Applicant
NZ Transport Agency
Purpose
To seek the Board's special sub-committee's approval for funding the New Zealand Transport Agency's Newmarket Viaduct Replacement project construction in the Auckland region.
Date of decision
03 September 2008
Resolutions
The NZ Transport Agency Board:
- notes that the Board has delegated authority to the Chair and Bryan Jackson, as Chair of the State Highways Committee, to take decisions as may be necessary to advance the Newmarket Viaduct Replacement project as set out in Board resolution 08/08/0020;
- agrees with the NZ Transport Agency's variation of its 2008/09 Land Transport Programme to advance the Newmarket Viaduct Replacement project and approves the addition of the project into the 2008/09 NLTP;
- approves funding for the construction of the NZ Transport Agency's Newmarket Viaduct Replacement project at an estimated cost of $193.5 million (including escalation and property costs) from N funds;
- notes that the expected construction cost of the project is estimated at $200.5 million, the 95th percentile construction cost is estimated at $210.8 million and the 5th percentile at $189.5 million;
- notes that advancement of the project's commencement 2008/09 will entail a finance cost, comprising interest foregone on NLTP surpluses and interest on debt required to fund NLTP deficits, estimated at between $20 million and $30 million, and that the Auckland region state highway programme for the 6 year GPS period will be reduced by an equivalent value;
- requests the Chief Executive to investigate and report options for borrowing to fund the project as part of the management of NLTP cash-flows;
- notes the reasons for this decision are as set out in the Reasons for recommendation section; and
- agrees to take Board paper 08/09/0034 out of Committee when the Board has published the notice of decision.
Reason for the decision
The assessment profile for the project has been determined as High seriousness and urgency, Medium effectiveness and Medium efficiency (HMM).
The project contributes positively to the GPS target relating to avoiding deterioration of travel time and trip reliability on a route expected to be identified as critical under the GPS. It also contributes positively to the purpose and objectives of the LTMA, mainly through its economic development, and has some public health benefits. Some negative contributions have been identified; the potential to increase travel demand for single occupancy vehicles and possibly a negative impact on the uptake of improved passenger transport services in Auckland. In the longer term, some form of Travel Demand Management will be necessary to sustain the benefits and would mitigate against the potential negative impacts of the project. On balance, we consider that funding for the project is warranted, based on its contribution to economic development.
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.
