Auckland City Centre Rail Link - Business Case Review - Ministry of ...

Auckland City Centre Rail Link Business Case Review | May 2011
Table 9: Alternative Evaluation Scenarios (NPV of direct transport benefits $m)
Discount rate of 8 percent 387
Discount rate of 6 percent 570
Discount rate of 4 percent 850
Evaluation over 30 years of operation 440
1.6 Compliance with the Economic Evaluation Manual (EEM)
Significant parts of the Business Case assessment were not compliant with the
procedures outlined in the NZTA‘s EEM for calculating transport benefits. Most of
these issues could not be resolved by the Review in the time available and therefore
the Review is also non-compliant. Nevertheless, any future assessment of the project
presented to government should comply with recommended procedures in the EEM.
1.7 Auckland Council and Auckland Transport position
As noted, Auckland Council and Auckland Transport have provided a Position on
Transport Related Patronage and Benefits. This is included in Appendix E.
Central government agencies note that the Auckland Council/Auckland Transport
policy case was presented during the final stages of the Review. Central government
agencies have not had time, or been provided with the background information, to
assess the range of technical issues raised by the position in detail.
Nevertheless, central government agencies note that some of the interventions
included in the position — particularly the additional park and ride and reconfiguration
of bus routes — could be used to increase the benefits from both the DM and the DS,
if included as part of a package. Therefore, it does not seem valid to attribute the
increased benefits to the CCRL only, as is apparently being proposed by the
Auckland Council/Auckland Transport policy case. This issue, and the practical basis
for the changed modelling assumptions which underpin the case, will need to be
explored and clarified in any future revision of the Business Case.
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