The Investment decision-making framework (IDMF) provides a structured and logical approach to how investment decisions are made. The core elements are:
This diagram illustrates the end-to-end transport planning and investment system and where IDMF fits within this system.
End to end transport planning and investment system
View larger diagram [PDF, 133 KB]
The diagram shows how the strategic and planning drivers feed into the development of Regional Land Transport Plans and the National Land Transport Programme.
Read the summary of the IDMF [PDF, 510 KB]
We’re evaluating the IDMF tools that were implemented in August 2020 to determine whether they are working as intended and identify any opportunities for improvement. The evaluation is taking place in three phases.
The results of the first evaluation are available in following executive summary report.
IDMF early evaluation 2022 – executive summary [PDF, 369 KB]
In 2019, Waka Kotahi NZ Transport Agency undertook a review of the IDMF, including how investments are developed, assessed and prioritised for funding.
Waka Kotahi and the Ministry of Transport worked together to revise the IDMF, with support from Local Government New Zealand (LGNZ). We also worked with other local government and local authority representatives, as well as Treasury, to get their input into the investigation, design and delivery stages of the review.
The review was prompted by changes in the Government Policy Statement on Land Transport 2018 (GPS), which placed more emphasis on social, economic, cultural and environmental outcomes in transport planning.
GPS 2018 also required an investigation of the Waka Kotahi evaluation methods, and this was incorporated as a core part of the review.
The review took into account the principles outlined in GPS 2018; that all modes of transport, land use, technology, and innovation are considered and valued in transport investment. We also sought to improve the business case approach to making the case for investment.
2018 Government Policy Statement on Land Transport (GPS)(external link)
Local Government New Zealand (LGNZ)(external link)
IDMF review final report [PDF, 836 KB]
The IDMF review took place throughout 2019 and was implemented in June 2020, in time for the development of the National Land Transport Programme (NLTP) 2021–24.
Implementation included updated investment policies, processes, tools, and guidance (including updates to the business case approach, criteria for prioritisation and assessment, and evaluation methodologies).
National Land Transport Programme (NLTP)
For more information you can email our programme management team decisionmaking@nzta.govt.nz
The Investment Prioritisation Method for the 2021–24 National Land Transport Programme (NLTP) has been finalised. It replaces the Investment Assessment Framework used for the 2018-21 NLTP.
The Investment Prioritisation Method (IPM) will be used to give effect to the Government Policy Statement on land transport 2021 (GPS 2021) in the 2021–24 NLTP.
It includes moving from two prioritisation factors to three (as was the case before 2018), to give effect to the GPS 2021. This also includes the three-factor priority order matrix and the Indicative Efficiency Rating tool to prioritise activities for inclusion in the 2021–24 NLTP.
The IPM applies to activities proposed for the 2021–24 NLTP.
Investment Prioritisation Method
CloseConsultation is now open on the draft Investment Prioritisation Method (IPM) for the 2021-24 National Land Transport Programme (NLTP) and will close on 2 November 2020.
The draft IPM will replace the Investment Assessment Framework for the 2021-24 period. It has been developed in response to the Government Policy Statement on Land Transport 2021 and will be used to prioritise activities in the 2021-24 NLTP.
You can see more details about the draft IPM in our consultation document.
Consultation document [PDF, 145 KB]
Draft IPM document [PDF, 299 KB]
Indicative Efficiency Rating (IER) tool
We’re asking for your feedback on the draft IPM to be provided via our feedback form, by 2 November 2020.
Provide your feedback in the online feedback form(external link)
At this stage, we expect to have a final IPM by mid-December 2020. This does mean some programmes and activities will have already been submitted based on the draft IPM. However, we will ensure that all submissions are checked against the final IPM - both by the investment advisor, and through the moderation process.
If you have any questions about the consultation process, email decisionmaking@nzta.govt.nz
CloseOn June 10 the Investment Decision-Making Framework (IDMF) review programme released the IDMF Final report, which summarises the outcomes of the IDMF review and details of the changes.
The IDMF changes now apply to all business cases started on or after 31 August 2020. These changes relate to investment principles, policies, benefits framework, business case development and assessment and include guidance, tools, templates and exemplars.
You can view these changes, plus new tools and guidance through InvestHub.
InvestHub is our new portal which, over time, will become our ‘single access point’ for all investment-related guidance, tools and learning information.
Go to InvestHub(external link)
If you have any questions about access or how to apply the new tools, contact your regional investment advisor or email decisionmaking@nzta.govt.nz
To ensure you can confidently adapt to and apply the IDMF changes, we’re put in place training, information sessions, guidance and ongoing support, building on the online information session that was held in June for Approved Organisations and consultants.
Watch a recording of the session for Approved Organisations(external link)
We’ve established a Business Case Approach ‘Community of Practice’ to enable users to network, share knowledge and experiences, and discuss any challenges with colleagues across the transport sector.
We’re committed to investing time in the Community of Practice to support the development of skills and capabilities in the transport sector. To join, email bcacommunity@nzta.govt.nz
CloseWaka Kotahi NZ Transport Agency has today released the Investment Decision-Making Framework (IDMF) Final Report which summarises the outcomes of the IDMF review and details the changes that will come into effect on 1 July 2020.
This report represents the sustained collaborative efforts of many individuals: in Waka Kotahi, the Ministry of Transport and throughout the transport sector. We have also benefitted greatly from the ongoing support of Local Government New Zealand.
As Waka Kotahi has carried out the review, it has looked at opportunities for improvement across the entire IDMF. Improvements have been made at each stage that, together, we believe will result in a more coherent end-to-end framework that is easy to understand and simpler to use.
IDMF Final Report [PDF, 836 KB]
In particular, Waka Kotahi has simplified the way business cases are developed and enabled lower cost activities to be approved for funding in a streamlined way. Improvements have also been made to the way proposals are assessed, allowing for consideration of both monetised and non-monetised impacts, and clarified investment principles and policies.
The following technical papers support the IDMF changes:
To ensure users can confidently adapt to and apply the IDMF changes, Waka Kotahi is putting in place a programme of training, workshops, guidance and ongoing support. Approved organisations and other users are also encouraged to reach out to their usual Waka Kotahi contacts if more help is needed.
Waka Kotahi is grateful to everyone who has contributed to the review and for their ongoing support.
CloseWaka Kotahi NZ Transport Agency has made the decision to defer consultation on the draft Investment Prioritisation Method for the 2021-24 National Land Transport Programme (the draft IPM). The draft IPM is intended to replace the Investment Assessment Framework for the 2021-24 period. It has been developed in response to the draft Government Policy Statement on Land Transport 2021 (released in March 2020) and will be used to prioritise activities in the 2021-24 NLTP.
Waka Kotahi has deferred consultation on the draft IPM while it takes the time to understand the impact of COVID-19 on its programmes of work and on investment in the land transport system. It expects to provide a further update soon.
Between December 2019 and February this year, Waka Kotahi asked for feedback on proposed changes to the IDMF, with a particular focus on the assessment of investment proposals, the development of business cases and low cost, low risk programmes.
Waka Kotahi would like to thank everyone who took the time to make a submission - the number of responses was encouraging, as was the breadth and depth of the views expressed in these responses.
A summary of some of the key themes that came through in this feedback is now available:
Consultation on the IDMF Draft Design Report – summary of key themes [PDF, 386 KB]
Waka Kotahi will continue to use this feedback to inform the final design of the IDMF, which it expects to release late May.
CloseConsultation has now closed on the changes the Transport Agency is proposing to the Investment Decision-Making Framework.
These changes relate to the assessment of investment proposals, and the development of business cases and low cost, low risk programmes.
Information sessions were held earlier this month to give Approved Organisations the opportunity to ask questions about the new design. Attendees raised a number of interesting questions at these sessions and have helped identify where we can be clearer about what is being proposed.
The Transport Agency would like to thank all those who have taken the time to submit feedback – transport sector feedback is vital in ensuring the final design is the right one. We expect to make a summary of the feedback received available early April.
We will be consulting separately on the prioritisation approach to the 2021-24 National Land Transport Programme, once the draft Government Policy Statement on Land Transport has been released, expected in March.
Any questions about the consultation process can be emailed to idmfconsultation@nzta.govt.nz
CloseThe Investment Decision-Making Framework (IDMF) Review has now completed much of its design work and is seeking feedback on specific aspects of the draft IDMF design.
Since completing the investigation stage in July, the Transport Agency has used its findings to inform its thinking about the design of the new framework. As part of this, it has continued to work with internal and external technical subject matter experts to co-design the more technical components of the IDMF.
The Transport Agency is now looking for feedback on the draft design, focusing on assessment and developing business cases - we’ll be consulting separately on prioritisation once the draft Government Policy Statement on Land Transport (GPS) is released early next year.
Full details about the proposed changes can be found in the Draft Design Report. Information about the specific elements the Transport Agency is now seeking feedback on can be found in the Consultation Document.
Links to the technical papers supporting the proposed design can be found in the appendices to the Draft Design Report. They can also be accessed directly using the following links:
The Transport Agency will be holding a series of information sessions in the New Year to help clarify any questions stakeholders may have about the changes. More details will be available soon.
Please note that all feedback on the draft design must be provided by 21 February 2020 and must be submitted on the Transport Agency’s online feedback form.
CloseThe Investigation Stage Report [PDF, 342 KB] of the Investment Decision-Making Framework Review has been released.
Using research, internal reviews and extensive stakeholder engagement, the Transport Agency has gathered wide-ranging information about the existing framework and its effectiveness, including a significant amount of feedback from local government co-investment partners, sector representatives, stakeholders, our partner the Ministry of Transport, and supporter Local Government New Zealand.
The report breaks down the findings from the investigation stage into five areas; investment principles and policies, the business case approach, assessment, prioritisation and capability. It details the findings from the investigation into each of these areas, and the next step of the review programme, the design phase. The design phase will be completed by the end of 2019, and the implementation of those changes completed by June 2020.
The review of the framework was prompted by changes in the Government Policy Statement on Land Transport (GPS) 2018, which places more emphasis on social, economic, cultural and environmental outcomes in transport planning.
CloseThe Investment Decision-Making Review has progressed from investigation to its next stage – the co-design of the revised framework. The Assessment workstream has held the first of a series of design workshops about assessment, including how it works with the business case approach and how it supports prioritisation of the National Land Transport Fund (NLTF).
The attendees at the workshop included people from the NZ Transport Agency and Ministry of Transport (MoT) – who are jointly leading this work – and representatives from local government, Auckland Transport, Treasury, KiwiRail, Ministry for the Environment (MfE) and Housing and Urban Development (HUD). This wide range of people were chosen to make sure the workshop had a variety of perspectives at the table.
There was support from this group for aligning the new assessment framework with MoT’s Transport Outcomes Framework, which will align benefits to an enduring set of outcomes. They also wanted a system that uses a combination of monetised, quantitative, and qualitative approaches, one that considers sustainability (in particular climate change) and social considerations from the outset of the business case process.
As importantly, they wanted a framework that considers all modes (including rail), and housing and urban development from the outset.
Local government representatives in particular wanted a framework that better uses existing local government documents such as Regional Land Transport Plans (RLTP), Activity Management Plans (AMP) and Regional Public Transport Plans (RPTPs).
The design stage will continue until November this year.
Feedback from this workshop is being used to help guide an initial draft design, and will then go back out to partners and stakeholders for final consultation, testing and refinement. We want to ensure the sector and Transport Agency staff have the opportunity to help shape how investment decisions will be made.
The IDMF programme completed its investigation stage at the end of June. During this stage workshops were held around the country, where the Transport Agency, Ministry of Transport and Local Government NZ hosted Council representatives and other stakeholders to review and recommend changes to the framework. The full report from the investigation stage will be available shortly and will be shared externally with our stakeholders and partners.
The final stage of the programme is implementation, which will occur early next year and be ready to go live by the end of June 2020.
To get in touch with the team, email decisionmaking@nzta.govt.nz
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