Motorway takes step forward

The NZ Transport Agency today announced it will enter into preferred bidder negotiations with the Northern Express Group (see below) for the Puhoi to Warkworth motorway project north of Auckland.

The 18.5km Puhoi to Warkworth motorway will form the first section of the Puhoi to Wellsford motorway project, one of the Government’s Roads of National Significance identified as being key to economic growth.

Transport Minister Simon Bridges says delivering the project using a public private partnership (PPP) model will allow the project to benefit from private sector innovation and funding sources, increasing certainty of delivery and driving better value for money.

“A PPP opens the door for private sector innovations that are not always achievable under traditional public sector procurement methods,” he says. “The size and complexity of the project means it will benefit from innovative outcomes in design and construction that the private sector will bring.

“The Government will continue to consider PPPs for other large-scale and complex transport infrastructure projects which could potentially benefit from the innovation and value-for-money that can be achieved through a PPP approach.”

The first state highway in New Zealand being delivered through a PPP is the Transmission Gully motorway project in Wellington which is expected to open in 2020.

The PPP contract for the Puhoi to Warkworth project is expected to be awarded at the end of this year.

Northern Express Group – Made up of Accident Compensation Corporation, HRL Morrison & Co Public Infrastructure Partners, Acciona Concesiones S.L., Fletcher Building Ltd, Macquarie Group Holdings New Zealand Ltd, Acciona Infrastructure Australia Pty Ltd, The Fletcher Construction Company Ltd, Higgins Contractors Ltd.