2021-24 NLTP MODERATION PROCESS
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PURPOSE
Provide an overview of, and outline key milestones for, the moderation and optimisation of the National Land Transport Programme for Approved
Organisations (AOs) and Waka Kotahi.
BACKGROUND
INFORMATION
Waka Kotahi NZ Transport Agency is responsible under the Land Transport Management Act 2003 for setting dates for developing the National Land
Transport Programme (NLTP) every three years. Under the Act, the NLTP can be adopted any time until 31 August 2021.
Investment Advisors at Waka Kotahi col aborate with Approved Organisations (AOs), and Waka Kotahi as applicant, to support them in developing their
continuous programmes, Low Cost Low Risk improvement (LCLR) programme and any other improvement activities, programmes or packages that are
seeking inclusion for the 2021-24 NLTP. It’s important for Investment Advisors and applicants to keep in touch with each other throughout the
development of the NLTP and adopt a no-surprises approach.
THE MODERATION PROCESS
During the NLTP moderation process activities will go through the following stages.
Prioritisation Investment prioritisation is the basis for including an activity or combination of activities in the NLTP. The Waka Kotahi Board sets the investment
threshold based on the funds available for the activity class and the value and priority order of al proposed activities. Depending on the amount of
funding available for an activity class, activities with a priority order above an investment threshold in that activity class are included in the NLTP.
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The priority order for activities is reconsidered when a request for funding approval is made. The review confirms information about costs and benefits
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as wel as the other factors that impact on investment prioritisation.
Continuous programmes are effectively funded first, as funding decisions for continuous programmes are made for the three years of the NLTP at the
time the NLTP is adopted. This provides the sector and Waka Kotahi investment partners with certainty of funding continuity fo
ACT r the NLTP period. Waka
Kotahi expects to provide funding to al continuous programmes, and, on this basis, Waka Kotahi expects to assign priority orders to continuous
programmes.
Assessment The assessment of investment proposals and the resulting priority order wil assist Waka Kotahi in determining the merits of investing to different levels
in the various programmes and activities submitted.
Moderation
INFORMATION
Moderation is an internal Waka Kotahi business process that ensures a consistent approach is used to assess al funding requests. Typical y, moderation
takes place in stages, focusing initial y on the strategic drivers and qualitative assessment of high-level business case material. This ensures the most
appropriate activities are progressed to subsequent stages with confidence. Moderation also includes agreeing conditions of funding, for example
resolving outstanding issues from previous audits, which wil be recommended to the board when they consider each approval.
Optimisation
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In developing the NLTP, Waka Kotahi is required to optimise (that is, make the best or most effective use of) investment allocations across all activity
classes to give effect to the GPS priorities and outcomes sought. While indicative al ocations for continuous programmes are made ahead of the final
NLTP, they are only confirmed as approved when the NLTP is published.
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PROGRAMMES AND ACTIVITIES
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Continuous programmes A continuous programme is a group of activities, relating to existing assets and services, delivered on an ongoing basis from one NLTP to the next to
maintain an adequate customer level of service. Activities include road maintenance, public transport and road safety partnership.
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Continuous programmes may not always require stand-alone business cases. The key factor in assessing the supporting information for a continuous
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programme is checking that Business Case Approach (BCA) principles have been appropriately applied. Supporting information could include an activity
management plan (AMP) or public transport equivalent. The programme should also be balanced against the plans and programmes of other AOs
working within the same networks and systems, for example, passenger transport services (usual y delivered by a regional council) alongside road
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network management (delivered by an AO or Waka Kotahi for state highways).
Low cost low risk programme LCLR is a programme of improvement activities that has a three-year funding al ocation across the NLTP period. Waka Kotahi expects AMPs, or the
equivalent for public transport activities, to provide the overal business case for an applicant’s LCLR programmes. This includes setting out its approach
to addressing gaps in the existing customer level of service and optimising the programme. LCLR activities may also arise from other programme
business cases, such as the Safe Network Programme.
A LCLR activity for the 2021-24 National Land Transport Programme has been defined as:
INFORMATION
‘Any activity within an identified activity class that has a total implementation cost within the $2 million Low Cost Low Risk threshold’
Improvement activities Improvements are activities that increase levels of service to address an identified or significant gap in customer levels of service (CLoS) or improve the
efficiency of the land transport system in delivering existing CLoS. Improvement activities can be either an individual improvement project, or a package
or programme of improvement activities.
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For more information on what is a programme or package of activities read this
Programmes and Packages Technical Paper.
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FUNDING ALLOCATION BIDS AND DEADLINES
Prioritisation of programmes and activities is subject to the Waka Kotahi Board making a final decision when it adopts the NLTP. Activities are assessed
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for inclusion in the NLTP through a series of bid stages. Initial, firm and final bid stages have fixed deadlines to ensure that applicants get a reasonable
amount of certainty, or signals, about:
• the quality of their supporting information
• how Waka Kotahi wil subsequently determine the funding al ocation in the NLTP.
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This staged assessment and prioritisation process enables applicants to plan with greater certainty, respond to assessment feedback and adjust their
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evidence and/or planned programmes before the NLTP is adopted by the Waka Kotahi Board. While it is uncommon to have any material changes
between the initial and final al ocations, there is room for review and adjustment between these deadlines. Al bids should provide evidence-based
proposals that demonstrate the BCA principles.
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What
Timeline
Description
Self Assessment - initial
21 Sept 2020
Applicants should complete a self assessment of their continuous programme bids against the
bids
appropriate investment quality assurance questions.
Initial bids – Continuous
21 Sept 2020
Critical in providing Waka Kotahi and regional transport committees (RTCs) a first look at funding
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proposals. Initial bids are expected to be a robust, realistic signal of the investment proposal.
Initial submissions – new
21 September By the end of October 2020, we will require applicants submit their improvement activities which
improvement activities
until the 30
includes their Low Cost Low Risk programme and new activities being included the NLTP.
October
For each new improvement activity an Investment Prioritisation Method (IPM) profile should be
INFORMATION
provided.
For Low Cost Low Risk activities, the IPM profile is set at a programme level. During this step,
applicants will confirm their improvement activity submissions.
For continuous programmes an IPM profile is not required to be provided as a default profile is used
for these programmes.
Note: It is more advantageous to submit your activities and programmes early to facilitate
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discussions with your investment advisors, however, the hard date for submission of these activities
and programmes is 30 October.
Feedback preliminary
9 Nov 2020
Feedback from assessors to applicants on the outcome of the preliminary prioritisation and
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prioritisation and
moderation workshop in relation to their initial continuous programme bids.
moderation
- Continuous Programmes
Self Assessment – final
Mid Dec 2020 Approved Organisations and Waka Kotahi should complete a self assessment of their continuous
bids
programme bids against the appropriate investment quality assurance questions.
Final bids – Continuous
11 Dec 2020
Determine
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Programmes
initial bids.
For continuous programmes, funding is effective immediately at the start of the NLTP period, so al
information required for Waka Kotahi assessment needs to be provided with final bids. There should
be no outstanding issues. Final bids should have:
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- More detail than the initial bid and be supported by more robustly developed evidence.
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- Local governance support for inclusion in the NLTP.
- Applied the BCA in developing information and supporting evidence.
- Self-evaluated that evidence using assessment of the business case models.
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Feedback preliminary
March 2021
Feedback from assessors to applicants on the outcome of the preliminary prioritisation and
prioritisation and
moderation workshop in relation to improvement activity submission.
moderation
- improvement activities
Feedback final
March 2021
Feedback from assessors to applicants on the outcome of the final prioritisation and moderation
prioritisation and
workshop in relation to their final submissions.
moderation
- Continuous programme
Indicative al ocations for
22 April 2021
Waka Kotahi Board agrees the indicative al ocations for the continuous and Low Cost Low Risk
INFORMATION
continuous programmes
programmes.
Final submissions –
21 May 2021
Low Cost Low Risk improvement activities
improvements activities
Funding is allocated to an AO or Waka Kotahi at the start of the NLTP period. AOs or Waka Kotahi
wil need to have completed their three-year detailed Low Cost Low Risk programme in order to
draw down their al ocated funding.
Improvement Activities
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Funding is only prioritised against new activities at the start of the NLTP period. AOs or Waka Kotahi
should discuss next steps with their investment advisor.
Note: Some business cases may have progressed sufficiently to be recommended for funding
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approval when the Board adopts the NLTP. Where possible Waka Kotahi should align funding
approval with NLTP adoption to provide greater certainty that the NLTP represents the three-year
investment programme of Waka Kotahi.
Feedback final
June 2021
Feedback from assessors to applicants on the outcome of the final prioritisation and moderation
prioritisation and
workshop in relation to their final bids.
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moderation
- improvement activities
Interim funding
24 June 2021
Put in place interim funding arrangement from 1 July until 31 August 2021 for:
arrangement from 1 July
• Continuous programmes
until 31 August 2021
• New activities (incl. low cost low risk)
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• Committed activities.
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Regional Land Transport
End of June
Receive the final RLTPs from Regional Councils which have been endorsed by Regional Transport
Plans (RLTP)
2021
Committees.
Approved NLTP
31 Aug 2021
Waka Kotahi Board approves the National Land Transport Plan.
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Notify of date to publish
September
To appoint dates for when an approved regional land transport plans must be sent to Waka Kotahi
final RLTPs
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(and other authorities) and be made publicly available.
Finalise the NLTP
September
Finalising messaging and facilitating the launch of the NLTP and communications. Allocation of
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funding within TIO against each AO and Waka Kotahi. Update status of new improvement activities.
MODERATION AND OPTIMISATION
In developing the NLTP, Waka Kotahi is required to optimise (that is, make the best or most effective use of) investment allocations across all activity
classes to give effect to the GPS priorities and outcomes sought.
INFORMATION
Moderation is an internal Waka Kotahi business process that ensures a consistent approach is used to assess al funding requests. Typically, moderation
takes place in stages, focusing initial y on the strategic drivers and qualitative assessment of high-level business case material. This ensures the most
appropriate activities are progressed to subsequent stages with confidence.
External observers from groups such as the Transport Special Interest Group, which is drawn from regional councils, are permitted to attend each of the
workshops.
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Moderation Timeline
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Stage
Timeline
Description
Setting the
6 October Setting the scene is about obtaining a view of the upcoming NLTP from a strategic lens and provides an initial view of
scene
the pressures within the system.
The workshop analyses AO and Waka Kotahi bids and submissions to provide a view across the activity classes on the
committed and available funding.
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Continuous
9
Preliminary prioritisation and moderation is to chal enge the continuous programme bids including a focus on the
programmes November quality of the supporting information. An initial moderation of the continuous programmes is undertaken.
- preliminary 2020
prioritisation
and
moderation
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Resetting the 16
Resetting the scene is about updating our view of the NLTP from a strategic lens.
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scene
November The workshop analyses AO and Waka Kotahi bids and submissions to provide a view across the activity classes on the
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committed and available funding.
Improvement 16
Preliminary prioritisation and moderation involves chal enging Low Cost Low Risk programmes and new improvement
activities -
February
activities. An initial moderation of these activities is undertaken.
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preliminary
2021
prioritisation
and
moderation
Continuous
25
Final prioritisation and moderation is a further chal enge of continuous programme bids, while looking to resolve
programmes February
outstanding issues and confirm the programme.
- final
2021
During the session there is also a focus on the results from a review of finalised programmes and includes comparisons
prioritisation
(benchmarking) between similar proposed programmes and their pairs.
and
INFORMATION
moderation
Resetting the 4 March
Resetting the scene is about updating our view of the NLTP from a strategic lens.
scene
2021
The workshop analyses AO and Waka Kotahi bids and submissions to provide a view across the activity classes on the
committed and available funding.
Improvement 10 June
Final prioritisation and moderation is a further chal enge Low Cost Low Risk programmes and new improvement
activities -
2021
activities, while looking to resolve outstanding issues and confirm programmes and submissions.
final
The session includes a final moderation of activities or programmes which involves ensuring critical parts of
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prioritisation
dependent projects are above the cut-off and confirming prioritisation ratings for activities.
and
Suggested al ocations across activity classes and scenario planning is also undertaken.
moderation
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Resetting the 17 June
Resetting the scene is about updating our view of the NLTP from a strategic lens.
scene
2021
The workshop analyses AO and Waka Kotahi bids and submissions to provide a view across the activity classes on the
committed and available funding.
After each moderation session (workshop) feedback is prov
UNDER ided within Waka Kotahi and to AOs ensuring they can firm up their investment bids. For
example, the focus of the Investment Advisor when progressing from initial to final bids for a road maintenance programme is to improve the quality of
the AMP as a business case.
Moderation and optimisation (for each activity class and the NLTP as a whole) involves several related tasks:
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• An investment assessment working group reviews and agrees the assessment profiles and prioritises activities nationally, considering the priority
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ranking provided by the Waka Kotahi Investment Advisors, as wel as accounting for regional and Crown funding.
• In prioritising activities, the working group will identify any emerging trends to ensure a balanced, optimal mix of activities. They consider local,
regional and national outcomes, as wel as programmes across activity classes and any resulting impacts; for example, how public transport
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interventions affect transport network performance and planned roading requirements.
• The working group develops recommendations for inclusion and/or funding al ocations for the Waka Kotahi Board’s final approval.
Moderation also includes agreeing conditions of funding, for example resolving outstanding issues from previous audits, which wil be recommended to
the board when they consider each approval.
WAKA KOTAHI DECISIONS
INFORMATION
Waka Kotahi needs to weigh up and prioritise competing programmes of activities because the funding pool is limited. All the work leading up to and at
moderation informs these decisions. Waka Kotahi provides advice on the NLTP allocation in three stages:
• Indicative allocations: AOs and Waka Kotahi as applicant are advised an indicative continuous programme al ocation prior to the adoption of the
NLTP to help them finalise their long-term plans. Waka Kotahi will endeavour to provide this advice by the end of April 2021.
• Approved al ocation: AOs and Waka Kotahi as applicant receive confirmation and advice of the approved al ocation when the NLTP is published.
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• Communicate activities that were not included in the NLTP or those activities that were included but at a different priority order.
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Document Outline
