Applicant
NZ Transport Agency
Purpose
To seek the Board's approval for funding the detailed design and construction of the NZTA's SH2 Tauranga Eastern Link RONS, a component of the Western Bay of Plenty Eastern Corridor package in the Bay of Plenty region.
Date of decision
17 December 2009
Resolutions
The NZ Transport Agency Board:
- a. approves funding for the detailed design and construction of enabling works for the NZ Transport Agency's (NZTA's) SH2 Tauranga Eastern Link Road of National Significance (RoNS), at an estimated cost of $35 million from R funds;
- b. approves funding for the detailed design and construction of the NZTA's SH2 Tauranga Eastern Link RoNS at an estimated cost of $340 million, $110 million to come from C funds and the balance from R and N funds, subject to:
- i. as a condition precedent, an Order in Council to enable the collection of tolling revenue for the new motorway from Domain Road to Paengaroa;
- ii. as a condition subsequent, execution of a Memorandum of Understanding between the NZTA and Western Bay of Plenty District Council, prior to the completion of construction, for the existing State Highway 2 specifying the works required to adapt its form and function to a local arterial after its revocation; and
- iii. as a condition subsequent, execution of a Memorandum of Understanding by the relevant parties, prior to the physical start of construction specifying the cost sharing arrangements relating to the full scope of the project, not just the components covered under this funding application;
- c. notes that debt funding of $115 million, to be provided from tolling as a contribution to the construction of the new motorway component of the project, will be available in 2013/2015;
- d. notes that all tolling infrastructure and operations costs are part of the tolling business case and are not funded as part of this project from the National Land Transport Programme;
- e. notes that the upgrade of the Maunganui Road/Girven Road intersection is critical to the effectiveness of the Tauranga Eastern Corridor transportation network, and that its investigation will be advanced early in 2010 to identify the preferred option for alignment with the construction of the Tauranga Eastern Link RoNS;
- f. notes that the total construction cost (including property and escalation) is estimated at $545 million, that the 95th percentile construction cost is estimated at $608 million and the 5th percentile at $475 million;
- g. notes that the profile for the activity has been assessed as HML and that the reasons for this decision are as set out in the Reasons for recommendation section; and
- h. agrees to take Board paper 09/12/0308 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 strategic fit, Medium effectiveness and Low efficiency.
- The TEL project contributes to the NZTA’s Investment and Revenue Strategy, intended to give effect to the GPS. The project will also contribute mainly to the LTMA objective of assisting economic development through its positive impact on reliable access to markets and facilitating economic growth in line with the area's SmartGrowth strategy.
- A negative impact is its potential to induce travel. Despite this, we consider that the benefits derived from providing certainty to the market from an investment and planning perspective and the regional and national transport benefits justifies the high priority assigned.
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.
