‘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 . 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 term includes programmes of work in all cases.

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Section 1: Key Information [Criteria 2 and 3]

1. Project Title: Strategic Tourist Route Upgrades and Seal Extensions

2. Please provide your details: Organisation Name: Council Entity Type: Local Government Contact Name and Role: Ross Bayer, Roading Team Leader Email Address: [email protected] Telephone: 0274 725 560

3. Please provide a very brief description of the infrastructure project: Brief description of the programme Waikato District Council has identified the upgrade of strategic tourist routes, seal extensions and bridge upgrades as a programme of projects to help support job creation and stimulate economic recovery post Covid-19. The tourist route upgrades relate to the Whaingaroa (Raglan) Harbour and circuit. The seal extensions relate to the existing metal roads in and around the Waikato District boundary, Matamata-Piako district, Raglan, Rangiriri and Te Mata. The upgrading of existing bridging stock across the network and construction of two new bridges in Pokeno will facilitate the efficient movement of freight and passenger vehicles across the network through the replacement of sub- standard structures. There is potential for around 160 job opportunities being created through these identified projects.

Problem being addressed The impact of Covid-19 has severely affected tourism in the Raglan and Aotea areas. Local iwi and the local economy have suffered as a result. This situation needs to be rectified urgently once we get out of the Covid-19 lockdown.

Safety on our roads is a major issue that needs to be addressed in and around the Waikato district boundary as mainly roads remain unsealed. Many of the seal extension work ceased due to the global financial crisis of 2008 and financial constraints has meant that these projects have remained moribund since then. Now is an ideal opportunity to re-activate these projects.

Pokeno has experienced rapid residential and industrial growth over the last 5 years. This growth has resulted in existing bridge stock not being fit-for-purpose and unsafe to accommodate both freight and commuter traffic.

Key benefits being delivered The identified tourist-related projects will help stimulate local tourism and help local Marae benefit again from cultural tourism and accommodation once the lockdown is over. It will also help with the development of walkways and a bike trail to meet the wellbeing needs of the local community and further attract both domestic and international tourists to this area.

The sealing of the metal roads identified in this proposal will enhance the efficiency and safety of the local transport network for local farming and associated agricultural contractors involved in the export- driven meat and dairy industry. A lot of seal-extension work ceased as a result of the global financial crisis of 2008. Kick-starting this programme as part of a post-Covid 19 economic stimulus will therefore yield significant community benefits across territorial authority boundaries.

The upgrade of bridge stock across the Waikato district network and the construction of two new bridges in Pokeno will help facilitate safe and efficient of goods, services and people. The bridge construction work in Pokeno will also help service the town for further residential and industrial development (which is expected to take off again once the Covid-19 restrictions are over).

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Construction readiness & deliverable timeframe (Projects here available to start immediately within 0- 6months) The sealing of existing metal roads on and around the Waikato District boundary, Matamata-Piako District, Raglan, Rangiriri and Te Mata will complete the sealed network in the area and the project can start as soon as Covid-19 restrictions are lifted.

With the appropriate government funding support, the Whaingaroa (Raglan) Harbour and Aotea Harbour circuit upgrade projects can start in October 2020.

The upgrading of existing bridging stock across the network can start in September 2020. The construction of two new bridges in Pokeno can start in February 2021.

A programme plan (including resource allocation, staging and timelines) for the strategic tourist routes, seal extension and bridge upgrade/construction project package is in the process of being developed and will be provided to Crown Infrastructure Partners in due course.

How funding will aid progress Government funding will help facilitate project implementation by enabling Council to rapidly initiate procurement of services. A programme plan for these projects is already under development and Council will be ready to go once funding is obtained. The benefits from Council being able to deliver these projects quickly to aid in post-Covid 19 economic recovery should not be underestimated.

Extra Information Programme 1: The Whangaroa Harbour Circuit opens the tourist circuit from Highway 22 to Te Akau Wharf Rd and could connect with any Te Akau wharf re-development for harbour ferry/cruises. The return drive to Raglan opens up the harbour edge with the Waingaro landing Road extension providing a connection to any wharf re-development for harbour ferry/cruises and Marae for tourist accommodation and cultural experience as well as to potential walkway/cycleways.

Programme 2: The Aotea Harbour Circuit enables tourists to complete the loop from Raglan and State Highway 22 to bridal Veil Falls and on to Aotea and Kawhia Harbours, connecting to State Highway 31.

Programme 3: The sealing of existing metal roads in and around the Waikato District boundary, Matamata-Piako district, Raglan, Rangiriri and Te Mata will complete the sealed network in the area. These works were stopped in response to the global financial crisis of 2008.

Programme 4; The upgrading of existing bridging stock across the network and construction of two new bridges in Pokeno. This will facilitate the efficient movement of freight and passenger vehicles across the network through the replacement of sub-standard structures and upgrading of other sub-standard structures.

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4. This project will be located in which Territorial Authority: Waikato District

5. Please confirm the project sector, category and type of infrastructure:

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) $71,800,000.

7. Provide a high-level breakdown of this spend (e.g. construction costs, professional fees, land, other etc.):

Projects Description Readiness/ Barriers/Constraints Programme 1- Whaingaroa Harbour Circuit Programme Total $25m Whaingaroa Harbour Upgrade 40,000m of metal Readiness. $20,000,000 Circuit –Road road to basic rural sealed In road reserve. Most sections Upgrades standard will not need resource consent. - Mangiti Road, Te Akau Constraints. Wharf Road, Waingaroa Survey and design needed. Landing Road, Hauroto Possibly some land purchase to Bay Road, Warren Road tidy up legal boundaries. There are no designs ready, however,

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some sections are straightforward requiring little design work and could be started almost immediately while others have more detailed design. Timing. October 2020 start. Amenity Upgrade of hiking tracks to Readiness. 5,000,000 Improvements mountain biking and Discussions to confirm walkway standard to link – landowner cooperation Whatawhata and needed. Sections owned by Ngaruawahia to DOC and on road reserve could Whaingaroa Harbour get underway. Constraints. Consultation and negotiation required with DOC, private land owners, and Iwi. Final route to be determined. Timing. Dependant on negotiations with private land owners. If early agreement in principle to route, October 2020.

Programme 2- Aotea Harbour Circuit Programme Total $14m Aotea Harbour Upgrade 9,200m of metal Readiness. 5,600,000 Circuit (Project 1) in road to basic rural sealed First 1.2km is designed. No conjunction with standard consents required. Otorohonga District -Te papatapu Road, Constraints. Council. Kawhia Road (to Remaining 7.2km to be Makomako) surveyed and designed. Consultation with adjacent landowners required. Timing. Start October 2020. Aotea Harbour Upgrade 13.8km of metal Readiness. 8,400,000 Circuit Project 2 Road to basic rural sealed Short section already in design ( District) standard as a traction seal. -Kawhia Road to State Constraints. Highway 31 Otorohonga District Council section (Waikato District would need to coordinate with ODC for design and construction phasing). Timing. Start October 2020. Programme 3- Various Network Upgrades Programme Total $13.8m Urban Seal Te Tuhi Rd (Manu Bay Readiness. $250,000 Extensions Raglan) 0.25km In road reserve. Constraints. Some detailed design required. Some consultation required. Timing. October 2020 start. Austen St Rangiriri 180m Readiness. $200,00

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In road reserve. Constraints. Some seal work done with Motorway construction. Minor design needed. Timing. October 2020 start. Phelps Rd and Talbot Rd Readiness. $240,000 Rangiriri (100m and 100m) In road reserve. Constraints. Minor design and consultation needed. Timing. October 2020 start. Church Lane Te Mata 70m Readiness. $100,000 In road reserve. Constraints. Minor design needed. Timing. October 2020 start. Various Rural 20km seal extensions Readiness. 10,000,000 In road reserve. Most sites will not need resource consent. Constraints. Survey and design needed. Possibly some land purchase to tidy up legal boundaries. There are no designs ready, however some sites are straightforward requiring little design work and could be started almost immediately while others have more detailed design. Timing. October 2020 start. Local sealed roads in Valintine Road 7.4Km Readiness. $2,200,000 conjuction with All within road reserve. Matamata Piako Straight road, with wide District Council metalled formation. Minimal (MPDC) – cross design needed. boundary Constraints. coordination. Coordinate with MPDC (shared maintenance district boundary road). Detailed design required, however is a straight road, with wide metalled formation. Timing. Immediate start. Woodlands Road (MPDC) Readiness. 2.6km All within road reserve. Straight road, with wide metalled formation. Minimal design needed. Constraints. MPDC (starts at district boundary road). Detailed design required. Timing.

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Incorporate into Valintine Rd $780,00 works. Programme 4 - Bridge Network Upgrades Total $19,000,000 Replacement of Munro Rd Single Lane Readiness. $3,500,000 Single Lane bridge in bridge All within road reserve. Scope Pokeno already defined Constraints. Detailed design and Resource Consent required. Timing. February 2021 start. Replacement of Pokeno Rd existing bridge Readiness. $2,500,000 Bridge on Pokeno Rd has safety and alignment All within road reserve. Scope constraints and requires already defined upgrading Constraints. Detailed design and Resource Consent required. Timing. February 2021 start.

Replacement of Tahuna Rd existing bridge Readiness. $5,000,000 Bridge on Tahuna Rd is 80 years old and has All within road reserve. Scope structural limitations already defined Constraints. Detailed design and Resource Consent required. Timing. February 2021 start. Structures Upgrades Investment in structure Readiness. $5,000,000 component replacement All within road reserve. Scope across the district already defined Constraints. Minor design required. Timing. September 2020 start. Structures Investment in deferred Readiness. $3,000,000 Maintenance structures maintenance All within road reserve. Scope across the district already costed and prioritised Constraints. Nil. Timing. September 2020 start.

8. Briefly outline the value the project will deliver in terms of employment contribution. Programme 1:- Whaingaroa Harbour Circuit & Programme 2- Aotea Harbour Circuit (Community outcomes) Tourism, and in particular campervan-based tourism, has intensified over the last decade and as a result, has saturated many of the traditional holiday areas. By expanding the sealed network, specifically linking areas of high tourist interest such as harbours and coastlines, the tourist load can be spread and impacts can be reduced or are more easily mitigated.

This expansion of tourism out into areas previously less accessible (many rental car and van companies do not allow travel on metal roads) provides opportunities for other communities to benefit with increases in development and in employment and business opportunities.

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These two strategic seal extension projects look to expand both access to Whaingaroa Harbour providing opportunities for local communities as well as tourism operators (land and water-based), and to provide a vehicle link from Whaingaroa Harbour to Aotea and communities and beyond via the already popular attractions (Bridal Veil Falls and windfarm mountain bike trails).

Programme 3:- Local rural and urban roads (Community outcomes) The sealing of existing metal roads on and around the boundary between WDC and MPDC will complete the sealed network in this area, following a cessation of these works in response to the global financial crisis. This will enhance the efficiency and safety of the local transport network for local farming and associated agricultural contractors involved in the export-driven meat and dairy industry. This program will also reduce dust in areas where increased density and traffic movements is creating potential health issues related to the dust from the unsealed roads

Programme 4:- Local rural and urban bridge replacements and upgrades (Community outcomes) The construction of three replacement bridges and the upgrading of other structures will facilitate the movement of freight and passenger vehicles across the network. This will lift productivity and economic activity in the short term through the construction phase and also in the longer term through efficiency

These projects will create employment in the construction sector in a range of roles from professionals to semi-skilled labourers. Each project will create jobs for heavy vehicle operators as well labourers, traffic controllers, designers and quarry operators. Designers and suppliers are a key element of the extended supply chain for these projects. These projects will incorporate local aggregates, utilise existing plant, and are a potential source of employment for relatively unskilled people

9. Briefly describe how the project is currently/ intended to be funded:

None of these projects are currently funded as the Waikato Districts programs for this type of work was suspended around 5 years ago due to funding constraints.

10. Has this project previously applied for funding with any part of Government? Yes: ☐ No: ☒ - If Yes, please describe which part of government (i.e. PGF, NZTA FAR etc.), the outcome of the discussions and who such discussions were with (what Ministry and official).

None of these projects have been part of a prior funding request.

Section 2: Construction Readiness [Criteria 1] 11. Please briefly explain the status of the project including confirmation that the project will fall into one of the three categories of readiness (see 12 below). • All upgrades can be undertaken within existing road corridor. • All of this work has a clearly defined scope and desired outcome. • Some projects ready to go now, some ready for construction season start. • Streamlined Procurement Option through existing Alliance Roading Contract. • Work at various levels can commence immediately.

12. Confirm which of the following categories the project best falls into.

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Further commentary (briefly set out barriers to Status ✓ commencement)

A. Projects which currently are (or were) in the construction phase but have been put on hold due to COVID 19 and are likely not to ☐ N/A. progress, or to progress at a much slower rate or scale/scope, if not supported post COVID 19

B. Projects which have a high expectation of commencing the construction phase within These projects can very quickly move to a design and construction phase. Designs for the first tranche could be the next six months (by 31 October 2020), ✓ completed within 1 month of approval and construction but are unlikely to do so as they are currently commence within 3 months not funded

C. Projects which could have been expected to commence the construction phase within ☐ [Insert your relevant commentary here] the next 12 months (by 30 May 2021), but are unlikely to do so due to COVID 19

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13. Confirm the status of key milestones Expected Status ✓ Date Suitable tender complete ☐ 15/09/2020 Tender evaluation in progress ☐ Procurement Request for Tender in the Market ☐ About to put out a Request for Tender to the market ☐ Detailed Design Complete ☐ 31/08/2020 Detailed Design Detailed Design Underway ☐ Detailed Design to commence ✓ Approved ☐ Varies Designations/Consents Lodged ☐ In preparation ✓ Yes ✓ NA Land Acquired Being negotiated under PWA (please indicate stage below) ☐ Has not commenced ☐ Approved ☐ Business Case or Draft ☐ Investment Case Underway ☐ None ✓ NA

14. Briefly outline any other comments on the key project timetable or key milestones

• Some design required for these projects. • There are no barriers other than tendering some of the work. • Procurement could be done under a range of different models from using existing contracts to public tender of the works. • All upgrades can be undertaken within existing road corridor. • Some projects have already been designed and are ready for construction season start. • Streamlined Procurement Option through existing Alliance Roading Contract would allow some of the projects to start October 2020. • These projects would be completed over two construction seasons ending in March 2022. • Would require the appointment of up to 15 individual contracts to be spread across the small to medium sized contractors in the Waikato.

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Section 3: Overall Benefits and Risks [Criteria 4]

Please advise at a high level whether a project brings real value (in an economic, social and/or environmental sense) to New Zealand as a whole or the region in which it is located in line with Treasury’s Living Standards Framework2 and Sustainable Development Goals3. Please take into account, where relevant, the draft 2021 Government Policy Statement on land transport, available at https://www.transport.govt.nz/multi- modal/keystrategiesandplans/gpsonlandtransportfunding/gps-2021/, and the priorities that it establishes.

15. Briefly outline the social, environmental and economic benefits of the project to the local region and New Zealand and overall value for money. These projects deliver two key benefits to the Waikato region • The creation of new jobs using spare industry capacity • The sage movement of tourists and freight across the region

The social benefits related to employment will be immediate. Value for money can be achieved by robust procurement and project management. Waikato district already has the project management skills to deliver this outcome

16. What is the expected contribution to local/ national employment? The estimated level of employment created in immediate construction jobs is estimated at 160 with a number of downstream jobs associated with supply and maintenance of machinery and supply of materials.

17. What are the risks associated with the project? Each risk should be ranked as high, medium or low and include a short explanation as to why it was given that risk rating. Low/ Risk Further commentary on risk Med/ High

A. The risk of the project not commencing These projects are not time constrained in any way. within the advised timescale LOW

B. The risk the project will not be completed These are relatively simple projects which reduces LOW on time, to cost or to specification the risks of time and cost.

C. Risk the project will not realise the benefits outlined above LOW

18. Are there any other key project risks or any other information which would be useful background or context at this stage? Projects risks fall under the following ; • Sufficient project management capacity to deliver on the projects due to industry demand to support economic recovery projects. • Can industry respond and deliver these projects. • An extreme weather event in the next 6 months would mean resources will need to be mobilised to remediate storm damage.

2 https://treasury.govt.nz/information-and-services/nz-economy/higher-living-standards/our-living-standards-framework

3 https://www.mfat.govt.nz/en/peace-rights-and-security/work-with-the-un-and-other-partners/new-zealand-and-the-sustainable-development-goals-sdgs/

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Section 4: Impact of COVID-19

19. Please briefly comment on the likelihood and timing of the project recommencing once the COVID 19 Response Level is suitable for construction to proceed These projects are not on hold but are new projects that require government funding in order to proceed and help stimulate economic recovery in the Waikato district. Other than funding, there are no barriers other than resourcing but this is unlikely to be an issue.

20. What is the best estimate of the impact (financial/social/environmental) COVID 19 has had on the project and on local industry associated with the project? [Please provide the best estimate in $ amount (or ranges) and unemployment numbers, and describe the nature of those impacts] No Impact from Covid 19.

21. Has this project already, or is likely to benefit from already announced Government led financial support for businesses (e.g. wage subsidy scheme/business finance guarantee scheme) Yes: ☐ No: ☒ - If Yes, please describe the scheme and extent of the support you have received/expect to receive.

Not applicable.

22. Briefly outline the top 2-3 things that the Government can do to help progress this project. Please consider both financial and non- financial levers such as lowering regulatory barriers, adjusting Government procurement practices, fast-tracking resource consent processes.

These projects will only proceed with a 100% government subsidy. This is the critical issue and hence this submission. Waikato District Council staff are already developing a programme plan for this project package and government funding will help ensure that implementation can begin.

Please indicate clearly whether you consider any information you have provided in this form to be confidential. Confidential information will not be publically released, other than in anonymised form, except to the extent that any release is required by law.

None of the information provided by Waikato District Council in this form is confidential.

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