Government announces $192 million investment in infrastructure projects across eight regions

The Government's investing $192 million into a range of infrastructure projects across the country that are expected to enable more than 11,000 new homes over the next 15 years.

The money comes from the Government's Infrastructure Acceleration Fund (IAF), a contestable pool of about $1 billion for projects that enable housing development. 

It's part of the $3.8 billion Housing Acceleration Fund (HAF) and was announced last year to address the issue of a lack of infrastructure - like pipes, roads and wastewater connections - delaying new homes being built. 

Funding for projects across eight centres was announced on Thursday, with Housing Minister Megan Woods saying without the investment into some of these projects, they "may not have been possible or faced significant delays". 

"The investment… is expected to enable around 11,500 homes across multiple housing developments over the next 10 to 15 years, including public, affordable, market and papakāinga housing," she said. 

Lower Hutt's RiverLink project will receive $98.9 million for major stormwater upgrades, including about 2km of new stormwater pipeline, pumping stations and outfalls. This is expected to provide capacity for about 3,500 homes. 

"This funding is a significant gain for Lower Hutt as it will enable us to undertake desperately needed infrastructure investment to support the building of new homes as part of RiverLink and on our valley floor," said newly re-elected Lower Hutt Mayor Campbell Barry.

The Government's providing $36 million for three waters (stormwater, wastewater and water supply) and transport infrastructure in Nelson's central city, $24 million to Lake Hāwea for three waters projects, including a new reticulated wastewater treatment connection, and $18.5 million to improve road access and the wastewater network in Hastings. The Hasting project is expected to support 4000 new homes, including some Māori housing.

The other funding goes to Rangiora ($5.7 million), Ngāruawāhia ($5.32 million), Motueka ($1.2 million) and Whanganui ($1.95 million), all for transport and three waters projects. 

"Direct Government investment in infrastructure through our Infrastructure Acceleration Fund shows how we as a Government are not afraid to do things differently and supports our plan to drive up housing supply, ultimately getting more people into affordable, warm, dry, homes and onto the housing ladder," said Woods.

The Government previously announced funding through the IAF for Kenepuru Landing in Porirua in December 2021 and $179m in July this year for projects across seven regions. 

"This means, to date, around $376 million in IAF funding has been committed to critical infrastructure projects throughout the country. Combined, these IAF-funded projects are expected to enable around 20,000 new homes in areas of high housing need," Woods said.

"There are a further 15 IAF proposals currently undergoing due diligence and negotiation, and we look forward to announcing more successful proposals in the coming months as agreements are signed."

To be eligible for IAF funding, projects must be new or upgraded infrastructure for transport, Three Waters, or flood management, and intended to support the building of new homes in the short to medium term. 

Territorial authorities, iwi and developers were eligible to apply. The successful applicants are responsible for delivering the infrastructure and the homes it enables.

More than 200 applications were received in the initial expressions of interest period for IAF funding, with more than $5 billion requested. Of these, about 35 were progressed to a due diligence and negotiation stage. More successful projects will be announced later this year and next year.