TG and P2W are highly complex major road projects that have significantly enhanced New Zealand’s regional road network. TG is a 27-km-long, four-lane motorway north of Wellington, part of the State Highway 1 (SH1) route. The P2W project extends the four-lane Northern Motorway (also part of SH1) by 18.5km, to the north of Auckland. Both projects involve challenging earthworks, drainage and major structures, including sophisticated measures to manage environmental impacts.

The projects are being delivered under availability-based PPPs. Executed in July 2014, TG was the first PPP road project in New Zealand, followed by P2W in November 2016.

Johnstaff was engaged by Waka Kotahi to provide specialist advisory services to support the TG and P2W project teams.

Johnstaff’s engagement responded to the February 2021 New Zealand Infrastructure Commission Te Waihanga Interim Project Review of TG and subsequent independent assurance reviews of both the P2W and TG projects, which all recommended that Waka Kotahi supplement its PPP management capability through engagement of a specialist advisor. The recommendations reflect the legal and commercial complexity of the PPP contracts, limited historical application of the PPP model by Waka Kotahi and the critical status of each project as they transitioned from delivery to the operational phase.

The scope of the specialist advisory services engagement has involved three broad stages: initial review of background information; engagement with Waka Kotahi and its stakeholders to identify key issues and risks and recommend mitigating actions; and ongoing, ad hoc advice to Waka Kotahi on specific issues and risks as they arise. Since July 2021, Johnstaff has maintained regular engagement with the project teams, addressing a wide range of issues spanning governance, operational phase management and commercial risk.