Government decides on PPP for motorway

The Puhoi to Warkworth motorway project will be financed, designed, built, managed and maintained through a Public Private Partnership (PPP).

This was announced last week by the NZ Transport Agency’s chief executive Geoff Dangerfield.

However, the NZTA isn’t expected to award the PPP contract until late next year.

“The next steps in the PPP procurement process for the project will see a shortlist of PPP consortia identified by the third quarter of this year,” Mr Dangerfield says.

“This will be followed by the selection of a ‘preferred bidder’ by mid-2016, and the awarding of the PPP contract in the last quarter of 2016.  These timeframes are indicative only and may be subject to change.”

A PPP contract will likely see the PPP consortium operate and maintain the motorway for the 25 years that will follow the anticipated six-year construction period.

“Using a PPP for key infrastructure projects will open the door for private sector innovations that are not always achievable under traditional public sector procurement methods.

“The nature of the contract to be used will provide a strong incentive for the successful PPP consortium to deliver the best possible results for road users.”

Mr Dangerfield said the public would be fully consulted on any tolling proposal which must also obtain Ministerial approval.

Full ownership of the motorway will remain with the public sector.

The PPP was one of three options the NZTA was considering for the motorway. The two options rejected were design and construct or an alliance.

The PPP decision has been welcomed by the Road Transport Forum. Chief executive Ken Shirley says it will get this vital upgrade of Northland’s road links to Auckland and the rest of New Zealand completed years earlier than would have happened if funding was dependent on the National Land Transport Fund.

“The commitment to a PPP will prevent the route from being used as a political plaything in future and give Northlanders the certainty they want that they will get improved road access,” Mr Shirley says.