Extreme events bespoke arrangements for hardship reasons
Where there is evidence that an extreme event, or a series of large events, results in emergency works expenditure beyond an approved organisation's ability to raise local share and continue to provide appropriate levels of service on its network over the next three years, Waka Kotahi may consider a bespoke arrangement.
In making a decision on bespoke arrangements, Waka Kotahi will:
- estimate the local share of the annual emergency works by applying the above policy over the next three years, relative to the approved organisation's maintenance programme local share and its annual revenue. The expectation is that the local share of the emergency works would be a substantial proportion of both maintenance programme local share and revenue
- consider the financial position of the approved organisation and its ability to raise local share for the emergency works expenditure, ie evidence of hardship
- consider the urgency to complete the emergency works and ability to programme them over time.
The bespoke arrangement could, for instance, consist of a short-term enhanced emergency works FAR or Waka Kotahi could front load more of the emergency works spend in the first year or two with the approved organisation paying its local share over a longer time period.
An application for a bespoke arrangement that involves an enhanced FAR would trigger the Waka Kotahi significance policy, requiring the decision to enter an arrangement to be elevated to the Waka Kotahi Board. While any bespoke arrangement is being negotiated, the Waka Kotahi emergency works policy above will continue to apply.