Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Transmission Gully PPP brings innovative approach

Transmission Gully PPP brings innovative approach to transport infrastructure investment in NZ

Media Statement
29 July 2014

“After many decades of frustration, Wellingtonians can now look forward to a resilient and efficient roading connection to the rest of the North Island, due in large part to alternate financing arrangements which overcome institutional barriers to major transport investment,” says Stephen Selwood, CEO of the New Zealand Council for Infrastructure Development.

“The billion-dollar Transmission Gully mega-project is a vital link in the Wellington Northern Corridor Road of National Significance, providing a much more effective strategic connection between Wellington city and the territories north of Paekakariki. Employment centres, activities and, potentially, entire industries will be made possible by improved connectivity between the lower North Island’s population centres and Wellington’s central business district, port and airport.

“The new corridor will replace the fragile coastal segment of State Highway 1 north of Tawa which is vulnerable to both flooding and earthquakes, and will save many lives on what is currently one of the most hazardous stretches of road in the country.

“Despite the clear strategic merit of this project, Transmission Gully has been deferred for decades because of its comparative high cost. Conventional cost-benefit analysis does not adequately recognise regional growth potential, land use and other transformational benefits which lie at the very heart of Transmission Gully and the pay-as-you-go National Land Transport Fund is not geared for billion-dollar projects which consume such a disproportionate share of annual resources.

“The Government’s elevation of inter-regional investment through the RoNS initiative and NZTA’s expansion of transport evaluation to recognise the importance of strategic corridors like Transmission Gully both deserve commendation for overcoming the barrier posed by narrow economic analyses.

“The funding challenge was overcome by the first ever use of private finance in a New Zealand transport project.

“By employing a public-private partnership or PPP model, NZTA are able to leverage private capital to advance Transmission Gully as a single project. Not only does this enable the economic, safety and strategic benefits of the project to be brought forward, but the successful Leighton-led consortium have been able to demonstrate over the past year that efficiencies in project delivery and risk transfer away from tax payers has been sufficient to offset the cost of private debt.

“This is a significant innovation in transport infrastructure investment in New Zealand. It caps off a mixed week following the Environmental Protection Authority’s consent for Puhoi to Warkworth, but cancellation of approval for the Basin Flyover.

“Maybe it’s time to go to the market and seek innovative solutions to solving transport connectivity across, around or under the Basin Reserve in Wellington?” Selwood asks.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news