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Govt fudging figures over Transmission Gully

29 July 2014

Govt fudging figures over Transmission Gully

The government is fudging the figures over Wellington road project, Transmission Gully, the Green Party said today.

The New Zealand Transport Agency (NZTA) said today it had let the contract to a Public Private Partnership (PPP) for “a net present cost of $850 million”.

“The Government needs to come clean. In fact, the cost is $125 million per year for 25 years, so the total cost is over $3.13 billion for 27 kilometres, which works out at over $115 million per kilometre,” Green Party spokesperson Julie Anne Genter said.

“NZTA says the contract cost $25 million less than it would cost through conventional means, but it spent over $30 million just on the contracting process.

“The PPP is not a way of saving money, it is a way of hiding an expensive loan using the private sector.

“This project will be designed, constructed and maintained by private interests and these are largely foreign interests.

“Japan’s Bank of Tokyo-Mitsubishi UFJ, will be the lead financier of the PPP while Australian firm Leighton Contractors will also play a lead role.

"Public-Private Partnerships are supposedly about getting value for money but, once again, we see they are in fact cash cows for financiers, lawyers, and foreign companies while taxpayers foot the bill.

“All up, Transmission Gully is expected to deliver only $360-$500 million worth of benefits. The opportunity cost is the billions we will not be spending on smart, green alternatives that would have made it easier for people to get around, and urgent safety upgrades to roads that are used by more people every day,” Ms Genter said.


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