What is the total value of contingent liabilities arising from the Warkworth to Te Hana Project Agreement, if any, and how will those liabilities be recorded in the Financial Statements of the Government?

Answer

NZTA will include a PPP service concession liability on its balance sheet which is estimated to peak at $2.4-2.7 billion at the end of the construction period and reduce as Unitary Charges are paid over the operational period. This represents NZTA’s obligation to pay future Unitary Charges. As is standard practice for transport PPPs, the Crown has provided NZTA with an indemnity as a credit-support instrument that backs NZTA's payment obligations under the PPP Project Agreement. The proposed indemnity will be disclosed as a contingent liability in the Financial Statements of the Government.