New Zealand Transport Agency (NZTA) Otago-Southland regional director Bruce Richards said the "funding profile" for the new State Highway 6 bridge was being revisited.
NZTA Otago-Southland acting regional planning manager Ian McCabe said that in the current economic climate, "there is a strong focus on funding projects which support economic growth and employment".
The current bridge would be superseded by a new two-lane structure.
The existing 1926 bridge would remain, because it is built on top of the Lake Wakatipu outlet control structure, and the new bridge would be built over the Kawarau River downstream from the present one.
The $1.4 million safety upgrade to the nearby intersection of Peninsula Rd and State Highway 6 is expected to be completed before Christmas.
NZTA transport agency project manager Nic Rodger said heavy earth-moving equipment had been taken to the site to lower the crest of the hill by three metres to improve visibility.
Motorists could expect some delays due to the earthworks phase, which was expected to be finished in three weeks.
About 50,000 tonnes of waste material had been removed.
The removal of the S-bend on Peninsula Rd re-aligns the approach to the intersection.
NZTA Otago-Southland state highways manager Niclas Johansson said the improved sight distances would make the intersection safer for road users and remove the potential risk posed by heavy vehicles crossing the centre line while travelling down Peninsula Rd.
He said the project would cater for growth on the peninsula, "including the Kawarau Falls Station development and any further residential growth".
