Whanganui District Council reviews roading partnership with Downer
The Whanganui District Council is preparing for the “largest and most significant procurement” of the triennium.
The contract for the Whanganui Alliance, a partnership between the council and Downer for maintenance, renewals, upgrades and emergency works on the district’s transport network, finishes on June 30, 2028.
A report from council transportation manager Mark Allingham said a Section 17A review of transport services had begun, assessing current cost-effectiveness, future governance, funding and delivery.
Council chief infrastructure officer Lance Kennedy said following the review, a preferred delivery and procurement approach would be confirmed, alongside majority funder NZ Transport Agency Waka Kotahi (NZTA),
Roading and transportation has a budget of $21.7 million in 2026-27, down from $22.5m the previous year.
Kennedy said the figure included operating expenditure and “should not be read as the value of the Alliance contract alone”.
Downer was not the guaranteed future partner, he said.
“The Section 17A review is specifically intended to test the future delivery model rather than assume the current arrangement continues.
“Subject to the council’s decision on that model and the approved procurement strategy, other suppliers could potentially tender for the post-2028 contract or contracts.”
Downer was awarded the Rangitīkei District Council’s road maintenance contract in 2025.
It has alliance contracts with the Tararua District Council, the Napier City Council and the Hamilton City Council, and delivers projects through councils’ tender processes.
For Whanganui’s council, projects include repairing and strengthening a drop-out on Somme Parade, and constructing Pingao Drive, a 600m link road between Fox Rd and Fitzherbert Ave, due for completion next month.
The South Taranaki District Council splits network maintenance into two contracts covering the Egmont (Northern) Area and Southern Area.
Whanganui Mayor Andrew Tripe told the Chronicle infrastructure made up “over 90% of what we [council] spend our money on”.
The district has 340km of footpaths, 220km of urban roads, 615km of rural roads and 74 bridges.
“With every contract, it’s not just about value for money, but delivery and quality,” Tripe said.
“We also need to bear in mind that NZTA will slightly reduce its contribution to our network.”
For eligible roading work, NZTA funds 62%, with the council providing the remaining 38%, mainly through rates.
However, the subsidy will drop to 61% from July 1.
Reviewing the Alliance contract reflected the council’s triennium priorities, Kennedy said.
They included stronger contractor accountability, greater local contractor involvement and testing value for money.
“It will be the largest and most significant procurement council undertakes during its triennium.
“This review is about building on what works and making sure Whanganui has the right roading service for the future - one designed around our community’s changing needs and delivering strong value over the long term.”
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present, his focus is local government, primarily the Whanganui District Council.