Australia-based Services South East (SSE) has secured a five-year joint contract from the New Zealand (NZ) Transport Agency and Gisborne District Council to manage the Gisborne road network.

Scheduled to begin on 1 October, the contract has a performance-based option of a two-year extension.

The contract will be managed by Tairawhiti Roads, a joint venture formed by Gisborne District Council and the NZ Transport Agency to manage the combined Tairawhiti road network, which includes local roads and state highways.

"Combining the local road and state highway work through Tairawhiti Roads is a great opportunity to provide a better service at a competitive price."

Tairawhiti Roads general manager Dave Hadfield and NZ Transport Agency regional highway manager Chuck Dowdell noted that the re-tender for the maintenance of Tairawhiti road network is part of a national programme of regular re-tendering of all road contracts.

Dowdell said: "Combining the local road and state highway work through Tairawhiti Roads is a great opportunity to provide a better service at a competitive price.

"The SSE proposal has subcontracted a considerable portion of work to the local industry, which we expect to prove positive for the regional economy.

"They are focused on building the skill base in the district, and are increasing their presence in the number of depots in the Tairawhiti area, including Tolaga Bay, Te Puia, Ruatoria and Hicks Bay."

Under this project, SSE will be subcontracting a significant amount of work to local industry.

Tairawhiti Roads general manager David Hadfield said: "This contract is the first deliverable of council’s 2015-2025 long-term plan."