This page relates to the 2021-24 National Land Transport Programme.

Introduction

This page sets out requirements, work categories, guidance and profiling and prioritisation of public transport improvements within the public transport activity classes.

Public transport improvements comprise:

  • new public transport services, including trial services, and operations that fall outside the definition of a service-based public transport continuous programme
  • all public transport infrastructure improvement-related projects and activities that fall outside the definition of an infrastructure-based public transport continuous programme.

Public transport continuous programmes

Although the same work categories may apply, public transport improvement activities are separate from, and in addition to, the public transport continuous programme. Such activities must be treated as improvement projects and identified separately from the public transport continuous programme in the approved organisation’s proposal for inclusion in the National Land Transport Programme (NLTP) or for funding approval.

Service improvements – definition, work categories and exclusions 

Definition of public transport service improvements

Service and operational public transport improvements:

  • are activities identified in the qualifying services and operations work categories listed below resulting from a variation to the level of service of one or more of these activities. This is expected to result in an increase in the annualised cost necessary to support the activity already provided or expected to be provided.

More specifically these improvements include:

  • new services or reconfigurations within a network resulting in additional funding required per annum to provide the total level of service
  • trial services with a clearly defined period, expected to be up to three years. These will be reviewed before the end of the trial period to test whether they become part of the continuous programmes
  • variations in public transport units, which will affect the total cost provision across the continuous programme, resulting both in an increase to the total annualised cost of the programme and the level of services being provided by a specific activity, ie where no cost savings are instigated in other parts of the network to keep expenditure within the existing approved allocation.

Types of service improvement applications include the following:

  • New services, service trials or service variations with a whole-of-life cost of over $2 million need to be set up as separate improvement activities. They will require the application of cost–benefit appraisal procedures from the Waka Kotahi Monetised benefits and costs manual, and must include a fit-for-purpose business case and risk assessment related to the improvement(s) being initiated.

Monetised benefits and costs manual

  • Public transport initiatives in addition to the services, eg marketing, minor on-street infrastructure, terminal upgrades, park and ride facilities, improved access via walking or cycling should all form part of the packaged application (ie where there is interdependency across activities seeking additional funding).

Any proposed public transport improvement as set out above must demonstrate how it will add value to the existing network. You can do this via scenario testing of the public transport service programme using the cost–benefit appraisal template which you can download from Transport Investment Online (TIO).

Transport Investment Online(external link)

Qualifying work categories

Service and operational improvements can be carried out under the following work categories as standalone activities, separately identified and funded:

Public transport service improvements use the same work categories as the approved public transport continuous programme, but, where feasible, you should identify and submit these activities as separate improvement projects in TIO for inclusion in the NLTP for funding approval.

Exclusions

The following service and operations-related work categories are not considered public transport improvement activities:

Inter-regional services

To be considered eligible for investment support, inter-regional service improvements must be included in councils’ regional public transport plans (RPTPs) and regional land transport plans (RLTPs) and be consistent with the Land Transport Management Act 2003 (LTMA).

Land Transport Management Act 2003(external link)

Infrastructure improvements – definition, work categories and exclusions

Definition of public transport infrastructure improvements

Public transport infrastructure improvements include the construction or implementation of public transport-related physical facilities or amenities expected to generate or accommodate a level of service not already being provided. 

Qualifying work categories

Public transport infrastructure improvements costing over $2 million total cost are funded under the following work categories:

If the qualifying work is related to infrastructure improvements and is under $2 million:

Exclusions

If the qualifying work relates not only to infrastructure but also to the operations or maintenance of infrastructure amenities, or is clearly renewal related (ie it relates to like-for-like replacement of an existing asset), then the activity can be funded as part of an infrastructure-based public transport continuous programme under either of the following work categories:

Developing public transport service and infrastructure improvement activities 

General requirements for developing public transport improvement activities are described below. 

Sources of funding

Approved organisations, Waka Kotahi (for its own activities) and regional transport committees (RTCs) may propose the sources of funding for activities they include in their transport programmes and RLTPs, based on the criteria that apply to the sources.

National Land Transport Programme funding sources policy

We will make the final decision on which source of funding will be applied to assist the activity when it comes forward for funding approval.

Cost estimation and parallel cost estimate

We expect approved organisations and Waka Kotahi (for its own activities) to provide robust cost estimates for their activities, which should be prepared by people with experience in doing this. The cost estimation process should follow the principles set out in the Waka Kotahi Cost estimation manual (SM014).

Cost estimation manual (SM014)

Where risk analysis is required to provide 5th and 95th percentile cost estimates, the results are expected to reflect the project phase and type of cost estimate, eg a feasibility estimate would be expected to have a much wider range around the expected estimate than a construction estimate.

The cost estimate is uploaded to the TIO funding application as supporting information.

We require all improvement projects over $20 million estimated construction cost to undergo a parallel cost estimation process as set out in the Cost estimation manual (SM014).

Cost estimation manual (SM014)

A summary of the parallel cost estimate and reconciliation is attached to the TIO funding application as supporting information.

Peer review

Our requirements for a peer review of improvement activities and guidance on completing this are provided in this knowledge base (PIKB).

Peer review of proposals

The peer review is uploaded to the TIO funding application.

Risk assessment, analysis and management

Approved organisations and Waka Kotahi (for its own activities) are expected to apply risk assessment and management processes to the development and implementation/ construction of their activities. These should be appropriate to the scale and risk involved. This process follows the guidance and applies the procedures set out in the Waka Kotahi Risk management practice guide

Minimum standard Z/44 – Risk management practice guide

The risk register and management plan(s) for projects under development are attached to the TIO funding application as supporting information.

Consultation and engagement

Programme consultation is managed by the RTC when it consults on the RLTP. However, the requirement to take into account the views of affected communities under the LTMA and to give early and full consideration of alternative options, implies a need to consult or engage at the activity level in the course of activity development. This may also be required under other legislation, eg the Resource Management Act 1991.

Resource Management Act 1991 (external link)

Our decision conditions

We may apply conditions to any support, endorsement or approval as determined necessary for a strategy, package, programme or activity. These will generally fall into one of two categories:

  • Condition precedent means the condition must be fulfilled before the support, endorsement or approval is put into effect. For a funding approval this will mean no funding is released until the condition is met.
  • Condition subsequent means the condition needs to be fulfilled by a specified time or event, but the decision can be put into effect prior to this. For a funding approval this will mean funding can be released before the condition is met. Often, conditions subsequent will need to be fulfilled before the next funding application for an activity.

Conditions are recorded and managed through TIO.

Transport Investment Online(external link)

Profiling and prioritising public transport improvements 

Public transport activities proposed for funding from the National Land Transport Fund are profiled and prioritised under the Waka Kotahi Investment Prioritisation Method (IPM).

2021-24 NLTP Investment Prioritisation Method

The IPM has the following requirements for public transport improvements:

  • We first assess the proposal to provide assurance that a robust business case has been developed under the Business Case Approach principles.
  • We expect that public transport improvement activities are firmly linked to long-term planning documents, particularly RLTPs and RPTPs.
  • For the 2021–24 NLTP, we will use the Government Policy Statement on land transport (GPS) 2021 alignment rating to assess the significance of a problem, issue or opportunity relative to desired results set out in the GPS 2021.

Government Policy Statement on land transport 2021(external link)

  • Scheduling is applied to indicate the criticality or interdependency of the proposed activity or combination of activities with other activities in a programme or package or as part of a network.
  • A benefit–cost ratio must be calculated using the Waka Kotahi Monetised benefits and costs manual procedures and templates.

Monetised benefits and costs manual