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This page relates to the 2018-21 National Land Transport Programme.

Introduction

This section provides criteria and guidance to assist approved organisations and Waka Kotahi in the application of targeted enhanced funding assistance rates (TEFARs). These can be used to incentivise delivery of specific transport outcomes, or to encourage a significant change in an approved organisation’s performance. TEFARs apply to specific activities in exceptional circumstances and for limited periods of time. For example, higher funding assistance targeted LED streetlighting replacement for the period to 30 June 2021.

 

Definition

TEFARs are funding assistance rates (FARs) that are higher than normal FARs and are applied in exceptional circumstances and for limited periods of time to either:

  • facilitate an activity, GPS priority or outcome that is particularly important from a national land transport perspective, where it is highly likely it would not proceed within an appropriate timeframe if additional funding assistance was not provided, or
  • give a kick start to encourage and enable an approved organisation to make a significant change.

Any TEFAR shall cease after a predetermined date, unless there is available NLTF funding and clear justification that is consistent with the original criteria to extend its application.

 

Criteria to apply in considering the use of TEFARs

Where an opportunity arises to achieve a significant change that addresses priorities in the Government Policy Statement on land transport (GPS), and in deciding whether or not to use a TEFAR to deliver this change, Waka Kotahi must be satisfied a range of criteria are met.

  • Criteria to apply

    Waka Kotahimust be satisfied the following criteria are met:

    1. The outcomes intended to be achieved by the proposed TEFAR are clearly defined, align with the priorities identified in the GPS, and can be monitored.
    2. The intended outcomes address an exceptional, unforeseen and immediate need that will deliver GPS priorities as a significant change ahead of normal funding capability in the short term.
    3. Use of the TEFAR achieves value for money when assessed incrementally.
      The approved organisations will be able to deliver the outcomes sought from the application of the TEFARs.
    4. There is sufficient headroom within the GPS funding range for the relevant activity class, and sufficient funding in the National Land Transport Fund (NLTF) to enable funding to be made available for use of the TEFAR.
    5. There is evidence that approved organisations would have material difficulty in finding the local share of the costs of the activity within an appropriate timeframe through application of normal FARs.
    6. The relevant approved organisations have sufficient capability to use the TEFAR to achieve the intended outcomes or can be provided with sufficient guidance to do so.
    7. The approved organisations will be able to commit to funding the local share to maintain the new or improved infrastructure or level of service once the TEFAR ceases.
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Guidance for setting the TEFAR

TEFARs are set on a case-by-case basis and do not set a precedent for subsequent proposals. Some considerations to take into account in setting a TEFAR are:

  • the extent to which the TEFAR achieves value for money when assessed in comparison with a normal FAR 
  • the rate should be positioned sufficiently above the normal FARs of the relevant approved organisations to incentivise delivery of targeted outcomes in the specified timeframe
  • the rate should ensure that approved organisations continue to have a reasonable share of the ownership and risk in the costs of delivering their activities.

 

Business case to be developed

A proposal to use a TEFAR should:

  • set out the purpose of and outcomes intended from the proposal
  • describe the options considered, the preferred option and the process undertaken to select the preferred option
  • demonstrate how well each of the eight criteria is met
  • provide evidence that the proposal represents value for money and the guidance above for setting the rate has been taken into account.

 

Engagement and review

Waka Kotahi will:

  • consider whether to carry out general or targeted engagement prior to deciding to use a TEFAR
  • complete a review of each application for a TEFAR to gauge its success and help improve policy and guidance.

Further information

For details about TEFARs in effect during the 2018-21 NLTP, see 2018-21 NLTP targeted enhanced funding assistance rates.