Construction has started on a $23.5 million roading project that will allow the development of 2500 new homes in Ōmokoroa.

Western Bay of Plenty District Council said in a statement that its project to upgrade Prole Rd from a rural stretch to an urban one began this morning after a blessing of the site by Pirirakau kaumatua Peter Borell.

Along with unlocking housing, the council said its project would support the planned Ōmokoroa Town Centre and two future schools.

Work included the reconstruction of 1.7km of road from Ōmokoroa Rd to the Waipapa River, new shared walking and cycling paths, on-road cycle lanes, pedestrian crossings and a dual-lane roundabout at the intersection of Prole and Ōmokoroa Rds.

It also includes infrastructure to support development such as water and wastewater mains, power, fibre, stormwater, street lighting and landscaping.

Council project manager Raj Sumeran described the project as transformational for the peninsula as it prepares for expected growth.

Environmental planning manager Natalie Rutland said in the statement the 2500 homes would be a mix of terraced housing, townhouses, apartments and standalone dwellings on a range of section sizes.

The council is funding $16m of the project, with the other $7.5m from the Government’s Infrastructure Reference Group.

Work is expected to finish by late 2024 or early 2025.