A Government grant of $6.4 million will expand the Pettigrew Arena in Taradale with new indoor courts of national standard.
"The project is likely to take 18 months with approximately 300 people employed through the process," Grant Robertson said.
"The expansion will increase the indoor court space up to 11 indoor courts which will be of national standard.
"While the facility is mostly used for regular sports, the increased capacity as a result of this expansion will mean events and large tournaments will also be able to be hosted," Grant Robertson said.
"The expansion of the Arena facilities give greater certainty to small businesses and contractors about the pipeline of infrastructure projects across the wider Hawke's Bay-Tairawhiti region," Stuart Nash said.
"The venue currently has three full-size indoor courts, for sports like basketball, volleyball, netball, badminton and futsal. However it is more than just a sports facility. The arena can be turned into a function centre and hosts trade shows, expos, conferences, concerts and social functions.
"The enhanced capacity will boost regional economic activity. Businesses in construction and service sectors, as well as a host of supporting industries like tourism providers, accommodation and hospitality, are now seeing the momentum of economic recovery.
"The infrastructure project also gives confidence about local employment conditions and the job opportunities which are emerging as the economy continues to open up. For workers who are relocating to the provinces from larger cities, the recreational opportunities also make the move more attractive," Stuart Nash said.
The funding comes from the $3 billion set aside for shovel-ready projects in the COVID-19 Response and Recovery Fund announced in Budget 2020.
All approvals are in principle and subject to contract negotiations. Investment values are also subject to change.
The $50 billion COVID Response and Recovery Fund (CRRF) was set out in Budget 2020. It earmarked $3 billion for infrastructure projects.
The government established the Infrastructure Reference Group (IRG) to work with local councils and businesses to identify a pipeline of projects to support the economy during the COVID-19 rebuild. Cabinet then decided the key sectors and regional breakdown of funds with more than 150 projects worth $2.6 billion being approved in principal.
The IRG investments will help kick-start the post-COVID rebuild by creating more than 20,000 jobs and unlocking more than $5 billion of projects up and down New Zealand.
They are in addition to the $12 billion New Zealand Upgrade Programme and existing Provincial Growth Fund investments.