This page relates to the 2021-24 National LandTransport Programme.
Waka Kotahi NZ Transport Agency's policy on business cases.
Date of issue: July 2021 │ Investment policies will be reviewed every three years or when a new Government Policy Statement on land transport is released.
The purpose of this policy is to ensure that all organisations applying for investment funding from the National Land Transport Fund (NLTF) or through the National Land Transport Programme (NLTP) understand the requirement to develop investment proposals using the Business Case Approach (BCA). This will ensure there is a fit-for-purpose, robust, evidence-based investment case which provides value for money.
The BCA is our (Waka Kotahi NZ Transport Agency’s) flexible method for guiding planning and investment development processes for activities. It breaks down the work that needs to be done to develop a robust business case to support an investment proposal.
Because the BCA is principles based, approved organisations and Waka Kotahi (for its own activities) can develop business cases in a fit-for-purpose way, depending on the type of issue or opportunity to be addressed, and the risk and cost of the proposed investment. The BCA is aligned with The Treasury’s Better Business Cases.
More information the BCA is available on our website.
All organisations must use the principles of the BCA when developing investment proposals for funding from the NLTF.
We assess investment proposals by using a set of standard investment questions based on the stage or type of business case. This is to ensure the investment proposal is evidence based, sufficiently developed, cost effective and aligned with the government’s strategic priorities for land transport investment, as outlined in the Government Policy Statement on land transport.
All organisations should follow the principles of the BCA when undertaking transport planning work, such as preparing activity management plans (AMPs) and regional land transport plans (RLTPs). We have developed specific guidance on how to apply the BCA principles to AMPs, RLTPs and regional public transport plans, which must be followed. Using BCA principles when undertaking transport planning work involves exploring strategic and programme level issues through the transport planning work, reducing rework at an activity level and ensuring timely, robust investment proposals.
We will provide guidance and support for organisations in using the BCA to help build capability in the transport sector.