Light rail venture under review
A bid by the NZ Super Fund to part-fund and build light rail in Auckland will be studied by the Government.
The NZ Transport Agency said the Super Fund, and Canadian partner CDPQ Infra, had presented an alternative to the business case the Government had been working on for 10 months.
In an email to stakeholders, its chief executive Mark Ratcliffe said ‘‘further market engagement’’ had been deferred temporarily. The Government’s business case for a state-owned light rail was due before Christmas but is now expected early this year.
The Super Fund’s April 2018 proposal was confirmed 10 months ago by the Government, and an eight-paragraph statement from Ratcliffe yesterday does not explain why a closer examination is being ordered now.
The Government had been running a procurement process open to everyone, and Ratcliffe noted ‘‘this parallel process creates uncertainty for partners and stakeholders’’.
‘‘The Government has asked the Minister of Transport and Treasury to assess the potential for alternative funding, delivery and operating models, for the city centre to Mangere project,’’ he wrote to stakeholders. That advice is expected back before the Government next month.
The light rail network is estimated to cost $6 billion but only a portion of that has been committed to by the Government so far.
The 10-year joint councilGovernment plan, ATAP, sets aside $1.8b in seed funding for the network and leaves open the possibility of private funding.
The Government had promised two light rail lines, one from the central city through Mt Roskill to Mangere and the airport, and the other to Westgate, and possibly Kumeu, in the northwest. No mention is made of the northwest line in the latest email, and Stuff understands the Super Fund/Canadian partnership had been unconvinced about its viability.
Public transport advocates greaterauckland.org.nz said it wasn’t clear whether the announcement represented a delay in the project.
‘‘It’s better than nothing at all, even if it takes more time to investigate,’’ said editor Matt Lowrie.
Mayor Phil Goff, campaigned in favour of rail, supported the move. who light
‘‘Aucklanders are keen to get on with the construction of light rail to ease the congestion on Auckland’s roads and to ensure that growth in transport infrastructure meets Auckland’s transport needs,’’ he said.
‘‘However, before investing hundreds of millions of dollars it is important the Government is confident it has chosen the best and the most economic options available for meeting Auckland’s rapid transit needs.’’
Minister of Transport Phil Twyford would not answer written questions from Stuff about when the Government had asked for an assessment of alternative ways of funding the project.
‘‘We’re taking the time to consider the best way of delivering the project to get Auckland moving,’’ he said.
‘‘The business case is nearing completion – light rail to the northwest is part of the Auckland light rail project and subject to the procurement process.’’