The State Highway 1 - Wellington Improvements Project involves delivering upgrades to State Highway 1 through central Wellington, including duplication of the Terrace Tunnel and Mount Victoria Tunnel, and various road works through Te Aro, the Basin Reserve, and between Ruahine Street and Cobham Drive. The project is being delivered across two stages.
Stage One - Tunnels, which includes
- delivery of a second Terrace Tunnel with two southbound lanes, reconfiguration of the existing Terrace Tunnel with two northbound lanes, and upgrades to the northern and southern approaches, and
- delivery of a second Mt Victoria Tunnel with two eastbound lanes, a 3.6-metre-wide walking and cycling shared path and retrofitting the existing Tunnel to two westbound lanes.
Stage Two - Roads, which includes
- the Te Aro improvements, including three lanes on Vivian Street and three through-lanes on Karo Drive at Willis Street intersection
- Basin Reserve upgrades, including grade separating state highway traffic and local traffic, public transport and active transport connections, and a new green link from Pukeahu National War Memorial Park to Cambridge Terrace, and
- the Ruahine Street and Wellington Road upgrades, involving widening to two lanes in each direction, a new Hataitai Park Bridge over State Highway 1, and replacement of the existing Hataitai Park footbridge.
Key Dates
| Aug 2025 | Project Announcement |
Procurement
| Procuring Agency: | NZ Transport Agency Waka Kotahi (NZTA) |
| Procurement note: | The project will be delivered using an Incentivised Target Cost (ITC) delivery model, with contracts for each package awarded under a Design and Construct ITC contract. Two Early Contractor Involvement consortiums will be established for each package to tebnder for the final contract. |
PROJECT HISTORY
| Jul 2024 | The project was identified in the GPS as a Road of National Significance. |
| Oct 2024 | The project was included in the draft Fast-track Approvals Bill. |
| Aug 2025 | The NZTA Board endorsed the investment case for the project and approved funding for the pre-implementation phase of development. |
| Jan 2026 | NZTA called for Expressions of Interest (EOIs) for a Principal’s Technical Adviser for the project. NZTA confirmed the project has a total estimated cost between NZ$2.9 billion and NZ$3.8 billion and will be delivered across separate tunnel and roads packages, with each being procured as Design and Construct contracts under an Incentivised Target Cost delivery model. |
Estimated Total Cost
(2026)
Sector
Road
Procurement approach
Design and Construct (D&C) |
Location
New Zealand |
Resources