QTS-085 · Board or committee paper · 2023
New Zealand Upgrade Programme: options to progress delivery (BRI-2919)
Ministerial briefing BRI-2919 (6 December 2023) from NZTA (Waka Kotahi) to Hon Simeon Brown and Hon Nicola Willis, giving options to deliver NZUP within NZTA's funding envelope, as the Minister of Transport requested on 30 November 2023. Most content is removed as out of scope. Queenstown is grouped with 'significant projects in procurement - deliver planned scope'. It is in commercial negotiations, with contract decisions needed within six months. NZTA notes local government partners' fiscal challenges. It repeats that the full package is unaffordable within NZUP and that a reduced scope of critical elements is being progressed, with the remainder a regional priority outside NZUP. Commercial negotiations are most advanced for Queenstown and it requires the least funding. The Ministry of Transport and Treasury support descoping. Ministers are asked to approve completion of the reduced scope package, with a Joint Ministers decision to be sought in January 2024.
What the document says
Context: BRI-2919, 6 December 2023, signed by Brett Gliddon, to the Ministers of Transport and Finance (pp1-2, 9). It follows BRI-2886 (provided 29 November 2023) and responds to the Minister of Transport's 30 November 2023 request for options to deliver NZUP within the NZTA funding envelope (p2). The released version is heavily cut: content on other projects, the delivery graphic (p3), the way-forward diagram (p4) and p6 are removed as out of scope.
Queenstown content: The Queenstown Package is among 'significant projects in procurement - deliver planned scope', in commercial negotiations expected to finish by mid-2024 with industry mobilised and contract decisions needed within six months (paras 16-17, pp4-5). Partner investment is committed (para 17). NZTA is aware of local government partners' fiscal challenges and is discussing funding options and cost reduction levers with councils (para 18). The full package is unaffordable within NZUP, a reduced scope of critical elements is being progressed for travel choice and safety outcomes, and the remainder is a regional priority for investment outside NZUP (para 19). Queenstown's negotiations are most advanced and it requires the least funding (para 20). NZTA recommends completing the reduced scope package (para 22). The Ministry of Transport supports descoping and recommends Ministers agree (para 38, p7). Treasury supports descoping now to avoid further sunk costs (Attachment 1, p10). A decision would be sought from Joint Ministers in January 2024 (para 44, p8).
Recommendation 2 (p8): approve completion of the reduced scope Queenstown Package. Ministerial signature blocks are unsigned in the released copy (p9).
Mass rapid transit: The briefing says nothing about mass rapid transit.
Key figures
- Commercial negotiations for significant projects expected complete by mid-2024; contract decisions within six months (p5)
- No Queenstown dollar figures appear in the released text
Files
- Open Main document (PDF, 859 KB) Opens in a new tab.
Main document
Actions recorded
Joint Ministers to approve completion of the reduced scope Queenstown Package.
Not assessed · Central government / Ministers
Approve completion of the reduced scope Queenstown Package
Seek a decision from Joint Ministers on the Queenstown Package.
Not assessed · NZTA · January 2024
A decision on the Queenstown Package will be sought from Joint Ministers in January 2024
Continue discussions with relevant councils on funding options and cost reduction levers.
Not assessed · NZTA
NZTA is in discussions with the relevant councils around funding options and cost reduction levers
Study cost
Not separately commissioned. This is an internal or corporate document.
Citation
NZTA (Waka Kotahi). New Zealand Upgrade Programme: options to progress delivery (BRI-2919) (2023). BRI-2919.