The Government hopes to make decisions on whether a bridge or tunnel across Auckland’s Waitematā Harbour is the preferred option by around the middle of next year.

It also wants to look at options from overseas to help finance and deliver the project.

In a statement, Minister for Transport Chris Bishop said advancing an additional harbour crossing was identified as a priority over the next year.

“So over the next 12 months, starting in the coming days, we’ll undertake geotechnical, environmental, and utilities investigations to gain a comprehensive understanding of ground and seabed conditions and, in time, to determine whether a bridge or a tunnel would be the more suitable crossing option.”

He said decisions on whether a bridge or tunnel were the preferred option would be made around the middle of next year.

Bishop said it was “critical” to look at “innovative” ways to finance and deliver the project.

“We also need to draw on the experience of companies and countries who’ve built mega-projects like this more recently than we have in New Zealand — because, let’s be honest, because we haven’t done anything at this level of complexity or cost in a long time,” he said.

The next step would begin in May, as New Zealand Transport Agency would commence early market soundings to explore staging opportunities as the two options — bridge or tunnel — are refined for assessment.

“These early market soundings will involve one-on-one engagement sessions with a select group of civil contractors, maintenance providers, investors and debt financiers to seek feedback on design elements and approach to delivery, as well as market appetite and capacity.

“NZTA will also test interest from local and international industry leaders on funding, financing and procurement options to help determine the best procurement and funding model for the project, ensuring it is delivered in a way that maximises value for money and minimises risk.”

Labour responds in support

Labour transport spokesperson Tangi Utikere said in a statement the party supported Bishop’s call for input on the second Waitematā Harbour crossing.

“Auckland needs this project, it has needed it for at least a decade. It’s time to get on with it.

“Labour had options for a second harbour crossing, and we announced a preferred route before the election. The Minister needs to make clear the details around options for this major project as soon as possible.”

Labour Auckland spokesperson Carmel Sepuloni said a decision was “urgently needed for Auckland” and also wanted the Auckland Mayor and council involved in discussions.

Govt exploring toll concessions

Speaking at the investment summit in Auckland, Bishop also said the Government was exploring toll concessions as a tool for delivering new roads faster and more efficiently, with an initial focus on six potential opportunities.

Current toll roads were managed by New Zealand Transport Agency, however he said the Government was for the first time exploring the potential for private involvement across all new roads to be assessed for tolling.

A toll concession was where a private company, called the concessionaire, was granted the right to operate and maintain a toll road for a set period, and collected the revenue from it to offset their costs and provide a return on investment.

In return, it would provide up-front capital payment to the Government which could be reinvested into new infrastructure projects to potentially bring them forward.

“Shortly, we will begin the market sounding stage to test these concession opportunities and gain first-hand insights into the features which would make these a valuable proposition for the private and public sectors.”

“For existing toll roads, a concession can be granted to operate and maintain a road. Toll concessions can also form part of a model to deliver new infrastructure, where a private partner is engaged to design, build, operate and maintain the road and could then collect toll revenue to meet its operations and maintenance costs.”

Bishop said six routes have been identified that may be worth exploring to build the Government’s understanding of the viability of a concessions market here. These were:

  • Northern Gateway Toll Road (currently tolled)
  • Tauranga Eastern Link Toll Road (currently tolled)
  • Takitimu Drive Toll Road (currently tolled)
  • Penlink (to be tolled once open)
  • Takitimu North Link (to be tolled once open)
  • Ōtaki to North of Levin (to be tolled once open).

The Government wanted to hear from “private players who are interested in investing in the New Zealand transport network” and expected to make decisions on toll road concessions this year.

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