foundations for the future

While today marks a significant milestone, the Deal is the beginning of a long-term journey. The projects within the Deal will be delivered over a 10-year period and are essential in addressing long-standing infrastructure challenges and supporting the sub-region’s continued growth.

“Today marks an important milestone in our ongoing commitment to bring together all levels of government and our tangata whenua partners to work collaboratively in the longterm interests of the region. We are much stronger together. ‘Ehara taku toa i te toa takitahi, engari he toa takitini - My strength is not that of an individual, but that of many,” says Bay of Plenty Regional Council Chair, Matemoana McDonald.

By working together, the sub-region and central government are laying the foundations for a more connected, resilient and prosperous Western Bay of Plenty - a place where people and businesses can continue to live, work and thrive.

This has significant benefit for New Zealand Inc to enable central government priorities around increased housing supply, export growth and productivity.

Specific Deal priorities and initiatives are outlined below. Further detail is available in the published Regional Deal documentation.

Summary of the Western Bay of Plenty Regional Deal

The implied investment into the region over a 10-year period through new and existing funding by both the Crown and the sub-region is likely to exceed $4bn across roading, waters, health and education.

The key themes are:

1. Transport Infrastructure
2. Land and Housing Development
3. Social Infrastructure
4. Export Growth
5. Economic Diversification

1. Transport Infrastructure

Objective:

Enable growth by removing transport constraints and sequencing land release alongside major roading investment.

Initiatives

1. The Government will prioritise:
   1. Takitimu North Link Stage 2 (TNL2, Te Puna–Ōmokoroa)
      1. This unlocks the Northern Corridor including Ōmokoroa and will enhance residential and commercial opportunities in Katikati.
   2. Widening of SH29A (Tauriko West, Barkes Corner–Tauriko Roundabout).
      1. This enables the completion of Tauriko Business Estate and Tauriko West Residential development and has the potential to unlock other growth nodes in the west.
   3. Investigate tolling options with the Region.
      1. Looking at how new approaches may work for the region to fund its roading network.

2. Land and Housing Development

Objective:

Unlock and accelerate housing delivery through greenfield growth in the Eastern Corridor, supported by the existing Tauranga Eastern Link, including the developments in Wairakei, Pāpāmoa East, Te Tumu, Bell Road and Te Kāinga; Northern Corridor, including developments in Ōmokoroa and Katikati; Western Corridor (Tauriko), and infill/intensification on the Te Papa peninsula over 10 years.

Initiatives

1. Refreshed sub regional spatial plan which will empower the region under the new resource management reforms.
2. Eastern corridor waters infrastructure: The sub region, with Crown support, will explore methods of funding and financing the waters infrastructure requirements in the east that can operate within the intended ‘Waters Done Well’ framework. This will unlock housing in the eastern corridor.
3. Prioritise funding for local road improvements supporting housing growth in eastern, northern, and western corridors as part of NLTF GPS 2027.

The specific roading projects in each corridor over the 10-year term of the Deal are:

Northern Corridor:

• Ōmokoroa
  • Francis Road
  • Francis Link Road
  • Francis Link Road to Bridge

Eastern Corridor:

• Te Tumu
  • Te Okuroa Drive
  • The Boulevard
• Te Puke/Bell Road
  • Seddon Street
• Rangiuru
• Young Road

Western Corridor:

• Keenan Road (incl intersection with SH36)
• Belk Road
• Kaweroa Dr extension to SH36

3. Social Infrastructure

Objective:

Align health and education investment with growth to keep services in step with population change.

Initiatives

1. Health
   1. The sub-region and the Crown will form an independent joint planning group that will agree on a plan that meets the anticipated future growth needs.
   2. Planned redevelopment of Tauranga Hospital to Tier 2.
   3. Creation of a new ambulatory hub aligned with HealthNZ’s infrastructure plans.
2. Education
   The sub-region and the Crown will form an independent joint planning group and agree on a plan that meets the anticipated future growth needs.

4. Export Growth

Objective:

Improve productivity and freight efficiency along State Highway 2 and support key export sectors.

Initiatives

1. The sub-region to investigate an asset recycling programme which would attract a Crown uplift. Provisionally this would be used to fund ‘Connecting Mount Maunganui’ (Hull, Hewlett’s and Totara, State Highway & local roading upgrades) and the Katikati bypass.
2. Align local and national Recognised Seasonal Employer (RSE) worker housing rules to support projected kiwifruit growth in the Western Bay of Plenty.

5. Economic Diversification

Objective:

Enable growth by driving economic diversification and unlocking the opportunities in the Māori Economy.

Initiatives

1. Economic Diversification: the sub-region and the Crown will work together on economic diversification opportunities across horticulture and robotics, automation, marine science and aquaculture, and freight and logistics decarbonisation.
2. Activating the Māori Economy: The sub region’s Iwi and the Crown would work together across social procurement, housing and papakāinga, land leasing, and public infrastructure.

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