Memo: NZUP Queenstown

Context: Memo dated 10 March 2023 from two NZTA managers to senior managers, copied to other staff, on the NZUP Queenstown package (p1).

Current situation (p1): Kā Huanui a Tāhuna provided a 30% design, which BondCM used to prepare an independent estimate. The TOC exchange on 3 February 2023 showed a difference of about $143m: independent estimate $207.4m against Alliance estimate $350.4m (part of the sentence is removed as out of scope). After further review the gap reduced, but the authors saw no merit in continuing until affordability was known; BondCM said reconciliation would be almost impossible because of the size of the gap and the number of risks put back on the owners. Key differences: risk allocation, rates, productivity and forecast completion date.

Associated work (pp1-2): The Queenstown Business Case problem statements and investment objectives were reviewed and still considered appropriate. An internal prioritisation identified Option 5 as the likely preferred option: reconfiguration of the SH6/SH6A intersection (BP roundabout), expansion of the Frankton Bus Hub, and the Howards Drive roundabout. The BP roundabout and bus hub are described as fundamental to prioritising public transport; Howards Drive is a safety project linked to the Ladies Mile Masterplan priority development area (p2). Further Alliance cost information was due around 17 March to confirm affordability. QLDC councillors had been briefed in February, but a process to agree prioritisation was still needed.

Next steps (p2): Governance Group report (March 2023); agree a prioritisation process with QLDC and ORC staff (March/April 2023); brief QLDC and ORC elected members (April/May 2023); report back to the Governance Group (May/June 2023).

Mass rapid transit: The memo says nothing about mass rapid transit.