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Does NZTA's $474.2 million contract with Cubic include performance bonds or parent company guarantees sufficient to cover the cost of retendering and transitioning to an alternative provider, if so, what is the value of those securities? and 2 other questions

Answered 10417, 10418, 10423 (2026)
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Asked by

Tangi Utikere

Member for Palmerston North · Labour Party

Questions

  • 10417

    Does NZTA's $474.2 million contract with Cubic include performance bonds or parent company guarantees sufficient to cover the cost of retendering and transitioning to an alternative provider, if so, what is the value of those securities?

  • 10418

    What financial performance thresholds or credit rating triggers, if any, are included in NZTA's contract with Cubic that would allow NZTA to terminate or renegotiate the contract?

  • 10423

    What contractual protections does NZTA have in place, if any, to ensure delivery of the National Ticketing System if Cubic Corporation enters insolvency or is unable to meet its obligations under the $474.2 million contract?

Answered by

Hon Chris Bishop

Member for Hutt South · National Party · Minister of Transport

Answer

In accordance with Standing Orders, releasing this information would be likely to prejudice the commercial position of the Crown agency involved, and harm its ability to undertake negotiations. However, I am advised by the NZ Transport Agency Waka Kotahi (NZTA) that the contract with Cubic contains a range of clauses to provide assurance for both parties, and that the NZTA has utilised the terms of the contract.