The Government has opened its cheque book to Christchurch investing $39 million to build a new rail maintenance facility in Waltham.

State Owned Enterprises Minister Winston Peters says this will support hundreds of construction jobs and ensure a strong future for South Island rail.

The funding comes from the Government’s $3 billion for infrastructure projects to kick-start New Zealand’s recovery from COVID-19.

Close to 300 people will be needed to construct the new facilities in Waltham over the next two to three years, and KiwiRail says it will use local civil contractors and material suppliers “wherever possible’“ in addition to its own staff.

“That means a good amount of the Government’s investment will be going back into Canterbury’s economy, its people and its businesses, which is crucial to help offset the economic impacts of COVID-19.”

The money will also be used for a new facility for KiwiRail’s scenic trains at Waltham and new wagons and locomotives for the South Island, through Budget 2019 and 2020.

Construction work at Waltham began in January and this further investment will see it continue into 2023.