From:
Official Correspondence
To:
[email address]
Bcc:
Arina Lala
Subject:
NZT-9579 RESPONSE #2
Date:
Tuesday, 6 August 2024 4:52:00 PM
Attachments:
image001.png
NZT-9579-2 Response.pdf
Kia ora Diane
Please find attached a response from Howard Cattermole - Chief Financial Officer, to your
correspondence of 9 July 2024
Ngā mihi
Ministerial Services
Te Waka Kōtuia | Engagement & Partnerships
NZ Transport Agency Waka Kotahi
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From: Councillor Diane Calvert <[email address]>
Sent: Tuesday, July 9, 2024 1:01 PM
To: [email address]; Nicole Rosie <[email address]>
Cc: Councillor Nicola Young <[email address]>; Councillor Tony Randle
<[email address]>; Councillor Ray Chung <[email address]>
Subject: Thorndon Quay, Wellington - transport project
Kia ora Simon and Nicole
Please attached a letter from four Wellington City Councillors articulating their concerns and that
of many constituents (residents and businesses) that they represent in respect of the work being
currently undertaken on Thorndon Quay (funded 51% by NZTA).
Regards
Diane
Councillor Diane Calvertunder the Official Information Act 1982
Wellington City Council | Wharangi/Onslow-Western Ward
P s 9(2)(a) | E
[email address] | W Wellington.govt.nz | F dianecalvertnz | T dianecalvertnz | W
dianecalvert.nz
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44 Bowen Street
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Wellington 6141
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www.nzta.govt.nz
6 August 2024
Council or Diane Calvert
Council or Ray Chung
Wharangi/Onslow-Western Ward
Wharangi/Onslow-Western Ward
Wel ington City Council
Wel ington City Council
Council or Tony Randle
Council or Nicola Young
Takapū/Northern Ward
Pukehīnau/Lambton Ward
Wel ington City Council
Wel ington City Council
c/o [email address]
Ref. NZT-9579
Dear Council ors Calvert, Chung, Randle and Young
Thank you for your letter of 9 July 2024 to Simon Bridges, Board Chair, and Nicole Rosie, Chief
Executive, concerning the delivery of Wel ington City Council’s (the Council) Thorndon Quay project.
Your letter has been referred to me for response.
I wil respond to each point listed in your letter in turn below.
Address the significant public concerns raised about the design in terms of the raised
crossings (including proposed numbers) and the lack of investment in renewing the
ageing water infrastructure.
In making decisions to invest in land transport projects, the NZ Transport Agency Waka Kotahi (NZTA)
Board considers public feedback. NZTA was satisfied that the LGWM programme had carried out a
robust consultation process on the Thorndon Quay Hutt Road (TQHR) project. This included alignment
with the Let’s Get Wel ington Moving (LGWM) objectives and the Government Policy Statement on
land transport (GPS) 2021. NZTA was represented on the LGWM Governance Group, which oversaw
under the Official Information Act 1982
how the different feedback (both in support and opposed to different elements of the project) was
considered.
Regarding the lack of investment in renewing the aging water infrastructure, it is not NZTA’s role to
ensure that the Council has sufficient funding and planning underway for underground infrastructure.
Funding from the National Land Transport Fund (NLTF) must only be used for land transport
purposes. As such, the NLTF cannot be used to fund the renewal of water infrastructure.
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Ensure the ongoing suitability of the project design.
The NLTF funding decision was based on information available at the time. It is the responsibility of
the Council through its Project Manager and governance arrangements to ensure the ongoing
suitability of the project design through detailed design and construction processes.
NLTF funding is linked to the GPS, and NZTA continues to ensure that investment is aligned to the
current transport priorities. If the Council wishes to change the design and/or scope of the TQHR
project from what was approved, the Council is required to apply for NZTA’s approval of the
change(s).
Ensure that construction adheres to agreed-upon specifications.
NZTA is not the contract signatory for the project. It is up to the Council officials to ensure the
specifications are met through the construction process.
Implement robust quality assurance measures to guarantee the efficacy of NZTA's
contribution and the realisation of anticipated benefits.
NZTA works to ensure investment is in line with the Government Policy Statement on land transport
(GPS). Projects must achieve the following four main areas:
• agreed scope of works,
• agreed funding to complete the works,
• generate benefits and outcomes aligned to the GPS, and
• ensure the project provides value for money.
NZTA also applies a range of levers prior to and after making an investment decision. Levers after
investment decision include:
Lever
Description
Non-compliance with a
Inform the AO that a condition is not met and therefore claims wil
condition
not be paid out of the NLTF.
NZTA may decline to approve a change in scope or increase in
Changes in scope or cost
costs of a past investment.
NZTA may withhold payment, or part payment, against a claim as
Withholding payment
enabled under section 36 of Land Transport Management Act
2003[1].
NZTA may request reimbursement of funds where an NZTA audit
under the Official Information Act 1982
identifies claims where funding has been applied outside of
Reimbursement
investment guidelines, e.g. fraud or expenditure outside of NZTA
funding applications.
NZTA may notify an AO of NZTA requirements that need to be met
if the AO is seeking subsequent funding. This may arise out of an
audit or from issues encountered through monitoring of the AO.
Meeting NZTA requirements
NZTA may request the AO make an improvement in reporting,
procurement practices, governance, cost estimations, etc. This
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[1] https://www.legislation.govt.nz/act/public/2003/0118/latest/DLM227527.html
Lever
Description
would not affect a past investment decision but would affect future
investment decisions.
If an AO encounter delays with a project, the AO is required to re-
forecast its cashflows. Where this results in a reduced NLTF
Forecasting
commitment in the NLTP period, that reduction can be real ocated
to other activities within the activity class (or in limited
circumstances, may be reallocated to another activity class).
In the case of the TQHR project, I can confirm that an Investment Quality Assurance (IQA) and
independent peer review were completed in 2022. The IQA ensured the business case submitted to
NZTA was fit for purpose. NZTA’s own assessment at the time was that the project aligned with the
GPS 2021 priorities, delivered the right outcomes and value for money. The decision in July 2023
reconfirmed this earlier decision and approved a cost increase with no scope change.
NZTA has been requested by the Minister of Transport to review al projects to ensure alignment to the
GPS 2024. NZTA wil work closely with the Council to understand the impacts of changes to the TQHR
project and identify potential options for resolution, where necessary.
If you would like to discuss this matter further with NZTA, you are welcome to contact the Ministerial
Services team by email at [NZTA request email].
Yours sincerely
Howard Cattermole
Chief Financial Officer
under the Official Information Act 1982
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