(SH1) Wellington Northern Corridor – RoNS endorsement and funding for investigation, design and property purchase

Applicant

NZ Transport Agency

Purpose

To seek the Board’s endorsement of the NZTA’s (SH1) Wellington Northern Corridor Road of National Significance (RoNS) in the Wellington and Manawatu-Wanganui Regions and its approval for funding the investigation and design of the RoNS and for funding the property purchase associated with the RoNS.

Date of decision

26 November 2009

Resolutions

The NZ Transport Agency Board:

1. endorses the NZ Transport Agency’s (NZTA’s) (SH1) Wellington Northern Corridor RoNS from north of Levin to Wellington Airport;
2. approves funding as set out in the table below for the investigation and design of NZTA’s (SH1) Wellington Northern Corridor RoNS and for property purchase associated with the RoNS, at a total estimated cost of $386.2million from N and C3 funds, subject to:
   1. a hold point at the macroscope of each element of the RoNS to enable the Board to confirm the preferred option;
   2. a hold point at the end of investigation of each element before detailed design commences to enable the Board to consider the scheme assessment and confirm funding for detailed design;
   3. the procedures employed to procure the investigation and design of each element either complying with the NZTA’s approved procurement strategy or, where the procedures do not comply with the strategy, approved as special procedures by the Group Manager Regional Partnerships and Planning; and
   4. achievement during investigation of the outstanding conditions of funding and funding outcomes for the Basin Reserve and Linden to MacKay’s Crossing (Transmission Gully) elements of the RoNS set out in Board resolutions 08/12/0121 and 08/06/3115;

3. notes that funding has been approved previously for investigation of the Basin Reserve ($3.3million) and Linden to MacKay’s Crossing (Transmission Gully $27.1million) elements and for property purchase associated with Transmission Gully ($37.2million);
4. notes that the funding allocated in the 2009/2012 National Land Transport Programme (NLTP) to the New and improved infrastructure for state highways activity class, is considered sufficient to cover the funding requested in this application and that the NZTA’s Highway and Network Operations Group is expected to purchase services for and manage the activities within this allocation;
5. notes that the construction cost for the (SH1) Wellington Northern Corridor RoNS is estimated at $3.24 billion, the 95th percentile cost is estimated at $3.93 billion and the 5th percentile at $2.23 billion, recognising that many of the projects in the RoNS are at an early stage of development, and that their cost estimates are of rough order level only; and
6. agrees to take Board paper 09/11/0292 out of Committee when the Board has published the notice of decision.

Reason for the decision

The assessment profile for the Wellington Northern corridor RoNS (WNCR) has been determined as being of High strategic fit, High effectiveness and Low economic efficiency.

The WNCR contributes to the NZTA’s Investment and Revenue Strategy, which is intended to give effect to the GPS issued May 2009, and contributes to the economic development and safety objectives of the LTMA.

The WNCR is an integral component in a series of transport packages along the Northern Corridor that integrate transport with networks and land use across modes and organisations.

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.