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What discount rate, discount period and base date were used to calculate the $3.649 billion net present value final project cost for the Warkworth to Te Hana public-private partnership announced on 30 July 2026?

Answered Question 34462 (2026)
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Asked by

Tangi Utikere

Member for Palmerston North · Labour Party

Question

  • What discount rate, discount period and base date were used to calculate the $3.649 billion net present value final project cost for the Warkworth to Te Hana public-private partnership announced on 30 July 2026?

Answered by

Hon Chris Bishop

Member for Hutt South · National Party · Minister of Transport

Answer

The discount rate used for the $3.649 billion NPV project cost estimate is 7.2%. The discount rate is consistent with that used to calculate the Public Sector Comparator (PSC) in the March 2025 Investment Case and is calculated according to the Treasury PPP Guidance. The discounting base date for the calculation is June 2024 which is also consistent with the PSC agreed by Cabinet in March 2025 and calculated in the January 2025 Investment Case for like-for-like comparison. The discount period is 32 years, covering costs during the 7-year construction phase and the 25-year operational phase.