SH20A to Airport Project: contract award and funding for property, design and construction

Applicant

NZ Transport Agency

Purpose

To update the Transport Agency Board on the State Highway 20A (SH20A) to Airport project and seek the Board’s approval for:

  1. the project delivery strategy
  2. property, design and construction funding for the project at an expected cost of $157 million.

Date of decision

12 December 2014

Resolutions

In relation to project delivery, the New Zealand Transport Agency Board:

  • noted
    • the current Transport Agency's project scheme for the State Highway 20A to Airport project
    • that the final State Highway 20A to Airport project scheme will integrate with Auckland Transport's future Southwestern Multi-modal Airport Rapid Transit Project (SMART) within the State Highway 20A corridor through future-proofing of rail options
  • endorsed the project delivery strategy for the State Highway 20A to Airport project with SMART integration

In relation to project funding and investment, the New Zealand Transport Agency Board:

  • noted the total project cost is estimated at up to $157 million (including net property and escalation) and is within the 95th percentile at $180 million
  • noted the National Land Transport Fund funding is to be supported by an interest-free Crown loan;
  • noted the reasons for this decision
  • approved up to$157 million for the property, design and construction ofthe State Highway 20A to Airport project
  • noted that this project cost of $157 million does not include the additional $30 million required for a widened trench for SMART light rail.

Reason for the decision

  • The SH20A to Airport improvements project has been assessed against the NZ Transport Agency's Assessment Framework.
  • The assessment profile for the project is: High strategic fit, Medium effectiveness, with a BCR of 3.1 ('Medium efficiency' under the current Investment Assessment Framework).
  • The current at-grade signalised SH20A/Kirkbride Road intersection is a 'pinch point' on the motorway network between Auckland and New Zealand's main international airport. It is also listed in New Zealand's most at-risk (crashes) 100 intersection sites. The airport and its surrounding service facilities are planned to grow vastly over the forthcoming years to include new hotels, service businesses, airport terminus extensions and an extra runway. The predicted annual traffic growth rate at our current pinch point is 5%.
  • To cater for the airport growth and the existing capacity and crash problems, the current signalised intersection will be replaced with a grade-separated interchange. Additionally, the associated approaches will be upgraded to meet the standard of the changed speed environment. After the improvements are completed, the corridor will have improved cycle facilities and will be designed to allow for the construction of a future rapid rail system if required.
  • We confirm that the matters in sections 20(2) and 20(5) of the Land Transport Management Act 2003 have been satisfied, and that the matters in section 20(3) have been taken into account.