This page relates to the 2018-21 National Land Transport Programme.
Benefit realisation assesses whether the expected benefits of an activity/programme/package are being achieved at their expected cost. In the future this will involve reviewing the funded activity/programme/package at different stages of their lifecycle from planning and design through construction and implementation.
Waka Kotahi NZ Transport Agency's benefit realisation assessment has two parts:
Benefit realisation reviews include a review of the performance measures for an activity/programme/package. As part of this, the actual benefits achieved are reviewed against investment performance targets and pre-implementation baseline performance.
For further information about benefit realisation reviews, see Benefit realisation reviews.
Waka Kotahi expects that approved organisations and Waka Kotahi (state highways) will monitor the impacts of their land transport investments. This is good business practice and an important part of the delivery of any project.
To make measuring investment performance easier, Waka Kotahi has developed a framework for investment performance measurement. This includes a range of performance measures. Appropriate measures are selected by approved organisations and Waka Kotahi (state highways), and agreed with Waka Kotahi.
For further information explaining the background, including why performance information needs to be captured and how it works, please see:
Approved organisations and Waka Kotahi (state highways) need to provide performance measures for:
This information is mandatory in order to receive funding approval from Waka Kotahi.
For new activities/programmes/packages under the above thresholds, Waka Kotahi has the option of selecting specific activities/programmes/packages for monitoring. In this case, the affected approved organisation or Waka Kotahi (state highways) will then be asked to provide the performance measures (if they have not already done this).
In future, a 10% sample of further activities/programmes/packages will be selected by Waka Kotahi auditors. Approved organisations and Waka Kotahi (state highways) will need to complete monitoring requirements for these activities.
CloseThere are a number of benefits to be gained for approved organisations, Waka Kotahi (state highways) and Waka Kotahi:
This information will allow Waka Kotahi to:
It will also mean that future audits or reviews can focus more on validation and will allow deeper investigation of outliers (good and poor).
CloseAside from the mandatory requirement to provide performance measures for new initiatives that fit the above criteria, the impact should be minimal.
Approved organisations and Waka Kotahi (state highways) using the business case approach will have been through a ‘benefits mapping’ exercise to determine the benefits that an activity is expected to deliver. Creating a benefit–cost ratio (BCR) will entail measurement and estimation of some key factors. The required performance measures are aligned with these same key factors. Approved organisations and Waka Kotahi (state highways) that use best practice will already be completing benefit realisation reviews for their projects, for accountability purposes and for their own education.
CloseThe requirements have been in effect for funding approvals since 1 July 2012.
Initially only applying to investments over or equal to $10m, for the 2015–18 NLTP the threshold for public transport, walking and cycling was lowered to $4m, and the requirement extended to include all activities with Urban Cycleways Fund contribution.
CloseThe main reasons Waka Kotahi requires this additional information are to:
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