Christchurch City Council had expected the government to cover 51 per cent of the $34.2m cost of the Te Kaha surrounding streets project under its transport funding arrangement.
But NZ Transport Agency Waka Kotahi has postponed its funding decision, and there is a risk the $13m top-up may not be available.
The roading project, which includes widening the footpaths around the stadium, lowering speed limits, and introducing singage, bollards, outdoor dining areas and loading zones, was signed off by the council in June last year.
Now the project is likely go back to city councillors - with The Press reporting the likely options would be to carry on with the project, pause it or rescope it.
Councillors were told on Wednesday construction of the roading project would need to start without a guarantee of co-payment from central government in order to complete the work in time for the stadium's opening in 2026.
The NZTA funding decision is now set to be made in October and, if the answer is no, the council would need to cover the extra $13m.
Chris Lynch Media reported a memo sent to councillors and staff by senior transport project manager Jenny Rankin said NZTA met with the council on April 5 for a formal assessment of the funding application.
"They have advised that NZTA have decided to delay their decision on the funding until October 2024. Therefore, if council was to proceed with the work it would be at risk of not receiving funding.”
Rankin said the project has been tendered and construction was set to start in July."Due to the requirement to complete the road works ahead of the stadium's opening, it is not possible to delay the award of the tender or start of construction without significant operational and reputational risk.
"In summary, should council choose to fund the project itself, there is a risk that $13 million of revenue may not become available.
"Any potential shortfall will need to be addressed as part of the LTP or a future Annual Plan process."
Councillors are set to get a report next month outlining “all the options” for the transportation project, Mayor Phil Mauger told The Press.
He said they "will then make an informed decision" on the project.