Western Bay of Plenty District Council's plan to deliver a State Highway 2/Ōmokoroa Intersection is one step closer to securing $38 million to significantly upgrade the intersection.

Council's $38.4 million application will now progress to the negotiation stage of the $1 billion Infrastructure Acceleration Fund (IAF), Kāinga Ora announced this week.

If approved, the $38.4m application would see the construction of an interim solution to the safety and capacity issues at the State Highway 2/Ōmokoroa intersection.

The proposal is seen as a minimum 10-year solution until funding is available to build a full interchange.

Western Bay Mayor Garry Webber says while this does not mean that the proposal will automatically receive funding, this is a big step forward for the Western Bay

'We aren't quite across the line just yet, but it is exciting nonetheless given the history of this infrastructure project following countless push backs and funding limitations.

'We are delighted Kāinga Ora see the value, and criticality, this piece of infrastructure will do to fix the safety issues of this intersection and support new housing supply in Ōmokoroa.

'The Infrastructure Acceleration Fund is a competitive process with many aspiring projects infrastructure projects right across New Zealand. We are grateful we have presented a case with solid evidence to get central government to understand our needs.”

Initially submitting an Expression of Interest for $150 million for the long term interchange solution, Council reduced this to $38.4 million through stage two of the application process, presenting an interim solution to the safety and capacity issues at the State Highway 2 Ōmokoroa intersection.

'In order to make our bid more competitive in an oversubscribed field of applications, we worked with Waka Kotahi staff to identify a less costly option (total of $48.6m) that would provide a solution for up to 15 years' growth in dwellings.

'While it is a 10-year solution until funding is available to build a full interchange this is the next best thing to try and this longstanding commitment to our community of getting this project underway.”

As part of the negotiation stage Council will work with Kāinga Ora on some key matters including the confirmation of co-funding sources including Waka Kotahi NZ Transport Agency.

Waka Kotahi NZ Transport Agency Director of Regional Relationships, David Speirs says moving a step closer will be welcome news for the Western Bay community, improving safety on this intersection is essential to support the growth of Ōmokoroa and unlock much-needed housing.

'We were pleased to support the preliminary design and approach put forward as part of the application process, and acknowledge the recognition from the IAF to support this much-needed upgrade.”