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'Shovel Ready' Infrastructure Projects: Project Information Form

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'Shovel Ready' Infrastructure Projects: Project Information Form ‘Shovel ready’ Infrastructure Projects: Project Information Form About this Project Information Form The Government is seeking to identify ‘shovel ready’ infrastructure projects from the Public and certain Private Infrastructure sector participants that have been impacted by COVID 19. Ministers have advised that they wish to understand the availability, benefits, geographical spread and scale of ‘shovel ready’ projects in New Zealand. These projects will be considered in the context of any potential Government response to support the construction industry, and to provide certainty on a pipeline of projects to be commenced or re- commenced, once the COVID 19 Response Level is suitable for construction to proceed. The Infrastructure Industry Reference Group, chaired by Mark Binns, is leading this work at the request of Ministers, and is supported by Crown Infrastructure Partners Limited (CIP). CIP is now seeking information using this Project Information Form from relevant industry participants for 1 projects/programmes that may be suitable for potential Government support. The types of projects we have been asked to consider is outlined in Mark Binns’ letter dated 25 March 2020. CIP has prepared Project Information Guidelines which outline the approach CIP will take in reviewing and categorising the project information it receives (Guidelines). Please submit one form for each project that you consider meets the criteria set out in the Guidelines. If you have previously provided this information in another format and/or as part of a previous process feel free to submit it in that format and provide cross-references in this form. Please provide this information by 5 pm on Tuesday 14 April 2020. As an initial task the Infrastructure Industry Reference Group has been asked to prepare a report on infrastructure projects/programmes that are ready for construction and could, if the Government deemed it appropriate, be deployed as part of a stimulatory package. It should be noted that the full impact of COVID 19 on the economy will not be known for some time, and the Government’s decision to accelerate any construction-related spend will be determined by its assessment of priorities at the time. This information is being sought in good faith, but no undertaking can be made that the criteria or any other considerations will not change or that any projects coming forward from the Reference Group will be accelerated, or any of the Reference Group’s recommendations adopted. This situation we all find ourselves in is truly dynamic. This document relates to the gathering of project information only and is not a Notice of Procurement. It does not form part of any procurement process. It does not commit the Government or CIP to take any further steps, or provide any financial or other assistance, in connection with any information in response to this document or the projects to which that information relates. 1 We refer to “projects” throughout. This this term includes programmes of work in all cases. CIP Project Information Form Page 1 of 15 Section 1: Key Information [Criteria 2 and 3] 1. Project Title: Waikato Region Stock Truck Effluent Disposal Facilities Construction Programme 2. Please provide your details: Organisation Name: Waikato Regional Council Entity Type: Local Government Contact Name and Kelly Stokes, Manager – Business and Technical Services, Integrated Catchment Role: Management, Waikato Regional Council Email Address: [email protected] Telephone: +64 07 859 0787, +64 021 527 989 3. Please provide a very brief description of the infrastructure project: Brief Description “The construction of Stock Truck Effluent disposal facilities, in key regional locations across the Waikato Region”. Problem Being Addressed Consultation and investigations have revealed that the few and current STE facilities are facing increased pressure by truck operators and there is a need for more disposal sites across the Waikato. The consequence of this problem is also evident in effluent spillage complaints from the public and local authorities to the Waikato Regional Council (WRC). This problem will be further exacerbated as the dairy industry has increased to around 1.7 million head of cattle with further increases as former forestry land becomes available and Government policy aims to increase primary industry exports. Key Benefits Being Delivered The Regional Stock Truck Effluent Strategy for the Waikato identifies a proposed network of accessible disposal facilities to reduce the environmental effects, health risks and improve road safety. The strategy also identified a number of education strategies with farmers, truck drivers and regional stakeholders. This is to address the problem of inappropriate discharge of stock truck effluent, either by accidental spillage or deliberate dumping. Construction Readiness and Deliverable Timeframes (The Conveyor Belt) Immediate: One facility has been constructed and is now operational (joint project with NZTA and WRC) but requires some design modifications. Ready 0-6months: One facility is “on hold” pending NZTA weigh bridge programme confirmation (but has an agreed design and funding allocated with NZTA) From 6months onwards: Another two sites prioritised from the list of 10 potential locations identified as part of the strategy are at initiation stage. The entire programme indicated in the Strategy covers 10 sites, ideally over a 10-15 year period, but this is based on joint funding availability from NZTA and approved LTP allocation by WRC. How Funding Will Aid Progress At present, there is no permanent funding mechanism in place, and receiving this guarantee of funding will enable these important road and environmental safety facilities to proceed, providing jobs and security to the regions. If funding is not granted, the programme of delivery will be likely to extend over 25 years, with only one site likely to be built in each LTP cycle. Extra Information In 1997, a national working group led by the NZ Transport Agency was established to develop a strategy for a nationwide network of effluent disposal facilities following a fatal accident of a motorcyclist. Following this, in 1998 the Waikato Regional Stock Truck Effluent Working Group was established. In 2010, the regional working group published the Regional Stock Truck Effluent Strategy for the Waikato Region which clearly identifies the problem of inappropriate discharge of stock truck effluent, either by accidental spillage or deliberate dumping. https://www.waikatoregion.govt.nz/council/policy-and-plans/transport-policy/stock-truck-effluent-strategy/ CIP Project Information Form Page 2 of 15 4. This project will be located in which Territorial Authority: This project is Waikato Region wide. The district councils include: Otorohanga District Council, Waitomo District Council, South Waikato District 5. Please confirm the project sector, category and type of Council, Matamata-Piako District Council, Taupo infrastructure: District Council, Waikato District Council. Project Sector ✓ Project Categories ✓ Accommodation ☐ Three waters ☐ Agriculture, Horticulture and Forestry ✓ Transport ✓ Alcohol Availability ☐ Buildings and Structures ☐ Bioscience and Biotechnology ☐ Other infrastructure ✓ Construction ✓ Energy ☐ Project Type ✓ Film and Television ☐ Critical infrastructure ✓ Imports and Exports ☐ New infrastructure ✓ Information communications and technology ☐ Replacement/refurbished infrastructure ☐ Manufacturing and Production ☐ Repurposed infrastructure ☐ Retail Trade ☐ Tourism ☐ Wholesale Trade ☐ Central Government ☐ Local Government ✓ Other ☐ 6. What is the total cost of the project (NZ$M): $26,230,305M 7. Provide a high-level breakdown of this spend (e.g. construction costs, professional fees, land, other etc.): The 2017 Costs Estimates have been undertaken at the 10 sites identified for stock truck effluent disposal facilities. One of the sites, at Piarere, has been estimated as an optional site and included in the cost estimate summary. The current NZTA Proforma for Scheme Estimate (SE) cost estimation was used on a site by site basis, with Base Estimate, Expected Estimate, and 95th Percentile Estimate calculated based on the scheme drawings prepared for each site. The 95th Percentile Estimate is included in this table as the 2017 Estimate. Allowance has been made for professional fees and client managed costs during D&PD (Pre-Implementation), and professional fees and client managed costs during MSQA (Implementation). Physical works have been estimated separately for each site. The 2017 estimated cost of all 10 sites as a programme of works was estimated at $17.5M, including construction, professional services and client managed costs, property costs, contingencies, and an allowance for funding risk and contingency. A review of the actual costs for Site 1 SH29/SH24 Kaimai has indicated that 50% additional cost was seen between the 2017 estimate and the 2019 construction. Contingency of 50% has been applied upon the 2017 estimate to obtain the 2020 expected cost. The higher costs for sites 9N and 9S are due to the poor ground conditions and the long acceleration and deceleration lanes on the high-speed highway. Site Roading Facilities Name 2020 Expected 2017 estimate 2020 Expected 2017 estimate Site 1 – SH29 / SH24 Kaimai $960,428 $640,285 $296,319 $197,546 Site 2 –Ohinewai $2,168,306 $1,445,537 $243,324 $162,216 Site 3 – SH1 / SH5 Roundabout, Taupo $2,079,129 $1,386,086 $238,007 $158,671 Site 4 – Whatawhata $2,096,531 $1,397,687
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