Funding approvals

This page relates to the 2024-27 National Land Transport Programme.

Introduction

This page explains the process for how approved organisations and NZ Transport Agency Waka Kotahi (NZTA; for its own activities) may seek funding approval or a variation of a funding approval and the associated terms, conditions and obligations.

Definition of terms

Funding approval: approval given by us (NZTA as investor) under section 20 of the Land Transport Management Act 2003.

For information about the National Land Transport Programme (NLTP) and NLTP funding and investment, including the up-to-date programme and the NLTP transport programme funding data dashboard, see:

NLTP funding and investment

Funding approval

An approved organisation or NZTA (for its own activities) may apply for funding approval, or variation of an existing funding approval, for a new activity or a phase of an activity.

All organisations and NZTA (for its own activities) must use the principles of the Business Case Approach when developing an investment proposal for funding from the National Land Transport Fund (NLTF). Where necessary a fit-for-purpose business case should be developed to support an investment proposal. With our agreement, a business case may not be required to support an investment proposal, due to the nature of the activity (for example, development of a regional land transport programme, development of a business case), or where there is existing information in a different form that is sufficient to support an investment proposal (for example, an activity management plan), or we have agreed that a business case is not required.

Business Case Approach guidance

The funding approvals and funding variations process diagram provides details of the funding approvals and variations process.

Funding approvals and funding variations process diagram [PDF, 188 KB]

Engage with your investment advisor and they will step you through the process and requirements.

Investment advisors review investment proposals and assist with their finalisation as follows:

• progress the proposal for decision making
• seek additional information to complete the assessment, or
• complete an investment quality assurance (IQA). For activities with a cost greater than $50m or where the funding decision is of significance to the NZTA Board the Investment Assurance team within the Investment & Finance group shall review and provide investment assurance advice.
• make a recommendation for consideration in the decision-making process.

For funding to be approved, approved organisations and NZTA (for its own activities) are required to complete all Transport Investment Online (TIO) fields to support the assessment and provide a record of the investment proposal and decision. It is vital that this information is of a high standard and is kept up to date.

Terms and conditions of funding approval

There are general terms and conditions that apply to our approval or endorsement of funding from the NLTF during the 2024–27 NLTP period. To be eligible for approval or endorsement an application must be compliant with these conditions.

Terms and conditions of National Land Transport Fund funding

In addition, where it is relevant and reasonable as we (NZTA as investor) think fit, we may set additional terms or conditions in relation to a funding approval.

Conditions of endorsement or approval will fall into one of 2 categories:

• Condition precedent means that the condition must be fulfilled before the support, endorsement or approval from us is put into effect. For a funding approval this will mean that no funding will be released until the condition is met.
• Condition subsequent means that the condition needs to be fulfilled by a specified time or event, but the decision can be put into effect. For a funding approval this will mean that funding can be released before the condition is met. Often, conditions subsequent will need to be fulfilled before the next funding application for an activity.

Conditions are recorded and managed through TIO. Examples of where additional conditions of funding approval may be applied include:

• a decision to limit or cap funding
• a requirement to undertake a specific action before the funding is approved (condition precedent) such as entering into a multi-party funding agreement
• a requirement to undertake a specific action after the funding is approved (condition subsequent) such as seeking approval of the design before proceeding with implementation.

Funding obligations

Once funding has been approved the applicant must ensure that the use of those funds complies with the NZTA National Land Transport Fund Claims and Obligations Policy. 

National Land Transport Fund Investment Claims and Obligations Policy

Variation of funding approval

In accordance with the National Land Transport Fund Investment Claims and Obligations Policy, an approved organisation or NZTA (for its own activities) must inform us as soon as it is aware of the need to adjust scope or costs or both in respect to the approved activity. An application for a variation of funding approval shall be made using the cost scope adjustment or price level adjustment form.

The NZTA investment advisor will assess the application and make a recommendation for consideration in the decision-making process.

NZTA variation request process, procedures and checklist [PDF, 451 KB]

Variation request form [DOCX, 113 KB]