Buried within a rather triumphant “OMG we’re spending masses of money on this roading project” media release from NZTA on the Waterview Connection are a few rather interesting nuggets. For a start, here’s the media release:
NZTA to call tenders for NZ’s biggest ever roading project
The NZ Transport Agency today announced that it is to call tenders to build the Waterview Connection, the biggest and most complex roading project ever in New Zealand.
The 4.5km long Waterview Connection, linking the Southwestern motorway (SH20) with the Northwestern motorway (SH16), includes two 3-lane tunnels for 2.5kms of the route.
NZTA chief executive Geoff Dangerfield says the Transport Agency is up to the challenge of delivering a project of this size.
“This is hugely exciting news for Auckland and for New Zealand,” he says. “A project of this scale is a first for New Zealand, and it will deliver many, many benefits for the country and the region.”
“This is an ideal time to tender as the current economic conditions enable us to get the best market prices. It confirms our commitment to deliver the project as quickly as possible and with the best value for money,” Mr Dangerfield adds.
Calling tenders for Waterview Connection works follows a decision by the NZTA’s Board to approve funding of up to $2bn to complete Auckland’s Western Ring Route road of national significance.
Mr Dangerfield says a project of this scale will attract international interest and could create over 1,000 jobs in construction-related activities at the peak of activity.
The NZTA will run the tender process in parallel with its application for statutory approvals, through the new national consenting process.
“Running the two in parallel will save us up to a year in the construction timetable as well as offer significant savings on the overall cost of the project,” says Mr Dangerfield.
Mr Dangerfield adds that no construction on the Waterview Connection will start until all the necessary consents and approvals are in place.
The NZTA will lodge its route designation and resource consent applications with the Environmental Protection Authority (EPA) in mid-August.
“We are continuing to give the community certainty as this project develops,” says Mr Dangerfield. “We are determined to work closely with them, and with local authorities and other stakeholders through the EPA process to address issues and concerns related to open space replacement, air quality, and construction impacts such as noise, traffic and dust.
Completing the Western Ring Route is one of the Government’s seven Roads of National Significance Projects to support and enable economic growth for the country. It involves extending State Highway 20 to link with the Northwestern motorway (SH16) at the Great North Road interchange, together with capacity improvements along the Northwestern motorway from St Lukes interchange to Westgate.
Once completed, the Western Ring Route will provide a 48km alternative to SH1 and the Auckland Harbour Bridge. It will reduce congestion and provide more reliable travel times for both freight and people.
The two things to me that stand out as quite interesting in this media release. The first is the funding issue – where seemingly out of the blue the price of this project has jumped from $1.4 billion to $2 billion. At first glance this seems like a giant increase of $600 million for the same thing, but it would seem as though the $2 billion costing actually relates to the works proposed to State Highway 16 (ie. the $800 million that will be flushed down the toilet by widening it). While I guess it’s good to get a final sum of what completing the Western Ring Route will cost, $2 billion is a heck of a lot of money.
The second issue that is quite interesting is that tendering for constructing the project will run alongside the consenting process. While I’m sure that is likely to save a bit of time, it does seem somewhat disrespectful to the consenting process. Already we know that the government is going to “call-in” the consenting of Waterview, into a new “one stop shop” process – thereby limiting the ability of the public to have their say in design changes that would improve mitigating its environmental effects. Adding this on top is almost like rubbing salt into the wounds of the community by saying “ha ha there’s absolutely no chance this will be declined consent, no matter how terrible it is, and we’re so confident of that we’re already letting the contract tenders”.
While I do think it’s very unlikely the project would be declined consent (for political reasons as much as anything else) through the new process, as appeals would only be possible on points of law to the High Court, if it was to be turned down the result would be quite catastrophic for NZTA. Which I guess gives the local community some hope.
I can’t help but wonder what kind of public transport improvements could be constructed for $2 billion.
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It is a lot of money but I do think this project is needed, especially once the Manukau section is finished and makes it much easier to get to SH20. At that time even more traffic will start spewing onto the local streets where the motorway comes to an end. I also think that the NZTA have been doing a lot better with design and mitigation of issues and I don’t see any reason why this wouldn’t continue.
I don’t even mind so much that they are starting the consenting process now, providing there are some clauses that if it doesn’t go ahead then the contracts canceled I don’t see much of a problem.
At the end of the day I don’t have a problem with this road but if it was this or the CBD tunnel then the CBD tunnel should come first.
I also don’t have much of a problem with Waterview, as it’s pretty dumb building 90% of the Western Ring Route but not the last 10%.
However, I do have a problem with spending $800 million on widening the Northwest Motorway when it’s likely that such widening will just induce more traffic, leading to the motorway being just as congested as it is now within a few years of the widening being completed.
You know I agree with you on the SH16 widening, I think it does need widening between Te Atatu and Royal but other than that leave it as is and just build a busway down it. I would also build a new road and bridge going from the roundabout at Rosebank Rd and Patiki Rd, heading across the water to about Mcloud rd. Upgrade Mcleod Rd a bit and you have a much better connection to Henderson, Glendene, Sunnyvale etc. That would help to take a lot of traffic off Te Atatu Rd and help to spread out the traffic a bit, far more effective than just making the NW parking lot bigger but still funneling all the cars through only a few off ramps (Te Atatu and Lincoln Rd)
Beware the sunk costs fallacy:)
The worthiness of the Waterview project should be assessed purely on:
a) whether the total incremental benefits of completing the route exceed the total incremental costs
and
b) if there is a net benefit, whether it exceeds the net benefit of other projects competing for the same funds
Personally I have yet to see convicing evidence of condition (a), let alone condition (b).
Speaking of the problems with local streets now, a workmate of mine who lives around that area has said that traffic is a whole lot worse now since they put the extension in.
How do you tender a project when due to consenting (presumably) you have know idea exactly what it will contain..?
The answer is you don’t either:
– The consenting process is a public image joke (most likely) or
– Legal problems or cost increases will result by an alteration to the tender agreement after the consenting process
Again I ask: How the hell did Joyce make any money..?
Well that’s the interesting thing, that as part of the consenting process there might be additional mitigation measures required (actually, one would hope that was an outcome, otherwise it’s pretty pointless even bothering with the consenting process).
These additional measures could vary from something simple – like higher sound walls – to something quite major, like a requirement that the tunnel extends further at its southern end to reduce effects on Allan Wood Reserve and the residents around it. That could make a big big difference to a contractor who has bid for the project on the basis of its preliminary design.
Such an outcome is not unheard of. NZTA wanted to hugely change the interchange at Onehunga as part of the Manukau Crossing Project, but their consent for that was turned down.
Lots of work and fees for lawyers renegotiating with the successful tenderer. Angry blood on both sides if mishandled. More costs in any case. Such sped-up processes do not come without a tag attached.