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The New Zealand Transport Agency has announced today that it will enter into preferred bidder negotiations with the Northern Express Group for the Puhoi to Warkworth project – the second Public Private Partnership (PPP) for a state highway project in New Zealand.

NZ Transport Agency Chief Executive Fergus Gammie said the Northern Express Group was one of three shortlisted consortia that the Transport Agency had invited to submit a proposal for the financing, design, construction, management and maintenance of the Pūhoi to Warkworth motorway under a PPP procurement. As we reported in August 2015, the three shortlisted teams were, namely:

• Northlink - made up of Cintra Developments Australia Pty Ltd, InfraRed Infrastructure III General Partner Ltd, John Laing Investments Ltd, Ferrovial Agroman Ltd, Fulton Hogan Ltd.

• Northern Express Group - Made up of Accident Compensation Corporation, HRL Morrison & Co Public Infrastructure Partners, Acciona Concesiones S.L., Fletcher Building Ltd, Macquarie Group Holdings New Zealand Ltd, Acciona Infrastructure Australia Pty Ltd, The Fletcher Construction Company Ltd, Higgins Contractors Ltd.

• Pacific Connect - made up of Pacific Partnerships Pty Ltd, VINCI Concessions S.A.S., ACS Infrastructure Australia Pty Ltd, Aberdeen Infrastructure Investments (No.4) Ltd, Leighton Contractors Pty Ltd, HEB Construction Ltd.

The Puhoi - Warkworth is a 18.5km stretch of new 4-lane highway, the 38 km Ara Tuhono - Puhoi to Wellsford road, which is divided into two sections: Puhoi - Warkworth and Warkworth -Wellsford. The new motorway is one of seven Roads of National Significance (RoNs) identified by the government as key to unlocking New Zealand's potential for economic growth. 

The total investment for the Ara Tuhono - Puhoi to Wellsford road is estimated at about NZ$760 million (US$546 million). The project aims to extend the Northern Motorway (SH1) from the Johnstone's Hill tunnels just south of Puhoi to a point north of Wellsford. 

From here the selected team and the NZTA will enter into contract negotiations. If these are successful, NZTA expects to award the PPP contract for the project by late 2016. The contract price will be confirmed at that point.

The motorway is expected to open to traffic in 2022, after six years of building. The concession contract will run over 25 years and  it is aimed to be opened for traffic by 2022.

Mr Gammie said:

“The next step will see the Transport Agency and the Northern Express Group enter into contract negotiations. Pending the successful completion of negotiations, we expect to award the PPP contract for the Pūhoi to Warkworth project by late 2016.  The contract price will be confirmed at that point.”