Invercargill's new CBD development is forging ahead - despite costing more than expected

The council will contribute 40.5 million dollars towards the new city block - with a further 10 million dollars coming from the Government.

Changes in lending rules as a result of COVID-19 means it will also have to cover the shortfall for the 46 million dollar project.

Chief Executive Clare Hadley says the council weighed up the extra spending - with the fact the project will offer employment opportunities - as part of its decision.