The start of the construction on the multi-million dollar Opotiki harbour infrastructure project is being hailed a milestone for jobs, businesses and regional economic development in Bay of Plenty.

Economic and Regional Development Minister Stuart Nash has joined Whakatahea iwi, local councils and representatives of the aquaculture and marine industry at a ceremony with the Prime Minister to celebrate the beginning of the harbour construction.

"We are today celebrating the growth of a community which is now able to move from strength to strength,” says Nash.

The government is investing more than $112 million in three major infrastructure projects as part of the Opotiki Harbour Development project.

The investments are in partnership with iwi, local government and the commercial sector which are all co-funding or contributing to the developments.

"The community can now celebrate progress on a project that has been a priority for this region for 20 years yet failed to win support in the past. The harbour and aquaculture development will unlock the region's potential and drive the local economic recovery," says Nash.

"This funding is significant. It includes $79.4 million for the Opotiki Harbour development, $24.85 million for aquaculture development and a mussel processing factory, and $8.8 million for new marine and industrial infrastructure.

"The combination of community-led development and government support is building the infrastructure and workforce needed to make sustainable change to the region's economic fortunes. Opotiki has high levels of deprivation and around 44 per cent of people have incomes under $20,000.

"This is a major achievement for all the partners, including Whakatahea iwi, Opotiki District Council, Bay of Plenty Regional Council and a number of Government agencies which have provided broad-based support to the region.

"The harbour construction project is the latest government-supported project to get underway in Opotiki. In the wake of the Covid-19 pandemic, additional investment offered new opportunities for Opotiki and for worker redeployment initiatives.

'This has resulted in upgrades to important community assets such as five marae, a war memorial, roads, footpaths, cycle trails, horse trails, parks, playgrounds, green spaces and seismic strengthening of council buildings."

More than 1225 direct jobs are expected to be created in the Opotiki district through Provincial Development Unit-managed investment alone.

"Many of the people working on these projects are now moving on to aquaculture-related construction projects and today's event provided an opportunity to celebrate the success of this community investment and its contribution to the town's wider development," says Nash.