This page relates to the 2024-27 National Land Transport Programme.
Introduction
This is the NZ Transport Agency Waka Kotahi (NZTA) policy on innovations, trials and pilots funding.
Date of issue: June 2023 | Updated June 2024 | NZTA may review and amend investment policies at any time, including in response to any changes in the Government Policy Statement on land transport.
Purpose
This policy identifies the circumstances in which innovations, trials or pilots may be funded from the National Land Transport Fund (NLTF).
Definition of terms
The following definitions are used in the context of this policy:
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Innovation: the action or process of innovating that provides new ways of responding to transport problems, including applying traditional knowledge in new ways to address transport issues and opportunities.
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Pilot: an activity planned as the first phase of a trial to inform the development of a proposal for a full trial; the focus is on assessing the feasibility of an approach to be used in a trial.
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Trial: small-scale implementation to test the performance, scalability, costs and benefits, qualities, or suitability of a potential solution.
Policy statement
We (NZTA as investor) will consider investing in an innovation, pilot or trial where:
- it aligns with strategic priorities in the Government Policy Statement on land transport 2024 (GPS 2024)
Government Policy Statement on land transport 2024(external link)
- there is an existing information/knowledge gap
- it can provide provisional solutions and information that can inform the choice and design of the preferred solution
- there is a need to prove a concept and/or build community support before committing to permanent solutions and/or improvements
- it can assist in reducing risks associated with the delivery of large-scale permanent solutions
- it is low cost and there is a clearly identified benefit that justifies incurring that cost
- it constitutes a temporary activity or interim intervention as part of physical works, technology or marketing activities.
Funding for innovations, trials, and pilots
For the 2024–27 National Land Transport Programme, we will consider funding innovation, pilot and trial activities in accordance with this policy. These activities can be included in various work categories across the NLTP. Examples include:
- trialling a new method for carrying out a maintenance activity that has the potential to reduce costs if proved effective
- minor service trials consistent with the relevant regional public transport plan for passenger transport services are funded through the approved allocation for passenger transport operations from the public transport services activity class.
Public transport services and infrastructure
An innovation, trial or pilot that has a value exceeding the low-cost, low-risk threshold may be included as part of the business case phase, pre-implementation phase or implementation phase of an activity.
Assessment of innovation, trial, and pilot activities
We will assess the value-for-money proposition of an innovation, trial or pilot activity, having regard to:
- the use of the data or information expected to be gained
- the benefits arising during the period of implementation
- the reasonableness of the costs involved
- the quality of the evaluation plan and likelihood that it will be carried out successfully
- whether reversal is both easy and not cost prohibitive.
Exclusions
Excluded from innovations, trials and pilots funding are:
- innovations, trials and pilots for data and evidence that are already well known
- retrospective innovations, trials and pilots
- not aligned with the GPS 2024.
Additional information
In many circumstances, the calculation of a benefit–cost ratio (BCR) for undertaking the option of an innovation, trial or pilot may not be possible as the scale and types of benefits will not be known in advance. However, it is necessary to provide evidence of the cost-effectiveness of any proposed innovation, trial or pilot and how the results could support a case for permanent investment. Where a BCR is not possible, the benefits would be described or quantified with regard to the value of the information gained from the trial and any benefits arising during the period of the innovation, trial or pilot.
The benefits of the trial or pilot may be purely data or information but may also include benefits from the Land Transport Benefits Framework achieved over the course of the trial or pilot.
Land Transport Benefits Framework
The benefits derived from the innovation, trial or pilot can be utilised for the case for the permanent intervention, noting that they are compared to the ‘do minimum’. An innovation, trial or pilot does not become the ‘do minimum’ for economic evaluation.
