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This page relates to the 2024-27 National Land Transport Programme.

IntroductionBack to top

This is the NZ Transport Agency Waka Kotahi (NZTA) policy on business cases.

Date of issue: July 2021 │ Updated December 2023 | NZTA may review and amend investment policies at any time, including in response to any changes in the Government Policy Statement on land transport.

PurposeBack to top

The purpose of this policy is to ensure that all organisations applying for investment funding from the National Land Transport Fund (NLTF) or through the National Land Transport Programme (NLTP) understand the requirement to develop investment proposals using the Business Case Approach (BCA). This will ensure there is a fit-for-purpose, robust, evidence-based investment case which provides value for money.

Policy statementBack to top

The BCA is our (NZTA) flexible method for guiding planning and investment development processes for activities. It breaks down the work that needs to be done to develop a robust business case to support an investment proposal.

Because the BCA is principles-based, approved organisations and NZTA (for its own activities) can develop business cases in a fit-for-purpose way, depending on the type of issue or opportunity to be addressed, and the risk and cost of the proposed investment. The BCA is aligned with The Treasury’s Better Business Cases.

Better Business Cases (BBC)(external link)

More information to help users understand the BCA policy and to identify the most appropriate BCA is available on our website.

Business Case Approach guidance

Requirement to use the BCA

All organisations must use the principles of the BCA when developing investment proposals for funding from the NLTF.

Principles

Assessment of the investment proposal

We assess investment proposals by using a set of standard investment questions based on the stage or type of business case. This is to ensure the investment proposal is evidence based, sufficiently developed, cost effective and aligned with the government’s strategic priorities for land transport investment, as outlined in the Government Policy Statement on land transport (GPS).

Government Policy Statement on land transport 2024(external link)

Transport planning

All organisations should follow the principles of the BCA when undertaking transport planning work, such as preparing activity management plans (AMPs) and regional land transport plans (RLTPs). We have developed specific guidance on how to apply the BCA principles to AMPs, RLTPs and regional public transport plans, which must be followed. Using BCA principles when undertaking transport planning work involves exploring strategic and programme level issues through the transport planning work, reducing rework at an activity level and ensuring timely, robust investment proposals.

Activity Management Planning: A Guide to integrating the NZTA's Business Case Approach & Self-assessment – Draft [PDF, 7.3 MB]

RLTP guidance

Planning for public transport

NZTA support for the BCA

We will provide guidance and support for organisations in using the BCA to help build capability in the transport sector.

Further informationBack to top

Business Case Approach guidance