The cost for upgrading rail infrastructure through the lower North Island has blown out by $50 million.
The project has also been delayed by four years with a new completion date of 2028. There is no guarantee that the government can meet the shortfall.
Eighteen new hybrid-electric passenger trains are due to service the lower North Island between Wellington and Masterton and Wellington and Palmerston North.
Upgrades to the track were due to be completed in anticipation of the new trains, with new electrical substations and train station infrastructure such as lifted platforms.
The original business case for the substations had a price tag of $78.3m but a revised case shows that cost has now increased to $128m.
The upgrades were also due to be completed this year but have now been delayed until 2027 – just one year before the trains are scheduled to arrive.