Applicant
NZ Transport Agency
Purpose
- To seek the Board’s approval of funding for the detailed design and construction of the NZ Transport Agency’s SH 16 & SH 20 Western Ring Route (WRR) completion package, identified by the Government as a RoNS, in Auckland;
- To seek the Board’s approval of additional property purchase funding for the above package.
- To seek the Board’s approval of a variation from standard procurement procedures for two major projects in the package.
Date of decision
25 June 2010
Resolutions
The NZ Transport Agency Board:
- a. approves funding for detailed design associated with the Western Ring Route completion package at an estimated cost of $15.00 million from R and/or N funds;
- b. approves funding for construction associated with the Western Ring Route completion package at an estimated outturn cost of $1.832 billion from R and/or N funds, subject to, as a condition precedent, a revised economic efficiency and an independent peer review being carried out to the satisfaction of the Chief Executive;
- c. approves funding for additional property purchase associated with the Western Ring Route completion package at an estimated cost of $19.40 million from R and/or N funds;
- d. approves, under s25 of the LTMA, the NZTA’s use of a Competitive Alliance requiring approval of a “shared risk” delivery model for the construction of the SH20 Avondale Heights Tunnels and the SH16 Waterview to Whau Creek (Causeway Section), two major projects in the Western Ring Route completion package;
- e. notes that the procurement process is occurring in parallel to the consent process;
- f. notes that all aspects of standard improvement project development will be applied to all projects irrespective of early approval of construction funding;
- g. agree that no construction contract will be entered into until the consent process is complete;
- h. notes that the outturn construction, property and development cost for the Western Ring Route completion package remains at $2.032 billion ($1.65 billion in 2009 dollars), the 95th percentile cost is estimated at $2.55 billion and the 5th percentile at $1.85 billion;
- i. notes the reasons for this decision are as set out in the Reasons for recommendation section; and
- j. agrees to keep the Board paper 10/06/0390 in Committee until after the completion of the procurement process.
Grahame Hall / Christine Caughey
Reason for the decision
- The assessment profile for the WRR Completion Package has been determined as being of High strategic fit, High effectiveness and Medium efficiency.
- The package contributes positively to the NZTA’s Investment and Revenue Strategy, which gives effect to the GPS through the NLTP. In addition to its high strategic fit with GPS criteria, the package provides an integrated and optimised transport solution when considered in conjunction with the investment in public transport in Auckland.
- The proposed procurement procedures provide an optimal delivery strategy, and give greater certainty to the construction sector
- 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
If you would like details of how the assessment profile for this activity was determined, please email us at boardsecretariat@nzta.govt.nz.
