GRAFTON GULLY PROJECT

Auckland, New Zealand

This project forms Stage 1 of the Central Motorway Improvement Project, which is an integral part of Transit New Zealand's overall strategy for easing traffic congestion in central Auckland. The project comprises new links that provide direct access between the Northern Motorway, Grafton Gully, and the Port of Auckland. It also improves access to the lower CBD, Auckland Hospital, and Mission Bay. Exhibit 4.22 illustrates the extent of the Grafton Gully project and its location relative to the Port of Auckland.

Exhibit 4.22 Grafton Gully Central Motorway

Source: Maunsell of Australia, 2005

The NZ$68m project is the first of the three Central Motorway Improvement projects to be completed took and was completed well ahead of schedule and under budget in February 2004. The project was delivered by the Freeflow Alliance, which is a Project Alliance consisting of the project owner Transit New Zealand, Beca Carter Hollings & Ferner, Fletcher Construction and Higgins Contractors.

A Project Alliance is a new form of contracting between an owner, the designers and constructors. Members take collective ownership of the project risks and rewards with incentives provided to encourage outstanding performance. There are also penalties if performance is below standard. Success is not measured by cost performance alone. Additional key performance areas include risk management, traffic management, environmental management, safety management, community relations, early start and timeliness of completion.

Issues/Results: The Auckland isthmus limits the number of land access routes into and out of the Auckland Central Business District. Capacity improvements are seen as desirable but funding out of consolidated revenue and from fuel taxes are projected to fall short of the capital required for these improvements. Further study of PPP opportunities by the NZ Government is expected.