This page relates to the 2021-24 National Land Transport Programme.
Work category 532 provides for the construction/implementation of low-cost, low-risk public transport improvements, to a maximum total approved cost per project of $2 million.
The $2 million implementation cost for approval is inclusive of all costs such as professional services, administration and related overheads, property and construction/implementation costs.
Note: For passenger services activities, the $2 million threshold is the net implementation cost to be shared by the regional council and us (Waka Kotahi NZ Transport Agency as investor) after forecast farebox revenue has been accounted for over the proposed duration of the activity for which approval is sought (a maximum of three years). For example, the net cost of a three-year service is estimated at $1.8 million based on the following gross cost and revenue:
Therefore, the net cost is the within the maximum total approved cost and would be an eligible activity.
Work category 532 is available to the following activity classes:
Public transport services and infrastructure
Examples of qualifying activities include, but may not be limited to:
You can discuss with us whether other potential activities not listed above might also be eligible for inclusion in this work category.
Work category 532 excludes:
Funding from work category 532 is subject to conditions concerning project inclusion in the programme as well as the programme’s submission and management.
Each low-cost, low-risk improvements programme must be supported by a list of projects using the Waka Kotahi public transport improvements template. This template can be downloaded from Transport Investment Online (TIO).
Transport Investment Online(external link)
User guides for TIO are available in TIO.
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 includes professional services, administration and related overheads, property and construction/implementation costs.
Professional services and administration funding policy
A low-cost, low-risk public transport improvement project cost must be claimed only under work category 532 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) then 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 a 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:
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 organnisation’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.
Funding approval for 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 public transport 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:
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 for low-cost, low-risk programmes include:
We expect low-cost, low-risk programmes to be firmly linked to activity management planning documents (eg regional public transport plans, activity management plans, regional land transport plans as well as long-term plans).
The usual funding assistance rate is:
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)
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, 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.
