Transmission Gully Motorway PPP Project, Post-Construction Review

Background 

In 2020, The New Zealand Government directed the New Zealand Infrastructure Commission, Te Waihanga, to undertake an Interim Review of the Transmission Gully Project. NineSquared’s Steve Richards along with fellow reviewers Lindsay Crosson and Sir Michael Cullen were engaged to undertake the Interim Review. The Interim Review focused on how the TGP agreement was awarded for the price agreed, whether this was a realistic price, and whether the risks identified were appropriate, properly considered and taken into account. The Interim Review was completed in January 2021 and following Cabinet consideration, was proactively released on Te Waihanga’s website on 20 April.

Following the release of the Interim Review, the Minister for Infrastructure directed Te  Waihanga to undertake a further review of the project once construction was completed.

In early 2022, NineSquared was appointed by the New Zealand Infrastructure Commission to undertake a second, independent review of the $1 billion Transmission Gully Motorway Project (currently being delivered as an Availability PPP).  

The Post Construction Review’s focus is on how well the Transmission Gully PPP Project has delivered on its investment objectives as outlined in the approved business case, tender documents and final signed PPP agreement. It will also assess how issues that have impacted delivery performance have been managed to derive lessons that could be applied to future procurement of major infrastructure projects, including future PPP procurement. The scope of this review work includes: 

• looking at key events and risks that have adversely impacted the project, including why it’s been delayed, and how these were managed 
• whether the project has achieved value for money and if better value for money might have been obtained through a different procurement model 
• the management and governance arrangements put in place for the project. 

Our role 

Steve Richards was NineSquared’s expert and lead reviewer for this assignment. Steve was responsible for developing the review methodology, conducting interviews to explore the key issues and nominated focus areas as well as undertaking analysis and report preparation.  

Subject to final road completion, the Post-Construction Review is expected to be completed in late 2022. 

Results and relevance 

Steve’s re-appointment by the New Zealand Infrastructure to lead a second, independent review of the Transmission Gully Highway PPP Project demonstrates NineSquared’s project assurance credentials in the area of major and complex transport/infrastructure projects. 

Download