Programmes and packages

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

Introduction

This page provides the requirements for funding programmes and packages of improvement activities from the National Land Transport Fund (NLTF).

Note: the requirements for funding low-cost, low-risk activities and continuous programmes are detailed elsewhere in this knowledge base.

Work category 341: low-cost, low-risk improvements

Requirements of a road maintenance programme

Public transport continuous programmes

Definition of programmes and packages

Programme

A programme is a group of transport activities designed to achieve agreed outcomes (agreed between Waka Kotahi NZ Transport Agency as investor and our investment partners), that are undertaken by one or more approved organisations or Waka Kotahi (for its own activities), over one or more National Land Transport Programme (NLTP) period(s).

The activities in a programme may be grouped by:

• location (for example local authority boundary, region, national)
• theme (for example public transport, network optimisation)
• activity class (for example walking and cycling)
• outcome (for example safety, resilience)
• logical connection (for example a group of activities in a programme business case).

A programme can be:

• composed of standard interventions (as defined in our standard inventions framework) for which costs, benefits and outcomes are well known
  Standard interventions [PDF, 162 KB]

• composed of activities that fit together to achieve the outcomes sought (but are not necessarily interdependent or inter-related)
• undertaken because there are economies of scale where activities are logically undertaken together
• undertaken to meet the expectations or requirements of the parties to the work (for example approved organisations, Waka Kotahi (for its own activities), tangata whenua, property developers, neighbours).

A collection of activities that have no obvious relationship to each other is not a programme.

Package

A package is a group of transport activities that are interdependent, and that are undertaken by one or more approved organisations or Waka Kotahi (for its own activities) over one or more NLTP period(s).

For activities to be considered as a package (with a single investment priority profile) all of the following must be met:

• the activities in the package are interdependent
• the agreed outcomes will be optimised by undertaking the work as a package of activities
• the package can be delivered within a reasonable timeframe.

Interdependent means that it is necessary for all the activities to be delivered to optimise the expected outcomes; that is, if an activity within the package is not delivered it could reduce the effectiveness of the remaining activities within the package.

Legislative context

The Land Transport Management Act 2003, section 20A, sets out that we may approve activities or combinations of activities and may apply different methods of assessment for the purpose of approving them.

Land Transport Management Act 2003, section 20A(external link)

Business Case Approach to a programme or package

The process for the development of a programme or package must follow the Business Case Approach (BCA), including the steps of:

• identifying the problem(s) or opportunities for improvement and the strategic outcomes sought
• developing the options for addressing the problems or opportunities, seeking programme endorsement, investment assurance and undertaking funding application
• delivery of the programme or package
• monitoring, reviewing and providing the lessons learned.

A 3-year programme of standard interventions proposed for funding is expected to be supported by a programme business case, or an addendum to a programme business case.

Requirements of a business case that supports funding approval of a programme of activities [PDF, 231 KB]

Prioritisation of a programme or package

An activity that is part of a programme or package previously endorsed by us may be assigned the Government Policy Statement on land transport (GPS) alignment and efficiency rating of that programme or package. Where a programme or package being put forward for inclusion is new to the 2021–24 NLTP, then all phases of the programme/package and activities for the 2021–24 NLTP may be assigned the GPS alignment of the programme or package. The scheduling factor must be assessed separately for each activity phase of a programme or package being considered for inclusion.

2021–24 NLTP Investment Prioritisation Method

Assessment of programmes and packages for funding approval

Assessment of a programme for funding approval

Funding approval of a programme of standard interventions:

• requires our endorsement that the programme meets our requirements in terms of a defined programme of standard interventions, priority and value for money
• must be for up to a 3-year period corresponding with the 2021–24 NLTP period
• does not roll over to the next NLTP period (a funding application is required for the next 3-year programme)
• must be right-sized in terms of available funding, deliverability and value for money
• must be managed within the approved amount of funding – an application for a cost–scope adjustment or price increase to the 3-year programme would only be considered in exceptional circumstances.

A condition of funding approval is that if the organisation forecasts that the full approved amount of funding will need to be required due to non-delivery in the NLTP period, the organisation will declare a surplus of the amount expected to be unspent in the NLTP period.

Assessment of a programme of standard interventions for funding is at the programme level – it is not the sum of the assessments of each of the individual activities within a programme, rather it is an assessment of the whole programme.

Any activities in the total programme of activities that are considered to have a benefit–cost ratio (BCR) less than 1.0 can be included in the total programme provided the BCR for the programme is greater than 1.0 and the activity is necessary to complete and maintain the integrity of the programme as a whole.

Links to associated documents

• Guidance on right-sizing a programme [PDF, 132 KB]
• Requirements of a business case that supports funding approval of a programme of activities [PDF, 231 KB]

Assessment of a package for funding approval

Funding approval requires Waka Kotahi endorsement that the package meets our requirements in terms of the definition, prioritisation and value for money.

The assessment of a package of activities is at the package level – it is not an assessment of each individual component within a package.

Any activities in a package that are considered to have a BCR less than 1.0 can be included provided the package BCR is greater than 1.0 and the activity is necessary to complete and maintain the integrity of the package.