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This page relates to the 2018–21 National Land Transport Programme (NLTP) only.

Introduction

This work category provides for the construction/implementation of low cost, low risk improvements to the transport system to a maximum total cost for approval per project of $1,000,000.

Qualifying activities

The work category includes a range of qualifying activities.

  • Examples of qualifying activities

    Examples of qualifying activities 

    Examples of qualifying activities include, but may not be limited to:

    • small, isolated geometric road and intersection improvements

    • traffic calming measures

    • traffic management systems

    • surface treatment (safety), including sealing for bridge approaches

    • lighting improvements for safety

    • installation of new traffic signs and markings (including rumble strips), or upgrading these to the current standard

    • provision of guard-railing

    • sight benching to improve visibility

    • walking facilities that comply with the definition for Work category 451: Walking facilities

    • cycling facilities that comply with the definition for Work category 452: Cycling facilities

    • structures, culverts or stock access (including stock underpasses)

    • resilience improvements within the definition for Work category 357: Resilience improvements

    • replacement of bridges and other structures within the definition of Work category 322: Replacement of bridges and other structures

    • stock effluent facilities

    • minor engineering works associated with community programmes, such as raised platforms at roundabouts, traffic signals and other pedestrian facilities, and

    • property and professional services costs associated with the improvement.

    Other potential activities that are not in the above list should be discussed with the Transport Agency for eligibility.

    Funding is subject to the conditions set out below.

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Exclusions

A range of exclusions applies to the work category.

  • Exclusions

    Exclusions

    The work category excludes:

    • any local improvement project funded with a FAR other than the Approved Organisation’s normal FAR
    • any improvement project with an estimated total cost for approval (after deducting third party/supplementary funding from the total cost) of over $1,000,000 – these must be developed as individual improvements projects under the appropriate work category
    • public transport low cost, low risk activities (under $1,000,000) aside from road based improvements – these must be added to the low cost, low risk public transport improvements.
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Conditions of funding (for project inclusion)

Each Low cost, low risk improvements programme must be supported by a list of projects using the Transport Agency's template, which can be downloaded from Transport Investment Online (TIO). 

If an Approved Organisation does put a project forward with an estimated total cost of over $1.0 million as a Low cost, low risk improvement, the Transport Agency will only financially assist such a project to a cap of $1.0 million and any amount over this cap will be treated as third party/supplementary funding, which the Approved Organisation must fund itself. For example, a project of $1.2 million total cost will be assumed to have $200,000 third party/supplementary funding and the Transport Agency will assist funding only to the $1.0 million total cost for approval maximum.

 The $1.0 million total cost for approval maximum includes professional services, property and construction/implementation costs.

 A Low cost, low risk roading improvement project cost must not be split or claimed over multiple work categories and activity classes. It must be claimed only under Work Category 341.

 A project must not be split into more than one low cost, low risk improvement project to circumvent the $1.0 million total cost for approval cap.

 The total cost for approval of any multi-party funded Low cost, low risk improvement project must not exceed the $1.0 million cap across all funding parties.

 If the tender price for a planned Low cost, low risk improvement project means that its total cost exceeds the $1.0 million limit, either it is withdrawn as a low cost, low risk improvement and resubmitted as a stand-alone project in Transport Investment Online (this applies to all affected Transport Agency (state highway) projects) or it remains as a low cost, low risk improvement and any amount over the limit will be treated as third party/supplementary funding, which the Approved Organisation must fund itself.

 Where the actual outturn total cost for approval exceeds the tendered cost and exceeds the $1.0 million limit, the project may remain as a low cost, low risk improvement and receive funding assistance against all of the total cost for approval, provided the Transport Agency representative relevant to the Approved Organisation agrees that the reasons for the increased cost are justified and that the increase is reasonable.

Conditions of funding (programme submission and management)

Funding approval for the Low cost, low risk programme at the start of the new NLTP is conditional on each programme being supported by a list of projects and on the cash-flows of these projects being captured in the Low cost, low risk roading improvements template.

The template list is expected to be maintained and updated regularly.  A condition precedent also exists for claiming in the new financial year, specifically the template must be updated by 31 August of each year.  This means:

  • by 31 August of the first year of the new NLTP the template related to the previous NLTP must be updated with final cash-flows for individual projects;
  • by 31 August for each of the second and third years the current NLTP Low cost, low risk template must be updated to reflect actual project expenditure in the previous year and cash-flows for committed activities and projects planned to commence in the balance of the NLTP period . 

Claiming for Low cost, low risk programmes will be placed on hold until the conditions above are met.

The Transport Agency template, which can be downloaded from TIO, must be used for all proposed Low cost, low risk improvements programmes.  This template has been created in Excel 2007 and that the "Summary of Activities" worksheet will show #NAME? errors if opened in Excel 2003.

Funding assistance rate

The usual funding assistance rate is:

  • the Approved Organisation's normal FAR
  • the Approved Organisation's special purpose FAR, or
  • 100% of the Transport Agency's state highway costs.

Applying for funding approval

Applications for funding approval of proposed projects should be made through the Low cost, low risk improvements module in Transport Investment Online(external link) (TIO).

End of year carryover

There is no carry-over of funding from one NLTP to the next. The remaining cash-flows of any uncompleted projects started in the previous NLTP need to be included in the new NLTP and the programme funding allocation approved for that NLTP will be applied to these projects.

Within the NLTP period, approved funding from one year to the next may be carried over at a programme level. There is no funding allocation at a project level and the remaining approved funding allocation for the programme will be applied to Low cost, low risk projects that may span more than one year within the NLTP period. 

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