NZTA reveals full detail of Wellington tunnel plans: Homes and Town Belt land swallowed
Monday, 17 November 2025
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Wellington’s just-announced $3.8 billion transport overhaul – of tunnels, tarmac and traffic lights – has already been dubbed potentially the country’s most-expensive roading project.
Waka Kotahi NZTA on Monday revealed its full plans for the city, including two new tunnels, a new underpass, and a complete overhaul of the road around the Basin Reserve that will, for a large part, become a two-way road.
A second Mt Victoria tunnel will fall to the north of the existing one, where Paterson St is in Mt Victoria. It would affect “some” Town Belt land, the documents show. Community engagement on the plans starts on Monday and runs through to December 14. Public feedback sessions start next Sunday.
A second Terrace tunnel with two city-bound lanes will fall to the east of the existing one with the Ghuznee St bridge extended or replaced. A new approach to the bridge will be built and a walking track from Kumutoto lane removed.
Major changes are coming to the road around the Basin Reserve, which will no longer be a one-way roundabout with traffic going in both directions for much of it.
Newtown-bound traffic from the city will travel to the north of the ground via an underpass while cars in the opposite direction will take the same route to the north, with a lane to divert into the Arras Tunnel and onto Karo Drive.
Traffic from the Mt Victoria Tunnel northbound will go to the east of the ground and directly up to Karo Drive while traffic from Mt Victoria to Newtown will circle the Basin Reserve in an anticlockwise direction.
The road to the east of the Mount Victoria tunnel will be widened.
Ruahine St in Hataitai will be widened to create two lanes in each direction and the Hataitai Park overbridge will be replaced and widened for cycling. The notorious Ruahine St-Wellington Rd intersection will no longer have the option of turning right – either entering or exiting. The Hataitai changes will also take some Town Belt land.
Wellington Rd will also be made into two lanes each way but this will mean some of Kilbirnie Park being taken.
In the city, Vivian St will become three lanes eastbound with changes to traffic signalling to improve traffic flow. All pedestrian changes will remain.
Karo Drive, westbound at Willis St, would go from two to three lanes before emerging to two before the Terrace Tunnel.
Vehicle access to Cuba St from Karo Drive and Vivian St will be closed. Up to 65 car parks on Vivian St will go to make way for an extra lane.
Green Transport spokesperson Julie Anne Genter said residents would be “shocked” to hear the government planned to take a “huge portion” of the Town Belt, community facilities and a large number of houses. She understood a local kindergarten would have to go.
“The dream of saving time for cars is a mirage – when there will still be numerous traffic lights between the two new tunnels,” she said.
“It's $3.8 billion for 2km of one extra lane in each direction – quite likely the most expensive roading project ever contemplated in New Zealand. All for no actual gain.”
Save the Basin spokesperson James Fraser said the plans were “horrendous” and reminiscent of 1980s road planning in London.
The project benefits – such as “up to” 10 minutes travel time savings at peak times – simply did not add up. The project would simply move the existing bottlenecks to traffic lights in Kilbirnie and Vivian St, he said.
“The collateral damage in Kilbirnie is huge with the amount of houses lost,” he said.
Living Streets Aoteraroa President Tim Jones said it was a huge expense for “fundamentally more roads”. The one positive is that there was no overpass – a plan previously batted away in court – at the Basin Reserve, he said.
Waka Kotahi NZTA in October signed off an investment case for a $3.8 billion – not yet fully funded –State Highway 1 project through central Wellington.
NZTA has been planning the second Mount Victoria tunnel for years and has been buying up properties along the route for decades.
In October, about 200 home-owners directly affected by the plans were sent letters telling them their homes would be acquired by the transport agency or they would be otherwise affected – such as having a tunnel built beneath them.
Deputy Wellington mayor Ben McNulty, who was briefed on the plans on Friday, warned today’s reveal would be controversial, due to the scale of the works around the Basin Reserve and the fact NZTA was going to have to use some Town Belt land for the project.
Pre-election, now-Infrastructure and Transport Minister Chris Bishop promised spades would be in the ground for a second Mt Victoria tunnel this term, which ends next year. The new NZTA plans show that property acquisition and design will run through to late 2028 and consenting won’t be finished until 2027. NZTA has confirmed the bulk of the funding still needs to be approved.