SH1 Terrace Tunnel and Mt Victoria Tunnel – final investigation and preliminary design funding

Applicant

NZ Transport Agency

Purpose

To seek the Board's approval for funding of the completion of investigation and preliminary design of the NZ Transport Agency's project for safety improvements at the Terrace and Mt Victoria road tunnels on SH1 in Wellington City.

Date of decision

27 February 2009

Resolutions

The NZ Transport Agency Board:

1. approves funding for the final investigation and preliminary design of the NZ Transport Agency's SH1:
   1. Terrace Tunnel Refurbishmentproject at an estimated cost of $3.00 million from N funds; and
   2. Mt Victoria Tunnel Refurbishment project at an estimated cost of $3.80 million from N funds, subject to:
      1. the Chief Executive's approval of a procurement procedure, assessed under s25 of the LTMA, covering the procurement of both projects through an alliance contract, which is to include a hold point when the target price is agreed to enable the Board to confirm the scope and standards for the refurbishment work; and
      2. the NZ Transport Agency's Highway and Network Operations Group undertaking a review of the practicality and cost of undertaking the refurbishments, so as to allow for the transfer of the pedestrian/cycle facility from the old tunnel should the Mt Victoria Tunnel be eventually duplicated;
2. notes that the construction costs for the projects are estimated at:
   1. Terrace Tunnel - $41 million, 95th percentile $66 million and 5th percentile $28 million;
   2. Mt Victoria Tunnel - $44 million, 95th percentile $63 million and 5th percentile $33 million;
3. notes that whilst the probability of a serious event is very low, the need for refurbishment of the tunnels is regarded as urgent and that the projects will be progressed as fast as practically possible;
4. notes that this recognised as a high priority and a report back will be given to the Board on the timeframe for completion of this work;
5. notes the reasons for this decision are as set out in the Reasons for recommendation section; and
6. agrees to take Board paper 09/02/0148 out of Committee when the Board has published the notice of decision.

Reason for the decision

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

The project addresses a risk resulting from fire fighting and ventilation equipment and systems that no longer meets international practise. Road users would be exposed to injury or death in the event of a vehicle fuel fire in one of these tunnels. While the probability of such an event is very low, and there will be disruption to the transport system during construction, the consequences could be very serious. We consider that it would be untenable for the NZTA, now that it is aware of the risk, not to act to address the risk with all possible speed.

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.