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Transmission Gully PPP is opportunity for a Win Win outcome

Transmission Gully PPP provides opportunity for a Win Win outcome

21 November 2012

"The Government's decision to proceed with a Public Private Partnership for Transmission Gully provides the opportunity to gain a WIN WIN solution for all New Zealanders," says Stephen Selwood, the Chief Executive of the New Zealand Council for Infrastructure Development.

"Advancing Transmission Gully as a PPP will bring certainty to this long- awaited project providing a high quality strategic connection into and out of Wellington.

"The PPP will only proceed if a successful private sector bid to design, build, finance, maintain and operate the new road provides a better overall outcome than more traditional procurement methods.

"This will require bidders to develop innovative solutions to constructing and maintaining the road for the duration of the 30 year concession period, and beyond, maximising the value for every dollar spent.

"Although debt funding will incur capital and interest repayments into the future, it means that people who will use the corridor in the future will also contribute to its cost.

"But of much greater significance, debt funding the project will free up around 1 billion dollars from the National Land Transport Fund that would otherwise have been spent on Transmission Gully over the next five years. This will now be available to fund other projects around New Zealand that have benefits which exceed the cost of finance.

"The net effect will be more transport projects commissioned than previously planned, releasing greater economic and safety benefits for the whole country," Selwood says.

ENDS

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