A licence to occupy and a project agreement between the NZ Transport Agency and KiwiRail have both finally been signed by KiwiRail, it was confirmed yesterday.
The agreements needed to be finalised before the contract of the long-awaited $25million final stage of the SH88 shared path, linking St Leonards to Port Chalmers, could be put out for tender and work begun.
NZTA project manager Jason Forbes said the finishing touches were now being added to a contract document, which it was expected would be ready before the end of the month.
If all went to plan, and tenders received were within the project's budget, a contract would be awarded and contractors would begin construction before the end of the year, he said.
The 5km section of the shared path to Port Chalmers was expected to take two and a-half years to complete.
The progress report came a week after West Harbour Community Board chairman Steve Walker voiced frustration at the time being taken by KiwiRail to sign the agreements and proceed to the next stage.
The agreements had lingered for "months" with KiwiRail, despite changes it was seeking being agreed to by the NZTA and Dunedin City Council, he said.
Mr Walker met NZTA staff in Dunedin on Wednesday to discuss the project and the latest delays.
Yesterday, he said the signing of the agreements was "great news and long overdue" but also "just another hurdle we have gotten over".
"I'm glad we are at this point. It's just been agonisingly frustrating.
"We have got to keep our fingers crossed now that the money there is enough to attract sufficient attention [from contractors]," he said.
Speaking last week, Mr Walker voiced concern the $25million budgeted for the next section of the project might be insufficient, as delays continued and construction activity ramped up elsewhere in the city.
"I think the longer we wait, the more likely we move into territory of the amount of money put aside won't be enough," he said at the time.
Mr Forbes said all indications were the contractors' market was awaiting the project, "and we expect that we will receive competitive prices reflective of the market".
"Our engineers estimate ... current funding will be sufficient," he said.
A KiwiRail spokeswoman, asked what the issues were, said the company had worked closely with the NZTA "to ensure the planned construction activities and design for the shared pathway meets appropriate safety standards to operate alongside an active rail line".
