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What indexation applies to the Unitary Charge payments for Warkworth to Te Hana, if any, and what, if anything, is the Crown's exposure if inflation exceeds the assumptions used at financial close?

Answered Question 34442 (2026)
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Asked by

Tangi Utikere

Member for Palmerston North · Labour Party

Question

  • What indexation applies to the Unitary Charge payments for Warkworth to Te Hana, if any, and what, if anything, is the Crown's exposure if inflation exceeds the assumptions used at financial close?

Answered by

Hon Chris Bishop

Member for Hutt South · National Party · Minister of Transport

Answer

The Unitary Charge is partly indexed. It comprises an unindexable element and an indexable element. The indexable element is adjusted using a combination of indices, such as CPI, the Labour Cost Index (LCI), the NZTA Network Outcomes Index (NZTAnoi) and NZTA bitumen-related index components (NZTAnoib). If inflation in these indices exceeds the assumptions at financial close, NZTA's exposure is limited to the indexed components being adjusted in accordance with the agreed contractual indexation formulas.