Hutt City Council has decided to step away from the delivery model of the $700 million Riverlink project.
The Lower Hutt infrastructure programme will shift Melling railway station, build a new bridge into the city off State Highway 2 over Te Awa Kairangi/Hutt River and improve stopbanks.
The programme had formed an alliance delivery model with AECOM and Fletcher Construction in May last year. But since then Hutt City Council had been engaged in costing exercises and a review of project affordability and cost-efficiency.
Following this, the council has pulled out of the agreement and opted to take direct control of certain projects.
Lower Hutt Mayor Campbell Barry said it became clear the alliance delivery model could not provide a fiscally responsible path forward for some of their most critical projects.
Barry said this included the city link bridge - a cycling and walking path that would connect to the Melling train station.
"Independent advice has shown an opportunity to deliver within our budget allocation if we pursue a different delivery model.
"Council will explore alternative design and delivery options for this work and continue pursuing funding support from government for this vital piece of infrastructure."
The council would work with New Zealand Transport Agency / Waka Kotahi to explore the alliance delivering the Queens Drive/High Street intersection, which was closely tied to the Melling Interchange and bridge.
The programme partners formed an alliance with AECOM and Fletcher Construction in May 2023. Since then, council had engaged in costing exercises as part of the Interim Project Alliance Agreement.
The council said the proactive change would help secure affordability and effectiveness of infrastructure projects.
In September last year, RNZ reported the Riverlink programme director denied the project had been newly costed at over $1 billion.
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