SH1 Victoria Park Tunnel – construction funding

Applicant

NZ Transport Agency

Purpose

To seek the Board’s approval for funding the detailed design and construction, including property purchase, of the NZ Transport Agency’s Victoria Park Tunnel project, identified by the government as a road of national significance, in Auckland.

Date of decision

29 May 2009

Resolutions

The NZ Transport Agency Board:

1. approves funding for the detailed design and construction, including $45.45 million property purchase, of the NZ Transport Agency’s Victoria Park Tunnel project at an estimated cost of $406.45 million, of which $300 million will be funded from R funds and $106.45 million from N funds;
2. approves the NZTA’s use of a Project Alliance procurement procedure for the construction of this project;
3. notes that the 95th percentile construction cost is estimated at $466 million and the 5th percentile at $370 million;
4. notes the reasons for this decision are as set out in the Reasons for recommendation section; and
5. agrees to take Board paper 09/05/0196 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 medium efficiency.

The project will contribute mainly to the LTMA objective of assisting economic development through its positive impact on travel times and trip reliability. It will also contribute to assisting public health through reducing emissions associated with severe congestion.

A negative impact is the potential for the improved package of projects, of which Vic Park is part, to increase travel demand for single occupancy vehicles. In the longer term, some form of travel demand management likely will be needed to sustain the benefits. Despite this, we consider that the Central Motorway Improvements package is of very high priority, given the regional and national transport benefits it will provide.

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.