Auckland EMU and depot project

Applicant

NZ Transport Agency

Purpose

To seek the Board’s approval to co-fund from the National Land Transport Fund, with Auckland Council, principle and interest payments to pay off loans raised for Auckland Transport’s 57 three-car EMUs and their Wiri depot.

Date of decision

6 September 2012

Resolutions

The New Zealand Transport Agency Board:

1. approves funding to repay principle and interest on loans raised for Auckland Transport’s 57 three-car Electric Multiple Units (EMUs) and their Wiri depot at a total cost for 2012-15 of $65.5million (NLTP share $37.9 million), at a funding assistance rate of 59% in 2012/13, 58% in 2013/14, and 57% in 2014/15, subject to Auckland Transport using any funds realised from the sale of existing rail rolling stock to which the NLTP contributed funds, that is replaced by the EMUs, to offset the cost of the EMUs and depot to the NLTP at the prevailing funding assistance rate.
2. agrees that the associated expenditure becomes an ongoing commitment for future NLTPs; and
3. agrees that the term of the loan for the EMUs is nominally 35 years with a total project cost – principle and interest - of $1,103.8 million (NLTP share $562.3 million), and for the depot is nominally 50 years with a total project cost – principle and interest - of $317.8 million (NLTP share $161.5 million).

Reason for the decision

The assessment profile for this activity has been determined as being of high strategic fit, high effectiveness, and medium efficiency.

Auckland Transport's Electric Multiple Unit metro trains and their depot are critical components of the Auckland Rail Development Plan which contribute to the objectives of the NZTA's Investment and Revenue Strategy, and those of the Land Transport Management Act 2003 (LTMA), by reducing peak period congestion and helping achieve an integrated land transport system. They also contribute to the government's objective to provide a high quality transport system for Auckland.

We confirm that the matters in sections 20(2) and 20(5) of the LTMA have been satisfied, and that the matters in section 20(3) have been taken into account.