2018-21 NLTP targeted enhanced funding assistance rates

At its meeting in April 2018, the Waka Kotahi NZ Transport Agency Board agreed to an extension to the targeted enhanced funding assistance rate of 85% for expenditure on LED streetlight replacement programmes to 30 June 2021.

In June 2018, the Waka Kotahi Board agreed that a targeted enhanced funding assistance rate (TEFAR) would apply in the 2018–21 National Land Transport Programme (NLTP) for approved organisations’ new activities with high and very high results alignment, as assessed under the Waka Kotahi Investment Assessment Framework (IAF). At that time, Waka Kotahi indicated these activities would also be included in one of five national priority programmes, including safety.

Decision to limit the TEFAR to the Safe Network Programme

The 2018–21 NLTP funding constraints mean the application of a TEFAR to a range of national priority programmes is no longer possible.

Effective 17 May 2019, a TEFAR will only be applied to activities in the Safe Network Programme that have a high or very high results alignment. TEFAR applies to these safety activities, whether they are over $1 million or are included in a low cost, low risk programme for delivery in 2018–21.

If approved organisations have an existing funding approval for a TEFAR for a phase of work under the previous criteria, this will not change ie the change is only prospective.

Making these adjustments will allow more high priority activities to be funded and will target the GPS emphasis on safety. This will continue to encourage local government to invest in safety improvements to make local roads safer.

Approved organisations must meet the following criteria to ensure activities are eligible for a TEFAR:

1. Activities must be included within the Safe Network Programme:

• The activity is a roads and roadside, speed management or level crossing activity within the Safe Network Programme.
• The activity has safety as its primary benefit.
• The activity meets the high or very high results alignment criteria for safety.
• Note, a TEFAR applies to these safety activities, whether they are over $1 million or are included in a low cost, low risk programme for delivery in 2018–21.
• The confirmation of eligibility of other activities no longer applies, unless a separate funding approval has already been given at a TEFAR.

2. All activities must be substantially (80%) completed by June 2021:

• The requirement to be substantially completed by June 2021 will apply to activities that are eligible for a TEFAR or any additional activities that have been enabled by a TEFAR and brought forward for investment.
• If this requirement is not met, the normal funding assistance rate will be applied retrospectively.

3. Monitoring the TEFAR:

• Activities and progress will continue to be monitored and reported on quarterly through the programme monitor and regular engagements between Waka Kotahi and approved organisations.
• Waka Kotahi expects any approved organisation that has activities with TEFAR approval will notify Waka Kotahi if any of the above conditions will not be met.

From 17 May 2019, the TEFAR will only be applied to eligible projects in the Safe Networks Programme. TEFAR applies to these safety activities, whether they’re over $1 million or are included in a low cost, low risk programme for delivery in 2018–21.

The 85% TEFAR for accelerated LED street-light programmes still applies.

If you have existing funding approval for a TEFAR for a phase of work outside the Safe Network Programme, that won’t change. The condition that the phase of work needs to be 80% or more complete within the 2018–21 NLTP still applies.

We’ve also removed the requirement for approved organisations to reinvest local share savings back into transport-related projects.

Due to the 2018–21 NLTP funding constraints, a broad application of the TEFAR is no longer possible.

If Waka Kotahi had continued with the TEFAR policy as it was originally set out, many high-priority activities in the NLTP could not be funded.

Making these adjustments will allow more high-priority activities to be funded and targets our emphasis on safety.

There is expected to be funding available in the local road improvements and regional improvements activity classes to fund safety activities with a high or very high safety results alignment.

GPS 2018 identified safety as one of the strategic priorities to deliver over the 2018–21 period. TEFAR will encourage local government to invest in safety improvements to make local roads safer.

Local government has told us that at this point of the NLTP, certainty about what activities are likely to be funded is most important for finalising annual plans for 2019/20.

We know there have been concerns about TEFAR policy requirements and the process to get funding approval. Consulting about how to change the TEFAR policy would have meant further delays and lack of certainty.

We want to support local government to focus on getting on with delivery.

The Safe Network Programme is a prioritised programme of proven safety interventions on high-risk routes across New Zealand. The programme has adopted the Safe System approach focusing on safe roads and roadsides, safe and appropriate speeds and safe rail level crossings to make roads more forgiving of human error which will lower trauma rates.

For further information see the Safe Networks Programme.

Activities in the Safe Network Programme include improvements that are primarily focused on addressing high-safety risks on roads and roadsides, speed management and level crossings. These activities must have a high or very high safety results alignment as assessed under the Waka Kotahi Investment Assessment Framework (IAF).

These activities can be over $1 million or can be included in a low cost, low risk programme for delivery in 2018–21.

For more information see the Safe Network Programme.

Low cost, low risk activities, other than safety, will continue to be funded at normal FAR. As we’ve said previously, the approved funding allocation for each approved organisation's low cost, low risk programme doesn’t increase as a result of projects being eligible for a TEFAR.

Safety activities in a low cost, low risk programme will need to be in a separate TEFAR spreadsheet approved by your regional system management advisor, who can confirm if the safety activity meets the eligibility requirements for a TEFAR.

Eligibility will only apply to activities in the Safe Network Programme. The confirmation of eligibility of other activities no longer applies, unless a separate funding approval has already been given at a TEFAR. 

The LED streetlighting conversion programmes continue to qualify for an 85% TEFAR.

You can contact your region’s partnership investment advisor for TEFAR queries. If you’d like to discuss the low cost, low risk programme, contact your region’s system management advisor.