What refund or refund-guarantee arrangements apply under the Cook Strait ferry shipbuilding contract if it is terminated before or during construction of the vessels, if any?

Answer

This information was proactively released on 11 March 2026. Treasury advised that a Crown guarantee was deemed the most effective solution to secure the shipyard deal. A guarantee was provided and to the extent it is possible to release information, we have done so here: https://www.treasury.govt.nz/sites/default/files/2026-03/frwp-2025-2575-5263332.pdf Key details have been released which include a requirement for the shipyard to obtain a refund guarantee from a reputable bank, allowing Ferry Holdings the right to terminate the contract and recoup funds in the event of significant delivery delays, failure to meet specifications, or sanctions. There are also penalties for non-delivery and liquidated damages for late delivery or performance shortfalls.