QTS-086 · Board or committee paper · 2023
NZUP Governance Group update (Investment and Delivery Committee, 11 December 2023) - extract
Marked 'In confidence' by its author. Publicly released by NZTA / OIA-20263 on 30 Jan 2026.
Extract of the NZUP Governance Group update to the Waka Kotahi Investment and Delivery Committee (11 December 2023), for decision. Management recommends the Board: approve the reduced scope NZUP Queenstown Package (SH6/6A intersection, Frankton bus hub, Howards Drive roundabout) at an estimated $250 million; approve $120 million additional funding, bringing total package funding to $250 million; endorse seeking Joint Minister endorsement because of the impact on other NZUP choices; and delegate to the Group General Manager Transport Services authority to vary the alliance contract up to $250 million. It cites Queenstown delivery constraints as the main cost reasons, notes QLDC's fiscal challenges for three waters upgrades, and says the funding would essentially require another NZUP project to be stopped. A graphic shows NZUP's $6.5B total funding allocation against a $8B+ P95 cost risk.
What the document says
Context: Paper to the Investment and Delivery Committee meeting of 11 December 2023, 'For decision', ELT owner Brett Gliddon and issue owner Mark Ratcliffe, NZUP Governance Group Independent Chair (p1). Non-Queenstown content is removed.
Recommendations (p1): Management recommends the Board approve the reduced scope at an estimated $250 million; approve additional funding of $120 million, bringing the total to $250 million; endorse seeking Joint Minister endorsement; and delegate authority to the Group General Manager Transport Services to approve an alliance contract variation and related arrangements up to $250 million.
What you need to know (pp2-3): Estimates significantly exceed the $130 million allocation. Following April 2023 direction, the prioritised package was designed and reconciled; QLDC and ORC agree it is most important for the mode-shift, active travel and safety outcomes sought in the business case. The reduced package is estimated at $250 million ($120 million over), and independent reconciliation is advanced. Main cost reasons are design development and Queenstown constraints: no lengthy night works, no viable long-term detour, and a limited resource pool (p2). As presented to the Board in September 2023, the programme team recommends (and the Governance Group supports) the extra $120 million (p3). QLDC has signalled fiscal challenges affecting three waters upgrades at SH6/6A. Funding must come from remaining NZUP projects, essentially requiring one to be stopped, hence Joint Minister endorsement before award. The delegated contract variation would follow reconciliation, within $250 million, and is subject to Joint Ministers' endorsement. The remainder of the package remains a priority for further investment (p3). The p3 graphic shows projects contractually committed $2.3B+, award contracts $1.8B+ ($4.1B+ cumulative), total funding allocation $6.5B and P95 cost risk $8B+.
Mass rapid transit: The extract says nothing about mass rapid transit.
Key figures
- Reduced scope estimated cost $250 million (p1)
- Additional funding $120 million; total package funding $250 million (p1)
- Current funding allocation $130 million (p2)
- NZUP graphic: projects contractually committed $2.3B+; award contracts $1.8B+ ($4.1B+); total funding allocation $6.5B; P95 cost risk $8B+ (p3)
Files
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Main document
Actions recorded
Board to approve the reduced scope NZUP Queenstown Package (SH6/6A intersection, Frankton bus hub, Howards Drive roundabout) at an estimated cost of $250 million.
Not assessed · NZTA · December 2023
Approves the reduced scope for the NZUP Queenstown Package
Board to approve additional funding of $120 million, bringing total package funding to $250 million.
Not assessed · NZTA · December 2023
Approves additional funding of $120 million
Board to endorse seeking Joint Minister endorsement for delivery of the reduced scope package, given its impact on remaining NZUP choices.
Not assessed · NZTA · Before award to alliance
Endorses seeking Joint Minister endorsement
Board to delegate authority to the Group General Manager Transport Services to approve an alliance contract variation up to $250 million.
Not assessed · NZTA · After reconciliation; subject to Joint Ministers endorsement
Approves the delegation of authority to the Group General Manager Transport Services
Continue discussions with QLDC on funding options for three waters upgrades at SH6/6A.
Not assessed · NZTA
The project team is continuing discussions with council around funding options for this work
Study cost
Not separately commissioned. This is an internal or corporate document.
Citation
NZTA (Waka Kotahi). NZUP Governance Group update (Investment and Delivery Committee, 11 December 2023) - extract (2023).