NZ Upgrade Programme: Queenstown Package way forward (OIA-20263, 30 January 2026)

Context and purpose: BRI-2973, 'NZ Upgrade Programme: Queenstown Package way forward', dated 1 February 2024 and signed by Brett Gliddon (pp1, 6), seeks endorsement from the Minister of Transport and Minister of Finance of the NZTA Board's 11 December 2023 decision to deliver a reduced scope Queenstown Package at an estimated $250 million (p2). The Ministry of Transport and Treasury were consulted (p2).

Context (pp2-3): Earlier briefings (BRI-2886, BRI-2919) advised the package was unaffordable within its $130 million allocation. From April 2023 NZTA progressed a reduced package (BP intersection, Frankton bus hub, Howards Drive roundabout), which NZTA assessed as the most critical elements and QLDC and ORC agreed were most important. The full scope also included SH6/6A bus priority, SH6 bus lanes and pedestrian improvements. Peak day population is projected to rise from 103,000 in 2021 to 204,000 in 2051, and the 2020 detailed business case estimated $670 million to $1.2 billion of economic losses over 40 years without investment (p3).

Cost (p3): The reduced package is $250 million, a P50 estimate including a risk-adjusted contingency of $20 million. It was independently reconciled and value engineered. Reasons given: short construction season, imported labour and materials, 36,000 vehicles per day with no viable detour, no lengthy night works, an enlarged intersection for bus priority, walking, cycling and bus hub facilities, and complex utility and stormwater works.

Funding (pp4-5): In August 2023 the Board received delegations to make scope decisions and reallocate funding between NZUP projects, but not to stop a project. NZUP funding for NZTA projects is $6.54 billion, including $116 million set aside as programme contingency, initially intended for the Queenstown and Canterbury Packages. The extra funding above $130 million would come principally from that contingency. Drury urban arterials, Rolleston and Brougham are said to remain affordable, with further advice after mid-2024 negotiations. The Board's 11 December 2023 approvals are listed in para 25.

Timing (p5): Detailed design is complete and consents are in place. A decision by mid-February 2024 would allow construction from March 2024 to 2028. Later decisions would delay completion by at least a year and add escalation and ongoing alliance and management costs of $900,000 per month.

Agency comments (p5): The Ministry of Transport supports the reduced scope as consistent with the August 2023 delegation. It notes uncertainty whether $250 million is P50 or P95, that it has not reviewed the Alliance contract, and that NZUP will be fully subscribed with no contingency for further escalation. Treasury did not have time to provide substantive comment.

Recommendations (p6): endorse the Board decision; note $120 million additional funding; note affordability within $6.54 billion from existing contingencies; note timing impacts; note public communication; and note most remaining scope is a regional priority outside NZUP. Ministerial signature blocks are blank in the release. Attachments: NZUP way-forward diagram (p7), location map with element prioritisation 1-7 (p8), and the updated SH6/SH6A intersection and bus hub layout (p9).

Mass rapid transit: The briefing says nothing about mass rapid transit. The deferred elements include the SH6A corridor improvements between Frankton and Queenstown (Attachment 2, priorities 4-5).