This page relates to the 2018-21 National Land Transport Programme.
This section sets out Waka Kotahi NZTransport Agency's funding assistance policy and describes the methodology for determining approved organisations' normal funding assistance rates (FARs). It also describes variations to normal FARs and their application.
FARs, in conjunction with other land transport investment tools and interventions, exist to:
The seven principles that underlie the Waka Kotahi funding assistance framework are:
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The FAR framework is based on five key components.
FARs are available by National Land Transport Programme (NLTP) period.
The following links provide related information:
You can acces the funding assistance policy and rates applicable prior to the 2015-18 NLTPat the following link:
CloseFollowing engagement with approved organisations and interested transport sector groups, Waka Kotahi developed its methodology for determining normal FARs, which take into account factors materially affecting delivery and are robust, repeatable, stable and independent.
A year prior to the start of each NLTP, the inputs will be updated with the latest available information and the normal FAR for each approved organisation recalculated. The changes in FARs, if any, will reflect movements in centreline kilometres, capital values, rating units and the index of deprivation.
Inputs for each council are:
Parameters and definitions are:
Steps include:
See the methodology flow diagram below for a visual representation of the steps involved in determining the FARs.
CloseIn November 2020 Waka Kotahi undertook a thorough review of the FAR model for the last three NLTP periods. The review identified that some of the data sets used in the 2018-21 FARs model were not the most current available at the time. This resulted in changes in the 2018-21 FARs for 17 approved organisations.
Waka Kotahi made a decision not to implement changes in FARs for the 2018–21 NLTP that would have resulted in reductions in some approved organisations' end of transition FARs. The model shows the reductions as calculated.
View the corrected FAR model used by Waka Kotahi to determine normal FARs. [XLSX, 1.1 MB]
The superseded model previously used by Waka Kotahi can be accessed at this link. [XLSX, 554 KB](external link)
Most approved organisations will have made the transition to normal FARs by 2018/19, due to the Waka Kotahi decision to accelerate transition for those with increasing FARs. The remaining five with decreasing FARs will make the transition by 2023/24.
For details about the the review process and how approved organisations have been transitioned to their target normal FAR, please visit the FAR review site.(external link)
Funding approvals include the FARs that will apply during each financial year of an activity. They are made for a phase or business case of an improvement project, eg funding would be approved for the single stage business case or implementation phase, not for the project as a whole.
Waka Kotahi has developed a policy for the use of targeted enhanced funding assistance rates that may be applied in exceptional circumstances (refer to the Operational policy for application of targeted enhanced funding assistance rates for details).
For the 2018-21 NLTP, a targeted enhanced funding assistance rate (TEFAR) may be applied to activities in the Safe Network Programme(external link) that have a high or very high results alignment (see 2018-21 NLTP- Targeted enhanced funding assistance rates for details). Once the activity has funding approval at the TEFAR, approved organisations are expected to deliver 80% of the activity in the 2018-21 NLTP period. Waka Kotahi will monitor progress to ensure timely delivery.
Lower priority activities of low or medium results alignment, and activities that are not included in a jointly developed national programme continue to be funded at a normal FAR.
The following variations to normal FARs will apply: