14 Sep 2023

Long-delayed Lower Hutt cycleway cost blows out four times original budget

10:47 am on 14 September 2023
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A proposed cycleway in Lower Hutt has skyrocketed in cost. Photo: 123rf.com

The cost of a cycleway in Lower Hutt has blown out to $70 million, or more than $23m a kilometre, the same as some state highways cost.

The 3km ride between Petone railway station and just south of Melling has taken almost four years to build.

Its original budget was $17m in 2017 and it was aimed to open in 2018.

"Original funding was approved on initial estimates prior to completion of detailed design and building consents being approved," said an agency email to RNZ on Wednesday.

Work actually began in late 2019 just before Covid lockdowns; by 2021 the cost had escalated to $30m.

Its scheduled opening last month has been pushed back to mid-October.

In June, the latest $5m was added on by Waka Kotahi as "mitigation costs for contaminated land, additional KiwiRail costs, labour and materials".

Earlier, reports showed the agency did not investigate properly, and assumed there would be minimal costs for contaminated and underground services, but these blew out hugely; nor did it cooperate with Kiwirail properly though the rail line is right next to the bikeway.

"Increased cost for excavation and moving underground services, KiwiRail line closures and underpass," the new email said.

Covid-related costs from February to May added a further $2m.

The short section will eventually connect to a 4.5km section from Petone to Ngauranga.

That had a budget early this year of $311m, versus $190m two years ago.

It includes a shared path on the sea side of the railway line and State Highway 2, a new shared watersports centre and tiny rock islands offshore for birds.