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Public-Private Partnership for Transmission Gully

Updated: 29 July 2014

In July 2014, the NZ Transport Agency signed a Public Private Partnership contract with the Wellington Gateway Partnership.  Under the terms of the PPP contract, the Wellington Gateway Partnership will design, construct, finance, operate and maintain the new Transmission Gully motorway for the 25 years that will follow the expected five-year period to build the motorway. It is aimed to have the motorway open for traffic by 2020.

Oblique view of the Transmission Gully

A Public Private Partnership (PPP) is a long-term contract between the public and private sectors covering the financing, construction and operation of a public infrastructure and services.  Full ownership of the public infrastructure remains with the public sector.

PPPs allow large and complex projects to benefit from private sector innovation and funding which can increase certainty of delivery and drive better value-for-money. There are also savings to be had on all aspects of the project - design, build, maintenance and operational management.

PPPs are typically used for large-scale infrastructure projects where risks can be effectively identified and transferred to the private sector. The NZ Transport Agency aims to use successful ideas and innovations that come out of the Transmission Gully PPP across other highway projects and the wider transport network.