What handback standards and residual asset condition requirements apply when Warkworth to Te Hana is returned to NZTA in 2058, if any, and what remedies exist if those standards are not met, if any?

Answer

The Project Agreement includes detailed handback requirements that apply at the end of the concession period in 2058. These require Northway to return the asset to NZTA in a defined minimum condition, with specified residual service life requirements for different asset classes. Compliance is assessed through a series of independent condition surveys in the three years leading up to handback. Where the required standards are not met, Northway is required to carry out remedial works at its own cost so that the handback requirements are achieved before the asset is returned to NZTA. NZTA may also undertake the work itself and recover the costs from Northway. Examples of the specified residual service life requirements include: - Pavements: at least 40% of pavement to have 6 years’ remaining life and the remaining 60% having at least 3 years - Bridges, tunnels and other structures are to have a minimum of 75 years of remaining life - Natural and manmade earth-feature assets, for example embankments, are to have at least 50 years - Intelligent transport systems are to have a minimum of 5 years