What you need to know
Transport projects can be delivered in different ways, including through public private partnerships, also known as ‘concessions’. These usually involve a contract with a private sector party to finance, build, operate and maintain infrastructure for a specified period of time. The private-sector party receives payment from the Government (the public-sector party). Payment is usually based on the private-sector party meeting agreed targets.
While the Government funds state highways largely from petrol excise duty and road user charges, in some instances this funding may also be supplemented by tolls. In New Zealand tolling is mainly used so a project can be started earlier than would have been possible. Local roads may also be tolled.
We provide transport policy advice to the Minister of Transport on tolling policy and public private partnerships. We advise the Minister on proposed tolling schemes and, with Treasury, approvals required for public private partnerships.
Public private partnership for Pūhoi to Warkworth confirmed
The Government gave Waka Kotahi approval to deliver the Pūhoi to Warkworth motorway project through a public private partnership.
Public private partnership for Transmission Gully confirmed
The Government gave Waka Kotahi approval to deliver the Transmission Gully project through a public private partnership.
Toll for Tauranga Eastern Link confirmed
In July 2010, the Government confirmed that users of the Tauranga Eastern Link would pay a toll. Construction began on the road in early 2011. Tolling the road meant construction was brought forward by around 7 years.
Road tolling scheme for Takitimu Drive (Route K) comes under Land Transport Management Act
Route K, an existing toll road, was brought under the tolling legislation as a state highway in the Land Transport Management Act in June 2015. Route K was previously a toll road, but as a local road under its own legislation, the Tauranga District Council (Route K Toll) Empowering Act 2000.