The total cost of the Mt Messenger project is now $365.1 million. Photo: NZTA / Waka Kotahi
The controversial Mt Messenger Bypass project on State Highway 3 has received a funding boost after a $10 million budget blowout.
The Taranaki project's $280 million budget has jumped 30 percent - an increase of more than $85 million.
The blow-out was only revealed after an Official Information Act request and more increases are likely for the project - where just one kilometre of road has been progressed to what has been described as a "sub-grade" level.
The "additional interim funding" takes the total cost of the project to $365.1 million.
NZTA Waka Kotahi said it expected to confirm a "revised indicative cost estimate" for the bypass in the second half of this year.
Marie Gibbs - an opponent of the bypass route - said Nga Hapu o Poutama had written to the transport minister, complaining that the NZTA board was not exercising adequate governance over the project.
She said the board had an obligation under the Land Transport Management Act to deliver the project "in a manner that seeks value for money".
Marie Gibbs. Photo: RNZ / Robin Martin
"So we've got two concerns there. One is that they spent money that wasn't approved and our second major concern is how is the board making its decisions to carry on giving never-ending funding increases to this project."
When first proposed in 2016, the project had an estimated cost of $89.5 million. That jumped to $200 million a year later before settling at $280 million in 2021.
The 6km Mt Messenger Bypass aims to deliver improved safety and a more comfortable drive by avoiding the existing steep and windy route which includes a narrow tunnel.
The new route includes two bridges of about 125m and 30m in length and a 235m tunnel. It is estimated it will save motorists between four and six minutes of drive time.
Gibbs was a supporter of upgrading the existing highway. She said in May 2024 Waka Kotahi board considered its "continue, pause and stop" options for the project and it refused any additional funding instead asking for independent advice on the estimated total cost of the project.
"We want to see the information that NZTA has given the board for it to be making the decision to boost funding.
"In our view the work should stop and there needs to be a public and transparent inquiry and we've emailed the Auditor General's office asking it to carry out an inquiry into the Mt Messenger Bypass Project, the spending and decision making of the NZTA board."
In a statement, the transport agency said it hoped to have a "revised indicative cost estimate" for the project in the second half of this year.
"That will take into account the significant cost of delays from the multiple unsuccessful legal challenges, compounded with the market effects of Covid and cost escalation in the construction sector since 2020, when the last project cost estimate of $280 million was calculated."
It said the NZTA board approved the additional interim funding to allow contractors to progress work while the final property needed for the Bypass was acquired.
"Total approved funding is $365.1 million."
NZTA Waka Kotahi was yet to acquire Tony and Debbie Pascoe's farm on the northern boundary of the project.
The transport agency said legal challenges had created significant delays, and continued to contribute to cost increases.
The Crown was awaiting a decision from the High Court on an appeal by the Pascoes against the Environment Court's May 2024 ruling in favour of the Public Works Act acquisition.
The appeal was heard in August 2024 and a decision was expected next month.
NZTA said despite the challenges it was pleased with the progress being made on construction of Te Ata o Te Ata - Mt Messenger Bypass as it went through its third construction season.
"The southern-most 1km section of the project has progressed to 'sub-grade' level (essentially the road level) and excavations for the project's 235m tunnel and early works on the larger of the project's two bridges are underway too. Over the entire project, earthworks are approximately 20 percent complete.
"As with any roading project, it's important to point out any given section of the road is not fully completed until the end of the project - the ground work has to be completed well before final road surface is laid."
NZTA said its team was working on as much of the project as feasible, without access over the northern section of the project.
"We are doing everything possible to progress resolution of legal proceedings so we can access the land needed in the northern section of the bypass route as soon as possible. However, NZTA cannot control the timings of court decisions."
Transport Minister Christopher Bishop said the government remained committed to delivering "this critical piece of infrastructure for the people of Taranaki".
"Unfortunately, this project has been subject to delays and cost escalations from multiple unsuccessful legal challenges, the market effects of Covid and cost escalations in the construction sector since 2020.
"It is important for New Zealand's future that we continue to invest in critical infrastructure projects such as this one. The Mt Messenger Bypass will drive economic growth, help New Zealanders get where they need to go, and create a more productive and resilient transport network."
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