QTS-056 · Business case chapter or appendix · 2020
Queenstown Business Case – Commercial Case
Part of: Rapid transit evidence →
The Commercial Case (Final, 16 November 2020; Stephen Carruthers) explains how the Queenstown Business Case preferred programme will be procured, consented and how property will be acquired. NZUP and CIP are to be delivered with Wakatipu Active Travel Network Stage 1 through the Wakatipu Transport Programme Alliance. Waka Kotahi and QLDC released the RfT on 2 October 2020, with award expected pre-Christmas 2020, four-year delivery and an estimated $200M budget. The unfunded remainder, including the Frankton offline transport hub and 'Offline PT infrastructure and service improvements', is to be procured traditionally as discrete, competitively tendered phases. Most risks are expected to stay with QLDC or Waka Kotahi. Six high-level risks are listed with Way to Go and Waka Kotahi owners. Property is on the critical path. Acquisition follows the Public Works Act and takes at least 18 months; costs include $17.997m for the Stanley Street hub and $82.3m for Arterials Stage 2. Of 37 Frankton to Queenstown consent locations, about half have challenges; the Frankton offline PT hub needs a new designation.
What the document says
Context and purpose: The Commercial Case covers procurement, risk allocation, payment mechanisms, contract management, property and consenting (p.4). The programme has three parts: NZUP (Crown-funded), CIP (Crown-funded) and an unfunded remainder (p.4).
Alliance: 'Waka Kotahi and QLDC released an RfT for the Wakatipu Transport Programme Alliance on 2 October 2020'. It covers professional services and physical works for NZUP, CIP and Stage 1 of the Wakatipu Active Travel Network, with award expected pre-Christmas 2020, four-year delivery and an estimated budget of $200M (p.4).
Remainder: The remainder needs LTP and NLTP approval. It comprises TDM, PT services, on-road PT, Stanley/Shotover with bus hub stage 1, Town Centre stage 2, Arterials stages 2 and 3, Stanley Street bus hub stage 2, the Frankton offline transport hub, and offline PT infrastructure and service improvements. It is to be procured through GETS using price/quality (p.4).
Risk: Most risks remain with QLDC or Waka Kotahi under traditional procurement and are largely transferred under the alliance (pp.4-5). Table 1 lists risks of funding misalignment, property, slow decisions, interface misalignment, partner misalignment, loss of community support and design changes. Owners are Shaun Hubbard (Way to Go) and Tony Sizemore (Waka Kotahi) (p.5). Standard payment mechanisms apply (pp.5-6), and contracts are managed under QLDC and Waka Kotahi policies (p.6).
Property: The Property Group's strategy is in Appendix F02. Property is on the critical path, and acquisition takes '18 months but can take much longer'. Negotiations are recommended to commence after approval (p.6). Table 2 costs include the SH6/6A intersection ($4.51m), Stanley Street hub ($17.997m), Arterials Stage 1 ($32.27m) and Arterials Stage 2 ($82.35m) (pp.6-7).
Consenting: Of 37 F2Q locations, 'approximately half of the sites have some consenting challenges' (p.7). Required approvals and assessments are listed for the town centre and arterials (pp.9-10).
Mass rapid transit: The report does not mention mass rapid transit. It lists 'Frankton offline transport hub' and 'Offline PT infrastructure and service improvements' in the unfunded remainder (p.4). Item 13, the 'Frankton offline PT Hub', 'Requires new designation'; the 'Site subject of existing QLDC designation, which has priority'; and it involves 'Displacement of recreational land' (p.8). No procurement model specific to an offline system (for example PPP) is discussed.
Key figures
- Alliance RfT released 2 October 2020; estimated alliance budget $200M; four-year delivery (p.4)
- Property acquisition at least 18 months (p.6)
- Property costs: SH6/6A intersection $4,507,250; Stanley St PT hub $17,997,000; Arterials Stage 1 $32,274,063; Arterials Stage 2 $82,346,503 (pp.6-7)
- 37 F2Q consenting locations; about half with challenges (p.7)
Rapid transit
Mass rapid transit means light rail, gondola/cable car, bus rapid transit and similar dedicated rapid-transit technologies. It does not include ordinary bus services or ferries.
Passing. Mentions mass rapid transit without assessing it.
Lists offline PT infrastructure and Frankton offline hub in unfunded remainder; hub needs new designation
The remainder of the preferred programme 'requires approval through the Long Term Plan and National Land Transport Programme before it will proceed'. Its scope includes 'Frankton offline transport hub' and 'Offline PT infrastructure and service improvements' (p.4). These are to be procured like other items, 'as discrete pieces of work following the traditional approach' (p.4). The consenting table records for the 'Frankton offline PT Hub': 'Requires new designation • Site subject of existing QLDC designation, which has priority • Displacement of recreational land' (p.8). No mass rapid transit or alternative delivery model is discussed.
"Offline PT infrastructure and service improvements." (p.4) | "Frankton offline PT Hub • Requires new designation • Site subject of existing QLDC designation, which has priority • Displacement of recreational land" (p.8)
Files
- Open Main document (PDF, 1.7 MB) Opens in a new tab.
Main document
Actions recorded
Deliver NZUP, CIP and Wakatipu Active Travel Network Stage 1 through the Wakatipu Transport Programme Alliance (estimated budget $200M, ~4 years).
Not assessed · NZTA · Contract award pre-Christmas 2020; four years
Waka Kotahi and QLDC released an RfT for the Wakatipu Transport Programme Alliance on 2 October 2020
Procure the remainder of the programme (TDM, PT, Stanley/Shotover, Town Centre 2, Arterials 2-3, hubs, offline PT) as discrete, competitively tendered phases via GETS.
Not assessed · Subject to LTP/NLTP approval · Relevant to rapid transit
the remainder of the preferred programme is procured and delivered as discrete pieces of work following the traditional approach
Each project to develop its own risk register for its next stage.
Not assessed · Next stage
requires that the individual projects develop their own risk registers
Commence negotiations for all required property following business case approval (Public Works Act).
Not assessed · Following business case approval
recommended that negotiations commence for all required property following the approval
Develop more detailed consenting strategies in the next stage.
Not assessed · Next stage
More detailed strategies will be developed in the next stage of the project
Obtain a new designation for the Frankton offline PT hub (site has existing QLDC designation; displaces recreational land).
Not assessed · Relevant to rapid transit
Frankton offline PT Hub • Requires new designation
Study cost
Costed with the parent document.
Citation
Way to Go partnership, NZTA (Waka Kotahi), QLDC, ORC. Queenstown Business Case – Commercial Case (2020).