Mr Key announced last July the Government would back a $50 million project to build seven cycleways throughout the country, and that many jobs would be created as a result.
He said he was getting weekly updates of progress on the initiative and reports that physical work had barely got off the ground were off the mark.
"(The reports) actually shows...it is doing better than that," he told TVNZ's Breakfast programme today.
"I would say the tough bit is getting the local councils and local authorities, who are putting together the proposals, to get all that signed off -- the easy bit is at our end -- we have the cash and we are ready to go."
Mr Key said with the project being 50-50 funded it could also lead to disagreements over the routes, which caused further delays.
He said once all the planning was signed off the project would gain momentum.
