Integrated fare system implementation funding

Applicant

Auckland Regional Transport Authority (ARTA)

Purpose

To seek the Board's approval for construction funding for the implementation of ARTA's integrated fare system project across public transport bus, rail and ferry operations in Auckland.

Date of decision

31 October 2008

Resolutions

The NZ Transport Agency Board:

1. approves funding for the construction phase of ARTA's integrated fare system project, at an estimated capital cost of $70.0 million and annual operating costs estimated at $6.5 million over ten years at a financial assistance rate of 60% (New Zealand Transport Agency's share $42.0 million capex and $3.9 million per year opex), from N funds, subject to:
   1. ARTA obtaining funding support for local share for this project from the Auckland Regional Council;
2. notes that the 95th percentile capital cost is estimated at $85 million and the 5th percentile cost at $59 million;
3. notes the reasons for this decision are as set out in the Reasons for recommendation and conclusions section;
4. notes the project's costs are subject to any movement of exchange rate between now and the contract being awarded;
5. agrees to keep Board paper 08/10/0066 In Committee until the contract for the implementation of an integrated ticketing system has been awarded by ARTA and local funding approval is secured.

Reason for the decision

The aim of AIFS is to use a smart card ticketing solution to deliver integrated fares across the Auckland public transport network. The project plays a key role in making public transport more attractive, simple-to-use and a viable alternative to private car trips through the provision of seamless integrated travel.

The funding profile has been assessed as HHM.

The delivery of this project is integral to the development of public transport in the Auckland region and from a national context. Implementing an easy to use electronic, integrated fare system will assist making public transport an attractive and viable alternative and contributing to public transport growth and increased modal share.

It plays a key role in contributing to both regional and national GPS targets for public transport and in the purpose and objectives of the LTMA.

Previous Board conditions have been met including the adherence to and support of the NZTA principles of smartcard ticketing, the ability to extend the design to a national system, and NZTA involvement in the tender review.

The project has increased in cost since design funding approval, however still represents value for money as demonstrated by the BCR and a comparison of similar systems recently implemented in other city centres.

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.

Funding for ARTA's integrated fares project is viewed as a key component in its plans to grow passenger transport patronage in the Auckland region. We concur with this view and, based on the profile of HHM, recommend that the Board approve funding of the project from N funds.

If you would like details of how the assessment profile for this activity was determined, please email us at boardsecretariat@nzta.govt.nz.