The area of Frankton Rd which gave way last week appears to have been stabilised and there were no immediate concerns more of State Highway 6A would be compromised by the development beside it, New Zealand Transport Agency Central Otago area engineer John Jarvis said.
Emergency services were called to a suspected gas leak at the Shell service station last Wednesday, but on arrival found part of the footpath had given way.
There were concerns a gas pipe would be compromised, but that had not happened.
Last week, Acting Senior Sergeant Kate Pirovano said the gas pipe was replaced as a precautionary measure.
Mr Jarvis said he had been in contact with Wensley Development Group - the company developing the area directly beside the slump site, on the Lake Wakatipu side of the road.
He had also been receiving consistent updates from the contractors - Naylor Love - about the incident and the measures being taken to stabilise the area.
"They are stabilising things with some advice from geo-technical advisers.
"At this stage we've got no significant issues within the highway, other than possible effects to the services, like gas and water."
While Mr Jarvis said he did not know "exactly" what happened, he understood there was excavation work being done for part of the development when the sheet piling began to move with the "ground conditions".
"They took immediate steps to stabilise it."
Mr Jarvis said such risks existed all along that stretch of the highway, where there had been considerable development in recent years.
"We have stringent requirements . . . in terms of any destabilising of the highway.
"During the consent process [of any proposed development] we have to be satisfied that everything has been done and designed in an appropriate manner."
Mr Jarvis said in relation to the incident NZTA was satisfied with the contractor's response.
