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Here’s hoping Transport Minister applies Transmission Gully lessons (and delays) to Light Rail project in Auckland

21/04/2021

This post makes clear that a number of factors contributed to the increase, not least issues occasioned by the COVID-19 crisis. It would be useful to know if the government took account, prior to entering into the PPP, of the many lessons to be learned from projects elsewhere? Was a rigorous risk analysis done of the process for incepting the project? Was a rigorous risk analysis done of the construction issues? How was the project pricing arrived at? Given the congenital inability which seems to afflict the NZ public service in respect of major projects, what comfort should we have, that this will not happen again? I suggest little comfort at all.

Point of Order

The Transmission Gully interim review has found serious flaws at the planning stage of the 27km highway, “undermining” the successful completion of the four-lane motorway north of Wellington, according to Infrastructure Minister Grant Robertson and Transport Minister Michael Wood.

Grant Robertson said the review found the public-private partnership (PPP) established under the last National government lacked the proper rigour and consideration.

The review was focused on how the project was awarded for the agreed price, whether the price was realistic, and whether the risks then identified were appropriately considered.

When  announcing  the  review  in  August last  year,  the  government said Transmission Gully would open by September 2021 but will cost another $208m to build, taking  the  cost  to $1.25bn.  Originally the  project’s  cost  was put  at $850m,   but Covid lockdowns  set it spiralling upwards.

At  that point in 2020 the government was  said  to have   “slammed” the delays and increased…

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