The New Zealand Transport Agency (NZTA) has contracted Downer New Zealand to carry out roundabout improvements in Queenstown, which will help reduce traffic around the town centre.

Under the contract, the company will enhance the existing intersection of State Highway 6 with State Highway 6A, which is locally known as the BP roundabout.

Works at the roundabout are expected to be completed by the end of March 2017.

New Zealand Transport Agency Southern Business Unit manager Ian Duncan said: “The contract for the first stage of improvements on Queenstown’s State Highway 6, from Grant Road to Kawarau Falls, has been awarded to Downer New Zealand Limited.

“Preparatory work will be underway prior to Christmas but given the need to keep the roundabout functioning smoothly over the busy summer holiday period, Downer’s Queenstown team will ensure the worksite is left safe for the period with no restriction on the traffic lanes and no reduction in parking.

"The BP Roundabout is an obvious pinch point in Queenstown’s network and it’s a relief to see the contract awarded for this important project."

"They have the work programmed to be completed by the end of March, well ahead of the ski season.”

The traffic capacity at the roundabout will be increased, a second departure lane will be added, and two circulating traffic lanes will extended around the existing roundabout.

As part of the improvement works, the Queenstown Lakes District Council’s water main in Frankton Road will be upgraded.

The total value of the project is NZ$1.36m ($957,406), with NZ$0.6m ($422,526) being used for improvements to the water main.

Queenstown Lakes District Council Mayor Jim Boult said: “The BP Roundabout is an obvious pinch point in Queenstown’s network and it’s a relief to see the contract awarded for this important project.

“Queenstown and the rest of our region is experiencing strong sustained growth at present and it’s encouraging to see the Transport Agency looking at long term solutions for our district.

“While stage 1 of the BP Roundabout is just the first part of a larger project, we’re expecting some quick wins in time for next year’s ski season which will benefit both residents and visitors alike. This is however, an early step in a larger project.”