Investment and funding assistance policy

The government sets out its direction to the sector and Waka Kotahi over the next 10 years through its objectives, results and investment strategy set out in the GPS. Waka Kotahi must give effect to the GPS and does so by:

• applying its Investment Assessment Framework  to investments proposed for inclusion in the National Land Transport Programme (NLTP), and subsequent funding from the NLTF, to give priority to those activities that will best deliver on the government's desired long, medium and short term results set out in the GPS
• allocating funding to the activity classes defined in the GPS within the funding ranges prescribed by the government in the GPS
• developing and managing the NLTP to optimise delivery of programmed activities within available revenue, including use of short-term debt to manage cash-flow variations.

The government provides Crown funding to progress transport activities outside of the NLTF, as either the activities do not have sufficient priority to be delivered in the current NLTP or they deliver on government policy not covered by the LTMA. Waka Kotahi delivers the activities as directed by the government. Current Crown funds and loans are described at this link.

Waka Kotahi uses investment principles to guide the development and update of investment policies, and to guide their interpretation. 

For further details, refer to investment principles.

Waka Kotahi planning and investment principles are a primary driver of its investment policy. In particular, the following aspects of the principles are seen as critical to its policy:

• a collaborative approach to planning and development of investment opportunities
• a transport network that is integrated across modes, within areas, eg inter-region/region/district/sub-district, and amongst organisations
• progressive development of a robust, evidence based investment case under the business case approach
• optimising the provision, use and maintenance of the network, particularly in the application of the investment hierarchy
• right outcomes, at the right time, at the right cost and risk
• those who pay should benefit, which underlies Waka Kotahi funding assistance policy and expectations around supplementary (third party) funding.

The Investment Assessment Framework is a key means by which Waka Kotahi gives effect to the GPS through its assessment and prioritisation of land transport investment proposals. 

Waka Kotahi assists the funding of activities it co-invests with approved organisations under its funding assistance policy.

The authority to approve funding to specified levels has been delegated by the Board to Waka Kotahi staff and approved organisations. The delegations policy also enables the management of cash-flows for maintenance, low cost low risk improvements and public transport services programmes within approved levels.

Waka Kotahi employees and contractors with delegations need to consider the significance of every decision before the decision is made. The significance policy helps you assess if you need to elevate the decision to ensure it’s made at the appropriate level.

Sub-delegates should consider what the impact of a decision made under that function or power will be on:

• The capacity of Waka Kotahi to perform its roles and the costs associated with this.
• The ability of Waka Kotahi to reach its goals and objectives.
• Any persons likely to be particularly affected by the decision and the way in which they are going to be affected.

The Significance policy and guidance(external link) page sets out Waka Kotahi policy in relation to a “significance” threshold with respect to the delegation of functions and powers.  Note that this page is currently internal to Waka Kotahi, but may be moved in future. This policy is effective from 6 May 2016 and is due for review in 1 June 2018.

When Waka Kotahi approves NLTF funding for activities, including approvals made under delegation it places certain obligations on those using the funds.

Under the Land Transport Management Act Waka Kotahi may propose tolling new roads and apply for an order in council to do so. Revenue from the tolling scheme flows into the NLTF. Waka Kotahi policy on tolling may be accessed at this link.

While the foundation of the NLTP is funded on a 'pay-go' basis, ie investment is matched to the revenue available in a year, debt funding and public private partnership arrangements may be considered under Waka Kotahi policy to advance large strategic projects with the approval of the Ministers of Transport and Finance.

In certain circumstances Waka Kotahi may enter into FAR adjustment or front loading arrangement with approved organisations to vary the timing of NLTF and local share payments for an activity.

Guidance on funding assistance for multi-party projects is provided at this link.

Policy and guidance on Waka Kotahi's professional services policy and administration policy are provided.