Waka Kotahi has thrown South Wairarapa District Council [SWDC] a lifeline and will continue funding maintenance and repairs to Cape Palliser Rd until the end of 2027.
Funding had been expected to stop from July 1, 2024, which would have meant SWDC ratepayers absorbing an annual forecast cost of $494,000 – despite the road’s upkeep costing Waka Kotahi an average of $667,894 annually since 2007 [not including emergency repairs].
Waka Kotahi has funded 100 per cent of upkeep and repairs for Cape Palliser Rd since 1997 as it is a designated ‘Special Purpose Road’ [SPR] due to its high tourism value, high maintenance costs, and minimal local rates income.
Waka Kotahi regional manager Mark Owen confirmed the three-year extension of funding until the end of the 2023-27 National Land Transport Programme [NLTP] period will cover “approved maintenance, low-cost, low-risk, and emergency works activities for the road”.
Eroding cliffs and continued pressure from surging tides have repeatedly damaged the road, requiring Waka Kotahi to spend an average of $315,695 per year on emergency repairs since 2007, bringing the annual average total to $983,589 over the past 16 years.
The amount spent on emergency repairs has historically been inconsistent.
In some years there has been zero cost, while this year emergency repair costs have already skyrocketed above $800,000.
SPRs are being phased out, with Waka Kotahi planning to transition all of them to a different funding model – called the Funding Assistance Rate [FAR] – by July 1, 2024.
Under the FAR model, SWDC will continue receiving 100 per cent funding for Cape Palliser Rd while the FAR for other SWDC roads and infrastructure will be 51 per cent. There is currently no word on what will happen regarding the funding of Cape Palliser Rd after the 2024-27 NLTP period finishes.
“We have been in touch with the South Wairarapa District Council and have informed them of this decision and the implications for future funding,” Owen said.
