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Introduction

In June 2018, the NZ Transport Agency Board agreed that targeted enhanced funding assistance rates (TEFAR) shall apply in the 2018–21 National Land Transport Programme (NLTP) for Approved Organisations’ activities with high and very high results alignment, as assessed under the Transport Agency's Investment Assessment Framework (IAF), that are also included in one of five new National Priority Programmes (NPP).

All new and existing projects within the 2018–21 NLTP will be assessed to determine their eligibility for a TEFAR under this policy. Regional Land Transport Plans (RLTPs) and the NLTP can be varied during 2018–21 to add eligible projects that were not included before 30 June 2018.

2018–21 NLTP National Priority Programmes for targeted enhanced rates

Five National Priority Programmes (NPPs) are being developed by the Transport Agency to support the Government’s key Government Policy Statement strategic priorities of safety, mode shift, resilience and regional economic development.

 

  • The five National Priority Programmes

    The five National Priority Programmes (NPPs)

    The five NPPs are:

    National Priority ProgrammePrimary outcome
    Safety on local roads Reduce the number of deaths and serious injuries on the transport network
    Improving the effectiveness of public transport Support an expansion in public transport networks and services
    Walking and cycling improvements Support an expansion in walking and cycling infrastructure
    Improving network resilience Support local road and state highway improvements and upgrades that provide resilience
    Regional Improvements Support investment in regional activities that improve safety, resilience, the environment and access for people and goods

    The purpose of the NPP is to bring forward activities in each of these areas and ensure that local government have the necessary support to deliver these in the 2018–21 NLTP. The first tranche of activities qualifying for the NPPs have been identified through the NLTP process. Local government is now encouraged to identify new activities that would also qualify for these programmes.

    The Transport Agency will work with Approved Organisations to ensure criteria are clear to identify suitable projects and to develop priority programmes. An implementation start is expected to be made early in the 2018–21 NLTP. Should available funding or funding ranges be over-allocated as a result of the targeted enhanced FAR, there may be a need to manage funding later in the NLTP.

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Conditions of funding at targeted enhanced FAR

Activities that are included in a NPP will be eligible for the targeted enhanced funding assistance rates (TEFAR). The TEFAR will help local government bring forward additional projects by reducing their ‘local share’ requirement. The TEFAR is set halfway between a council’s normal FAR and 100 percent. It is capped at 90 percent.

 

  • Criteria for TEFAR eligibility

    Criteria for TEFAR eligibility

    The criteria local authorities must meet for activities to be eligible for TEFAR are: 

    • Activities must be included within the scope of one of the five NPPs listed above
      • Eligibility for inclusion in one of these programmes will be for activities whose primary outcome (as recorded in Transport Investment Online (TIO)) aligns with one of these areas.

     

    • Activities must have a High or Very High results alignment defined by the Investment Assessment Framework (IAF)
      • Results alignment will be assessed by the Transport Agency on the basis of information submitted in TIO.
      • A local authority may request the reconsideration of the Transport Agency’s assessment of results alignment based on new information.

     

    • Improvement activities are eligible for the TEFAR
      • Eligible activities can be service or infrastructure improvements, and could include trials for service improvements, such as public transport.
      • Improvement activities that are included in NLTP after 30 June 2018 through a variation to the RLTP.
      • Activities approved under the 2015-18 NLTP that have not incurred any costs or are not under contract.
      • Travel demand management activities are eligible for TEFAR.

     

    • In general, only costs incurred during 2018–21 NLTP period will be eligible for TEFAR
      • TEFAR can be applied to both the development, such as business case, and implementation of improvement activities.

     

    • Activities within the Low Cost/Low Risk programmes may be eligible for TEFAR
      • Approved Low Cost/Low Risk (LC/LR) programmes, in their entirety, are not automatically eligible for TEFAR. This is because they include activities that may not reach the high or very high results alignment threshold.
      • If a local authority is able to demonstrate that any individual activity within a LC/LR programme has a high or very high results alignment, it aligns with the scope of a NPP and this is confirmed by the Transport Agency’s assessment, then those activities will be eligible for TEFAR.

     

    • All activities must be substantially (80%) completed by June 2021
      • The requirement to be substantially completed by June 2021 will apply to all activities that are eligible for TEFAR or any additional activities that have been enabled by TEFAR, and been brought forward for investment.
      • If an activity has been substantially delivered in the 2018–21 NLTP period, the residual costs beyond 2021 will continue to be eligible for TEFAR.

     

    • Any local share released by TEFAR, must be allocated to other transport related projects
      • The “local share savings” must be spent on other activities that are eligible for inclusion in the NLTP and meet any of the standard investment criteria set out in the activity class and work category definitions.
      • It is the choice of local government what the saving is invested in, provided it is transport related. It can be in any activity, whether improvement or continuous programmes and regardless of the assessment profile of that activity. Approved Organisations are encouraged to reinvest their local share in improvements that advance the priorities of the NPPs.

     

    • Confirming the TEFAR
      • A letter from the local authority identifying the activities the local authority wishes to receive the TEFAR for and committing to spending the savings on other transport-related matters should be forwarded to the Director Regional Relationships.
      • If the activity meets the eligibility criteria set out in this guidance, the local authority can be assured that the enhanced FAR will be applied. They can then proceed to implementation with confidence.
      • For each activity approved to receive the TEFAR, a condition subsequent will be imposed at the point of funding approval. This will set out that the TEFAR is conditional on the local authority using the savings to re-invest in land transport. There will be no further formal notification that the enhanced FAR is being granted.

     

    • Monitoring TEFAR
      • Activities and progress will continue to be monitored and reported on quarterly through the Programme Monitor and regular engagements between the Transport Agency and local authorities.
      • The Transport Agency expects that any local authority who has activities within a NPP will notify the Transport Agency if any of the above conditions will not be met.
      • If it appears that TEFAR project or additional project/activity will not be delivered, and/or conditions of approval will not be met, then the Transport Agency reserves the right to withdraw the TEFAR, and apply the AOs normal FAR for the activity or programme.
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Exclusions

Activities excluded from TEFAR are:

  • Any improvement activity approved for funding in the previous NLTP, where contracts have been awarded, or claims made, will not be eligible for TEFAR.
  • Continuous programmes are not eligible for TEFAR.

Next steps

Next steps are:

  • Local authorities can identify additional activities in any of the five NPP areas to bring forward. Provided they meet the criteria outlined, they will also receive the TEFAR.
  • Local authorities can withdraw activities already submitted in low cost, low risk (LC/LR) programmes if they believe that these activities meet the criteria for eligibility to receive the enhanced FAR.
  • Local authorities should submit a second LC/LR programme that only includes those activities they wish to put forward to receive the TEFAR. Each activity proposed should include evidence that will help assessors assess the results alignment of the activities within. TIO is being adjusted to allow this.
  • Individual activities (whether new or formally part of the low cost, low risk programme) will need to be assessed by the Transport Agency to ensure that they meet the criteria for eligibility for the TEFAR.
  • Local authorities should notify the Agency of which activities they wish to receive the TEFAR for through their normal Transport Agency relationship management contact.

Targeted enhanced FAR tables

The tables below set out the targeted enhanced rates for Approved Organisations.

 

  • North Island

    Targeted enhanced FAR - North Island

    Approved organisation

    2018-21 normal FAR

    Targeted   enhanced FAR 2018-21

    Far North District Council

    66%

    83.0%

    Kaipara District Council

    61%

    80.5%

    Northland Regional Council

    54%

    77.0%

    Whangarei District Council

    53%

    76.5%

    Auckland Council

    51%

    75.5%

    Auckland Transport

    51%

    75.5%

    Hamilton City Council

    51%

    75.5%

    Hauraki District Council

    60%

    80.0%

    Matamata-Piako District Council

    51%

    75.5%

    Otorohanga District Council

    58%

    79.0%

    South Waikato District Council

    62%

    81.0%

    Taupo District Council

    51%

    75.5%

    Thames-Coromandel District Council

    51%

    75.5%

    Waikato District Council

    52%

    76.0%

    Waikato Regional Council

    51%

    75.5%

    Waipa District Council

    51%

    75.5%

    Waitomo District Council

    73%

    86.5%

    Bay of Plenty Regional Council

    51%

    75.5%

    Kawerau District Council

    75%

    87.5%

    Opotiki District Council

    75%

    87.5%

    Rotorua District Council

    55%

    77.5%

    Tauranga City Council

    51%

    75.5%

    Western BoP District Council

    51%

    75.5%

    Whakatane District Council

    64%

    82.0%

    Gisborne District Council

    68%

    84.0%

    Central Hawkes Bay District Council

    60%

    80.0%

    DOC (Hawkes Bay)

    51%

    75.5%

    Hastings District Council

    54%

    77.0%

    Hawkes Bay Regional Council

    51%

    75.5%

    Napier City Council

    51%

    75.5%

    Wairoa District Council

    75%

    87.5%

    New Plymouth District Council

    51%

    75.5%

    South Taranaki District Council

    58%

    79.0%

    Stratford District Council

    57%

    78.5%

    Taranaki Regional Council

    51%

    75.5%

    DOC (Manawatu-Wanganui)

    51%

    75.5%

    Horizons Manawatu

    51%

    75.5%

    Horowhenua District Council

    59%

    79.5%

    Manawatu District Council

    53%

    76.5%

    Palmerston North City Council

    51%

    75.5%

    Rangitikei District Council

    63%

    81.5%

    Ruapehu District Council

    72%

    86.0%

    Tararua District Council

    66%

    83.0%

    Wanganui District Council

    61%

    80.5%

    Carterton District Council

    53%

    76.5%

    Greater Wellington Regional Council

    51%

    75.5%

    Hutt City Council

    51%

    75.5%

    Kapiti Coast District Council

    51%

    75.5%

    Masterton District Council

    57%

    78.5%

    Porirua City Council

    56%

    78.0%

    South Wairarapa District Council

    52%

    76.0%

    Upper Hutt City Council

    51%

    75.5%

    Wellington City Council

    51%

    75.5%

    Nelson City Council

    51%

    75.5%

    Marlborough District Council

    51%

    75.5%

    Tasman District Council

    51%

    75.5%

    Ashburton District Council

    51%

    75.5%

    Christchurch City Council

    51%

    75.5%

    DOC (Mt Cook)

    51%

    75.5%

    Environment Canterbury

    51%

    75.5%

    Hurunui District Council

    51%

    75.5%

    Kaikoura District Council

    51%

    75.5%

    Mackenzie District Council

    51%

    75.5%

    Selwyn District Council

    51%

    75.5%

    Timaru District Council

    52%

    76.0%

    Waimakariri District Council

    51%

    75.5%

    Waimate District Council

    60%

    80.0%

    Buller District Council

    66%

    83.0%

    DOC (Hokitika)

    51%

    75.5%

    Westland District Council

    59%

    79.5%

    Chatham Islands Council

    88%

    90.0%

    Central Otago District Council

    51%

    75.5%

    Clutha District Council

    59%

    79.5%

    Otago Regional Council

    51%

    75.5%

    Queenstown-Lakes District Council

    51%

    75.5%

    Waitaki District Council

    55%

    77.5%

    Gore District Council

    55%

    77.5%

    Southland District Council

    51%

    75.5% 

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  • South Island including Chathams

    Targeted enhanced FAR - South Island including Chatham Islands

    Approved organisation

    2018-21 normal FAR

    Targeted   enhanced FAR 2018-21

    Nelson City Council

    51%

    75.5%

    Marlborough District Council

    51%

    75.5%

    Tasman District Council

    51%

    75.5%

    Ashburton District Council

    51%

    75.5%

    Christchurch City Council

    51%

    75.5%

    DOC (Mt Cook)

    51%

    75.5%

    Environment Canterbury

    51%

    75.5%

    Hurunui District Council

    51%

    75.5%

    Kaikoura District Council

    51%

    75.5%

    Mackenzie District Council

    51%

    75.5%

    Selwyn District Council

    51%

    75.5%

    Timaru District Council

    52%

    76.0%

    Waimakariri District Council

    51%

    75.5%

    Waimate District Council

    60%

    80.0%

    Buller District Council

    66%

    83.0%

    DOC (Hokitika)

    51%

    75.5%

    Westland District Council

    59%

    79.5%

    Chatham Islands Council

    88%

    90.0%

    Central Otago District Council

    51%

    75.5%

    Clutha District Council

    59%

    79.5%

    Otago Regional Council

    51%

    75.5%

    Queenstown-Lakes District Council

    51%

    75.5%

    Waitaki District Council

    55%

    77.5%

    Gore District Council

    55%

    77.5%

    Southland District Council

    51%

    75.5% 

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  • Approved Organisations under transition

     Targeted enhanced FAR - Approved Organisations under transition

    Approved Organisation

    2018/19 Normal FAR

    Targeted  enhanced FAR 2018/19

    2019/20 Normal FAR

    Targeted   enhanced FAR 2019/20

    2020/21 Normal FAR

    Targeted   enhanced FAR 2020/21

    Grey   District Council

    59%

    79.5%

    58%

    79.0%

    58%

    79.0%

    West Coast Regional   Council

    64%

    82.0%

    63%

    81.5%

    62%

    81.0%

    Dunedin   City   Council

    56%

    78.0%

    55%

    77.5%

    54%

    77.0%

    Environment Southland

    60%

    80.0%

    58%

    79.0%

    56%

    78.0%

    Invercargill    City Council

    57%

    78.5%

    56%

    78.0%

    54%

    77.0%

     

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Recently asked questions

  • Are public transport concession fares for youth eligible for TEFAR?

    Youth concession fares are unlikely to be eligible for TEFAR. To be eligible, it will be necessary to establish there is a clear need for an increased level of service and that concession fares would substantially increase service levels. In addition, as TEFAR activities must be at least 80 percent complete by the conclusion of the 2018-21 NLTP, to be eligible for TEFAR the concession fares would need to be offered as a short-term trial only.

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