New Zealand Government begins construction of multibillion motorway PPP

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New Zealand Government begins construction of multibillion motorway PPP

The New Zealand Government has commenced construction of the Warkworth to Te Hana motorway, a major transport infrastructure project designed to improve connectivity between Auckland and Northland. The project forms part of the Northland Expressway and is expected to strengthen freight movement, improve road safety and support economic growth across the upper North Island.

The 26-km motorway will begin west of Warkworth, pass east of Wellsford and Te Hana, and reconnect with State Highway 1 near Waimanu Road. It will link with the existing 18-km Pūhoi to Warkworth motorway, which opened in 2023, through a free-flow interchange at Woodcocks Road. The new alignment will provide an alternative to the existing route through Dome Valley and bypass the town centres of Wellsford and Te Hana. The project includes the construction of 15 bridges, two underpasses, large culverts, 12 wetland stormwater treatment basins and twin tunnels through Kraack Hill above Dome Valley. The infrastructure is designed to improve traffic flow, provide a more reliable transport corridor and reduce the impact of heavy traffic on local communities. The motorway is expected to reduce journey times by approximately seven to ten minutes and remove around 1,000 heavy vehicles daily from the existing State Highway 1 route through Wellsford and Te Hana.

The project is being delivered through a PPP between the New Zealand Government and the Northway consortium. The consortium comprises Acciona Concesiones SL, Aberdeen Investments, Global Sustainable Infrastructure GP IV Ltd and Acciona Construction New Zealand Ltd, with Downer New Zealand and AECOM serving as local delivery partners. Under the agreement, the consortium is responsible for designing, building, financing, operating and maintaining the motorway. The project agreement between the Crown and Northway was signed in July 2026.

The motorway has an estimated project cost of NZ$3.65 billion (US$2 billion) in Net Present Value terms, covering management, design, construction, financing, maintenance and operations. According to the New Zealand Government, the project has a benefit-cost ratio of 1.6 when wider economic benefits are included, indicating that the anticipated economic benefits are expected to exceed the project costs. Around 60 per cent of physical works expenditure is expected to flow through local supply chains, supporting regional businesses and contractors.

Initial activities will focus on detailed design, site preparation and enabling works, followed by major construction activity in 2027. The motorway is expected to open to traffic in 2033.

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