WC 004: programme business case development

This page relates to the 2024-27 National Land Transport Programme.

Introduction

Work category 004 provides for funding assistance for the costs of preparing programme business cases under the Business Case Approach, including supporting evidence collection and model application.

Business Case Approach guidance

Qualifying activities

Work category 004 is available to the investment management activity class.

Investment management

Examples of qualifying activities

These include, but may not be limited to:

• collecting evidence to inform specific components of the programme business case
• applying modelling, for example through the use of a transport model or network operating plan, to test assumptions within the business case, or to forecast demand
• developing a regional, inter-regional or sub-regional programme business case

You can discuss with us (NZ Transport Agency Waka Kotahi (NZTA) as investor) whether other potential activities not listed above might also be eligible for inclusion in this work category.

Exclusions

Work category 004 excludes:

• the costs associated with the development of a strategy or activity strategic case – these are not eligible for funding from the National Land Transport Fund (NLTF)
• the development of a business case that is intended to directly result in funding approval for implementation of the programme in an activity class other than investment management
• development or upgrading of transport models – these are funded under work category 002
  Work category 002: transport model development

• preparation or improvement of activity management plans, procurement strategies, road safety action plans or regional public transport plans – these are funded under work category 003
  Work category 003: activity management planning improvement

• studies that do not contribute to the objectives of the approved programme business case
• detailed option selection or any component that is a part of investigating an activity – these are part of the cost of the indicative or detailed business case
• regional land transport planning preparation and management, which should be funded from work category 001
  Work category 001: regional land transport planning management

Developing a programme business case and funding application

We provide guidance on developing a programme business case, which summarises the key elements that make up a programme business case and importantly its purpose and rationale.

Programme business case

Funding applications for project business cases follow a clearly defined process that considers the achievement of specific outcomes derived from government policy. Both the process and policy outcomes are subject to change in response to changing government priorities. You will find full and current information on the process we use to consider funding applications in the guidance for programme business cases.

Funding assistance rates

The usual funding assistance rate (FAR) is:

• the approved organisation's normal FAR
  Normal funding assistance rates

or

• 100% of the costs of NZTA (for its own activities).

Submitting activities for NLTP consideration and funding approval

Approved organisations and NZTA (for its own activities) submit these activities using the programme business case template in TIO.

The template consists of two parts:

• the funding application to develop the programme business case
• the application seeking support of the completed programme business case.

Transport Investment Online(external link)

For guidance on using TIO, see the TIO learning and guidance page on our website.

Transport Investment Online (TIO) learning and guidance

Change management

We must approve any change to the scope of an approved phase to develop a programme business case before the approved organisation or NZTA (for its own activities) can proceed with the change. Consideration of the guidance in this knowledge base may be helpful in ensuring whether the scope change is appropriate in terms of the content of a programme business case.

TIO will automatically carry over the unspent allocation every year. It is vital that approved organisations and NZTA (for its own activities) declare any unused allocation for completed projects by making a cost–scope adjustment via the reviews module in TIO.