Mt Victoria tunnel: $7m spent on consultants and contractors but plans remain secret
The bill for consultants and contractors working on two new tunnels in central Wellington has reached $7 million, but what is planned, how much it will cost, and when anything might be built remain secret.
An investment case for Wellington’s State Highway 1 improvements, which include a second parallel Mt Victoria tunnel, a second Terrace tunnel and major changes around the Basin Reserve, was considered by the NZ Transport Agency Waka Kotahi board early last month.
The outcome of that meeting has not been made public, with Transport Minister Chris Bishop yet to announce next steps on the project, though he remains committed to construction of a second Mt Victoria tunnel starting before next year’s general election.
A written parliamentary question to Bishop from Labour transport spokesman Tangi Utikere shows that, between April 1 last year and July 31 this year, the total amount spent on the project is $7,900,148.
Of that, $7.16 million has been spent on consultants and contractors, but Bishop said that amounted to only “a drop in the bucket” for the multibillion-dollar project.
Bishop said NZTA and the Government would publish further details on the project “in due course” after he is briefed on the board’s decision.
He would not answer questions about the projected costs for specific components of the project, saying, “I do not believe it is in the public interest to release this information ahead of the Government considering this advice.”
Utikere has criticised the secrecy surrounding the plans, and is sceptical that the Government will be able to keep its construction promise.
“Just like many other promises National made during their campaign, the Wellington tunnel will be another broken one,” he said.
“Shrouded in secrecy, it’s as though Chris Bishop is trying to cover up the failure before ground has even broken.”
It comes after National campaigned on putting an end to Labour’s “gravy train” of consultant spending, and after NZTA lost staff as part of the Government’s public sector cuts.
The agency confirmed that those working on the project had been gagged from speaking about it by non-disclosure agreements (NDAs).
Such agreements were a “common project and procurement control” for commercially sensitive projects such as Roads of National Significance, to “ensure confidential information is not shared inappropriately”, NZTA said.
Community says it has heard ‘nothing’, demands answers
Asked what correspondence the community had had with NZTA about the project, Mt Victoria Residents’ Association president Ellen Blake said “nothing”.
“It’s as simple as that. Nobody really knows anything.”
She said the construction of a new tunnel, which is set to be fast-tracked, would have a significant impact on the neighbourhood, from noise and construction disruption to a possible loss of housing to make way for the tunnel.
“It’s really disappointing that the Government thinks you can just do this without talking to the people who are going to be most directly affected by it.”
She said sentiment in the community was largely against a second tunnel, saying there was “definitely a lot of people who don’t want it, particularly the people who are going to have their houses demolished, who are going to live very close to all the action”.
The seven-figure spending on contractors and consultants was “disturbing”, she said.
“You can spend a lot of time on consultants and contractors and still not get anywhere. It’s a real free lunch for consultants.”
Bishop says work on long-touted tunnel will start before election
In response to the consultant spending, Bishop said, “Large transport projects require specialist expertise, which means contractors and consultants, like engineers. That is a fact.
“In the context of a multibillion-dollar project, it is a drop in the bucket.”
The project, which is intended to save commuters about 10 minutes on journeys, was an “important project for Wellington and the wider region”, he said.
He recommitted to early works starting before the 2026 election.
Plans for a second Mt Victoria tunnel have long been debated in the capital.
In 1974, a pilot tunnel was bored through Mt Victoria to test the feasibility of a second tunnel, but plans were shelved in 1981 because of budget constraints.
During the 2023 election campaign, National campaigned on scrapping LGWM but continuing work on a new tunnel.
Party leader Christopher Luxon told media during the campaign that construction of the project would begin “probably about the mid to end point” of a National-led government’s first term.
National’s 2023 estimate for a second Mt Victoria tunnel and Basin Reserve improvements was $2.2 billion.
After the election, LGWM was disbanded, and the Government took over responsibility for the second tunnel.
It then began looking into the option of a long tunnel under the city, but that plan was scrapped, with Simeon Brown, then the Transport Minister, telling the Herald that the mega-tunnel was unaffordable at an estimated cost of about $8b.
Work to investigate that option cost more than $1.6m in consultant fees and took longer than planned.
Doubt has been cast over whether work can start this term. The National Land Transport Programme (NLTP) did not commit to a timeframe for beginning construction on any new tunnel.
Ethan Manera is a Wellington-based journalist covering Wellington issues, local politics, and business in the capital. He can be emailed at ethan.manera@nzme.co.nz.