The Government has signed a city and regional deal with the Western Bay of Plenty, aiming to deliver thousands of new homes over the next decade.

The long-term partnership agreement is with the Tauranga City, Western Bay of Plenty District and Bay of Plenty Regional councils.

Deputy Prime Minister David Seymour, Minister for RMA Reform Chris Bishop and Minister of Local Government Simon Watts were in Tauranga today for the signing at Bay Oval.

It is the second regional deal after Auckland’s was signed last month.

It comes as the councils weigh amalgamation options amid local government and planning system reforms.

In a media release, Bishop described the Western Bay deal as “a shared commitment to plan, invest and deliver together for the long-term benefit of the region and New Zealand”.

He said the region was “one of New Zealand’s economic powerhouses”.

“From kiwifruit and forestry exports to freight, logistics and manufacturing, the region helps drive growth and jobs right across the country.”

With the Port of Tauranga and key freight corridors, it was a “critical export gateway for our primary sector”.

“When Western Bay of Plenty does well, New Zealand does well.”

Bishop said the deal would build on the work of the local Smartgrowth partnership to align housing, transport and infrastructure growth. Smartgrowth would help with delivering the plan.

The first “pillar” of the deal was “partnership for growth” - a coordinated response to investment.

Bishop said the deal also covered transport investment, land and housing development, health and education infrastructure, export growth and economic diversification — including “exploring opportunities in the Māori economy”.

It would initially focus on growth in the eastern (around the Tauranga Eastern Link), northern (Ōmokoroa and Katikati) and western (Tauriko West) corridors.

Work to grow Tauriko West is already underway. Photo / NZTA

“Growth in these areas and in existing urban areas is estimated to support 12,000 greenfield homes and 3000 infill and intensified homes over the next 10 years, aligned with transport, water and community infrastructure.”

Bishop said an “innovative feature” of the deal was an agreement for the parties to “jointly fund agreed projects using proceeds from local asset recycling plus a Crown uplift, with funding amounts and rates considered case-by-case and subject to standard government approvals”.

“These partnership projects aim to improve productivity along State Highway 2.”

The region would work with Health NZ on delivering new social infrastructure alongside housing growth.

“The same will occur for education facilities.”

Watts said the Western Bay was one of New Zealand’s fastest-growing regions and a critical trade and export hub.

The deal would support its long-term growth, productivity and resilience.

“The deal also includes establishing a 10-year partnership guided by a 30-year vision for the Western Bay of Plenty as New Zealand’s global trade gateway.”

An oversight board would be established for the deal, with an implementation plan to be delivered within six months of signing.

Dave Courtney, chief executive of the economic development agency for the region, Priority One, said in a media release the deal was a significant step towards greater certainty, alignment and confidence across the region.

Priority One chief executive Dave Courtney. Photo / supplied

“Our region has long had great potential, but not always the certainty needed to turn that into investment and delivery.

“This deal gives growth a stronger foundation.”

He said population growth, industry diversification, infrastructure delivery and urban regeneration in the region were advancing at pace and shaping the Western Bay.

“Opportunity attracts investment, but confidence and certainty help secure it.

“Those conditions are now starting to come together.”

He said the deal would support delivery and reduce risk, which built confidence, improved value for money and helped attract private capital.

Western Bay of Plenty development. Photo / supplied

“Major infrastructure is underway, Tauranga’s city centre is being reshaped, and investment is flowing into housing, logistics, energy and value-add industries.

“The Regional Deal provides a stronger platform to coordinate and accelerate that work.”

He said it was about building on momentum and ensuring growth was well-managed and sustainable.

Courtney said it could give the Western Bay the opportunity to be recognised as a premium, investable region.

“It will have the confidence to grow and the certainty to deliver for decades to come.”

Priority One chairman Todd Muller said the deal acknowledged the region as “the growth engine of New Zealand”.

“It’s a long-term commitment to plan the city’s growth and ensure the transport links, housing and social services are built at pace to support our growing population.”

The agency is holding an investment summit today, with Watts and Bishop the keynote speakers.