Endorsement of packages

Introduction

This section sets out the additional guidance to be considered for the endorsement of packages - for the 2012-15 NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied only.

For the latest information, please see the Assessment Framework for the 2015-18 NLTP.

The NZTA will only consider endorsing packages that are sufficiently developed to allow a detailed assessment of their effectiveness.

The Application Information Guide for Endorsement of Packages outlines the information applicants may wish to consider when seeking a commitment to invest from the National Land Transport Fund. The information assists the NZTA in forming a view of the degree of integration, priority, alignment and readiness, in order to invest with confidence.

Assessment update required

An update or new assessment of the package profile is required when:

any of the following have changed significantly:

• the problem, issue or opportunity addressed by the package (and underlying strategy/strategies);
• the package macroscope The information required for the "notice of requirement" under the Resource Management Act 1991, reflecting the scope of the preferred option selected for an improvement project. ;
• the costs; and/or
• the impacts in terms of effectiveness under the NZTA’s Assessment Framework and/or the proposed economic benefits.

An update or new assessment is also required when the NZTA considers the package assessment is outdated.

Optimisation of packages

Optimisation of packages is a critical element to be considered in the assessment, and concerns:

• the selection of the package macroscope The information required for the "notice of requirement" under the Resource Management Act 1991, reflecting the scope of the preferred option selected for an improvement project. ;
• the identification and selection of preferred options of the component projects;
• the sequencing and timing of the component projects;
• the coordination of the delivery of component projects and supporting services across modes, networks and organisations to maximise package synergies.

Optimisation involves understanding the impact on outcomes of the above elements from a consideration of:

• operational effectiveness and constraints,
• integration and synergistic effectiveness, and
• economic efficiency.

Commonly, trade-offs amongst these considerations will be required to optimise the package.

The contribution of an individual activity to the effectiveness and economic efficiency of the package must be assessed if the activity:

• is a large project An improvement project with a cost of more than $5 million.
• is likely to have a benefit cost ratio (BCR The NZTA uses the BCR as a measure of economic efficiency from a national perspective as defined in the NZTA's Economic Evaluation Manual. The ratio compares the benefits accruing to land transport users and the wider community from implementing a project or providing a service, with that project or service's whole of life costs. ) around or below 2.0
• has a weak link to the rest of the package, e.g. when an activity is added to a package because it is in the same area and it is sensible to implement it at the same time but the activity is not related or complementary to the other activities in the package.

In optimising combinations of activities, incremental BCR The NZTA uses the BCR as a measure of economic efficiency from a national perspective as defined in the NZTA's Economic Evaluation Manual. The ratio compares the benefits accruing to land transport users and the wider community from implementing a project or providing a service, with that project or service's whole of life costs. analysis must be used to determine whether component activities make a sufficient contribution to justify their inclusion in the package and whether the timing of the components is optimised.