Archive - this information is for reference only and no longer maintained.

This page relates to the 2021-24 National Land Transport Programme.

Introduction

Work category 341 provides for the construction/implementation of low-cost, low-risk improvements to a maximum total approved cost per project of $2 million.

The $2 million implementation approved cost limit is inclusive of all costs such as professional services, administration and related overheads, property and construction/implementation costs.

Qualifying activities 

Work category 341 is available to the following activity classes:

  • Road to Zero (where qualifying activities form part of the Waka Kotahi NZ Transport Agency board-endorsed Road to Zero Speed and Infrastructure Programme Business Case)
  • walking and cycling improvements
  • Local road and state highway improvements

Road to Zero

Walking and cycling improvements

Local road and state highway improvements

Examples of qualifying activities

Examples of qualifying activities include, but may not be limited to:

  • small, isolated geometric road and intersection improvements
  • traffic calming measures
  • traffic management systems
  • surface treatment (safety), including sealing for bridge approaches
  • lighting improvements for safety
  • installation of new traffic signs and markings (including rumble strips) or upgrading these to the current standard
  • provision of guard-railing
  • sight benching to improve visibility
  • walking facilities that comply with the definition for work category 451
    Work category 451: Walking facilities
  • minor engineering works associated with community programmes, such as raised platforms at roundabouts, traffic signals and other pedestrian facilities
  • property and professional services costs associated with the improvement
    Professional services and administration funding policy

We (Waka Kotahi as investor) ask you to discuss with the Waka Kotahi Road to Zero Speed and Infrastructure Programme Development Team any safety-focused activities or projects not included within the Road to Zero activity class. This will ensure an understanding of the project scope and outcomes alignment with the Road to Zero strategic speed and infrastructure model and the impact the new activity will have on existing activities within the programme.

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

Exclusions 

Work category 341 excludes:

  • any local improvement project funded with a funding assistance rate (FAR) other than the approved organisation’s normal FAR
    Normal funding assistance rates
  • any improvement project with an estimated total cost for approval of over $2 million – these must be developed as individual improvements projects under the appropriate work category
  • replacement of bridges and other structures within the definition of work category 216: Bridge and structures renewals – these are to be included in the maintenance, operations and renewals programme.
    Work category 216: Bridge and structures renewals

Conditions of funding 

Funding from work category 341 is subject to conditions concerning project inclusion in the programme as well as the programme’s submission and management.

Conditions of funding for project inclusion 

Each low-cost, low-risk improvements programme must be supported by a list of projects using the Waka Kotahi template, which can be downloaded from Transport Investment Online (TIO).

Transport Investment Online(external link)

The total cost for approval of any multi-party funded low-cost, low-risk improvement project must not exceed $2 million across all funding parties.

The $2 million total approved cost limit includes professional services, administration and related overheads, property and construction/implementation costs.

Professional services and administration funding policy

A low-cost, low-risk roading improvement project cost must be claimed only under work category 341 in a single activity class. It may not be split or claimed over multiple work categories and activity classes.

A project must not be split into more than one low-cost, low-risk improvement project to circumvent the $2 million total approved cost limit.

During the implementation phase, if the low-cost, low-risk activity is expected to exceed the $2 million total approved cost limit (inclusive of fees and administration) the approved organisation or Waka Kotahi (for its own activities) must immediately seek approval to fund the activity under their low-cost, low-risk programme. We will exercise our discretion to either retain the activity within the low-cost, low-risk programme or require the activity to be submitted as a stand-alone activity supported by an appropriate business case, together with the preparation of a corresponding cost scope adjustment to reduce the funding allocation to the low-cost, low-risk programme.

We will give consideration to the following factors:

  • the reason for the activity exceeding the $2 million total approved cost limit
  • the amount by which the activity’s cost is expected to exceed the $2 million total approved cost limit
  • if the activity’s scope changed
  • any other instances a low-cost, low-risk activity within the approved organisation’s or Waka Kotahi (for its own activities) programme exceeds the $2 million total approved cost limit
  • the extent to which risk is already adequately addressed.

Any adjusted cost for an activity will be managed within the approved organisation’s or Waka Kotahi (for its own activities) existing funding allocation for its low-cost, low-risk programme. No additional funding will be provided, meaning the adjustment will need to be offset by the deferral or reduced expenditure of other activities within the approved organisation’s or Waka Kotahi (for its own activities) low-cost, low-risk programme.

Any approved organisation or Waka Kotahi (for its own activities) that commits to expenditure on an activity in excess of the $2 million prior to our approval, does so at its own funding risk.

Conditions of funding (programme submission and management)

Funding approval for the low-cost, low-risk programmes at the start of a new National Land Transport Programme (NLTP) is conditional on each programme being supported by an approved list of projects and on the cash-flows of these projects being captured in the low-cost, low-risk roading improvements template.

The template list is expected to be maintained and updated regularly by the approved organisation and Waka Kotahi (for its own activities). A condition also exists for claiming in the new financial year and so the template must be updated by 31 August of each year. 

This means that by 31 August:

  • of the first year of the new NLTP the template relating to the previous NLTP must be updated with final cash-flows for individual projects
  • for each of the second and third years of the current NLTP, the low-cost, low-risk template must be updated to reflect actual project expenditure in the previous year and cash-flows for committed activities and projects planned to commence in the balance of the NLTP period.

We will place the processing of claims for payment for low-cost, low-risk programmes on hold until the conditions above are met.

Key principles

Key principles for low-cost, low-risk programmes include:

  • The activities in these programmes will be optimised by following a straightforward process to reflect the government’s priorities. Approved organisations and Waka Kotahi (for its own activities) can apply their own assessment framework during their programme prioritisation, but there is a clear expectation they will assess an individual project’s alignment with the appropriate activity class results alignment criteria as set out in our Investment Prioritisation Method.
    2021-24 NLTP Investment Prioritisation Method
  • We prioritise low-cost, low-risk activities (based on the GPS alignment) against other improvement activities in the Road to Zero, walking and cycling improvements, local road improvements and state highway improvements activity classes.
  • If funding availability is an issue across or in any of the above-mentioned activity classes, we may adjust the scope and scale of the low-cost, low-risk programme and its approved allocation based on the priority of activities within the programme for the relevant activity classes. The allocation will also consider the quality of supporting business cases including activity management planning documents.
  • It is important to have flexibility to adjust the programme over the three-year NLTP period, particularly where parts of the programme are not well developed at the time the NLTP is adopted.
  • Projects within a low-cost, low-risk programme will not need to calculate a benefit-cost ratio. They will need to identify the principal benefit the project is seeking to achieve and, if requested, the approved organisation or Waka Kotahi (for its own activities), must demonstrate that value for money has been considered when including the project in the proposed low-cost, low-risk programme.

Links to planning

We expect low-cost, low-risk programmes to be firmly linked to activity management planning documents (eg activity management plans, road safety action plans and regional land transport plans as well as long-term plans).

Funding assistance rate 

The usual funding assistance rate (FAR) is:

or

or

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

Submitting activities for NLTP consideration and funding approval 

Approved organisations and Waka Kotahi (for its own activities) submit these activities using the low-cost, low-risk improvements module in TIO.

Transport Investment Online(external link)

User guides for TIO are available in TIO.

End-of-year carryover 

Between NLTP periods

There is no carryover of funding from one NLTP to the next. The remaining cash flows of any uncompleted projects started in the previous NLTP need to be included in the request for funding for the new NLTP. We will apply the programme funding allocation approved for the new NLTP to these projects.

Within the NLTP period

Within the NLTP period, approved funding from one financial year to the next may be carried over within the low-cost, low-risk programme at the activity class level. There is no funding allocation at a project level and we will apply the remaining approved funding allocations for each activity class in the programme to low-cost, low-risk projects that may span more than one year within the NLTP period.