SH1 Northern Gateway Toll Road cost scope adjustment funding

Applicant

NZ Transport Agency

Purpose

To seek the Board's approval for funding a cost scope adjustment for the NZ Transport Agency's SH1 Northern Gateway Toll Road (Alpurt B2) project in the Auckland Region.

Date of decision

26 November 2008

Resolutions

The NZ Transport Agency Board:

1. approves funding for the cost scope adjustment for the construction of NZ Transport Agency's State Highway 1 Northern Gateway Toll Road project of $12.1 million from N funds;
2. notes that the construction out-turn cost for the project is now estimated at $351 million, which is $7.5 million below the originally estimated target out-turn cost of $358 million, and that the 95%'ile cost was estimated at $377 million;
3. notes the reasons for this decision are as set out in the Reasons for Recommendation section; and
4. agrees to take Board paper 08/11/0093 out of Committee when the Board has published the notice of decision.

Reason for the decision

The funding originally allocated from the combination of the NLTF and Debt Financing was never sufficient to cover the total out-turn cost projected, leaving a shortfall at the outset of $20.4 million. After taking savings and other funding sources into account, the shortfall at completion is currently estimated at $12.1 million.

The project is nearing completion, and expenditure is likely to soon exceed the currently approved funding ceiling. Approval of the application for funding the cost scope adjustment to cover the funding shortfall will enable the completion of the project, which will contribute to GPS targets and the purpose and objectives of the LTMA. In particular, the project will contribute to economic development and the reduction of greenhouse gas emissions by providing a more direct, shorter and easier route on a section of State Highway 1 that is likely to be identified as a critical route under the GPS.

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.