Investment Prioritisation Method document

This page relates to the 2024–27 National Land Transport Programme.

Introduction

The Investment Prioritisation Method (IPM) for the 2024–27 National Land Transport Programme (NLTP) is used to prioritise activities into the 2024–27 NLTP and at the funding approval stage.

Government Policy Statement on land transport 2024(external link)

It includes 3 prioritisation factors to give effect to the Government Policy Statement on land transport (GPS) 2024. It also includes a prioritisation matrix that sets out how the 3 prioritisation factors combine to determine an overall investment priority ranking.

IPM document

The IPM document below provides full details of the criteria and how to determine an investment priority ranking in the 2024–27 NLTP.

Final 2024–27 Investment Prioritisation Method [PDF, 728 KB]

The 3 factors for investment prioritisation

In applying the IPM for the 2024–27 NLTP, we consider the following 3 factors in the assessment of each proposed activity:

1. GPS alignment – how a proposed activity aligns with the GPS strategic priorities and, at the investment approval stage, its potential contribution to the GPS strategic priorities. The GPS 2024 has 4 strategic priorities: economic growth and productivity, increased maintenance and resilience, safety and value for money.
2. Scheduling – indicates whether the phase of a proposed activity should be included in the 2024–27 NLTP or a subsequent NLTP period.
3. Efficiency – indicates the extent of the contribution to outcomes relative to costs. Efficiency is determined by considering the whole-of-life costs and benefits primarily through cost-benefit analysis, present value analysis and cost performance benchmarking.

The IPM includes rating criteria tables for each of the 3 factors to determine the degree to which activities align with the priorities and results sought in the GPS 2024 and meet the scheduling and efficiency factors.

Determining and applying the priority order of activities

We assign a priority order to a phase of an activity in an activity class by using the 3 prioritisation factors in a matrix.

Activities that achieve a priority order above an investment threshold in their activity class are included in the NLTP. The NZTA Board sets the investment threshold based on the funding range for each activity class as set out in the GPS 2024.

2024–27 NLTP activity classes and work categories

Continuous programmes included in some activity classes are prioritised according to these factors and guidance about right-sizing the programmes. Examples of these programmes are local road operations and local road pothole prevention, road safety promotion programme and public transport services.

Definitions and description of criteria

In appendix 2 of the IPM document, information is provided on terms with specific meanings in the context of the IPM and in the tables supporting the assessment of the 3 IPM factors: GPS alignment, scheduling and efficiency.