Penlink project build-own-operate offer given thumbs down

An offer by a Chinese company to build, own and operate the Penlink Road and bridge has been turned down.

The offer included a proposal to procure the project on a non-competitive basis.

It was considered by Auckland Transport (AT), the NZ Transport Agency (NZTA), Auckland Council and the NZ Treasury, which had to decide whether the offer met the minimum criteria to progress further on a non-competitive basis.

In a statement, AT and the NZTA say they must undertake competitive, open-tender procurement procedures with very limited exceptions. “We also need to comply with common law principles of fairness and transparency in procurement,” the statement says.
On this basis, the offer was turned down.

“AT recognises the strategic importance of the Penlink project and the strong public appetite for it to be built as soon as possible, but will need to balance this alongside Auckland Transport’s other competing priorities,” the statement said.

Cr John Watson says that despite this announcement Council is still waiting for a decision from the AT board as to whether or not the 2024 start date for Penlink can be brought forward.

Consultants were engaged at the end of last year to examine the options because of Auckland Council’s tight budgetary position over the next three years.


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