Attachment 1 Infrastructure Priorities Programme Round 2 Submission.pdf

Title: Submit a proposal to the Infrastructure Priorities Programme (Round 2)
Organisation: Tauranga City Council
Reference: IPP-PR2-0003435  |  Submitted: 17/04/2025 12:06 pm  |  Submitted by: James
Woodward
Summary of information submitted
Application: Infrastructure Priorities Programme (IPP) assessment
Round one applications closed 20 December 2024. Results are expected to be
published in June 2025.
Round two applications close 17 April 2025. Results are expected to be published
in September 2025.
Round three opening date for applications is yet to be confirmed.
Page 1 - Introduction
IPP-PR2-0003435
Application overview
The Infrastructure Priorities Programme (IPP) is an independent and standardised
process to identify proposals and projects that are national y important, wil  meet New
Zealand’s strategic objectives, represent good value for money, and can be delivered.
Read more in our Introduction to the Infrastructure Priorities Programme.
When you submit a proposal to the IPP it is assessed by expert assessors at Te Waihanga
and reviewed by an expert panel. The criteria are standardised, so al  proposals are
reviewed independently and based on their own merit.
Al  proposals are considered against three key criteria:
Strategic alignment. Does a proposal support future infrastructure priorities
and/or improve existing infrastructure systems and networks that New Zealanders
need?

Value for money. Does a proposal provide value to New Zealand above the costs
required to deliver, operate, and maintain it?
Deliverability. Can a proposal be successful y implemented and operated over its
life?
You can submit proposals at three different stages:
Stage 1. You wil  have identified a problem or opportunity, but no solution has
been locked in.
Stage 2. You wil  have identified a problem or opportunity and have a range of
options to solve it. You'l  have a reasonable amount of information on most of
these solutions, including how much they wil  cost.
Stage 3. Your proposal is ready for investment. You’l  have a high level of maturity
in financial (e.g., costings), commercial, procurement, and governance planning.
What you need to apply
You shouldn’t need to collect any additional information beyond what would normal y
be included as part of good project planning.
Before starting your application, you wil  need to:
identify what stage you are applying at, and
confirm that you can answer al  the questions required for that stage.
To help applicants understand the information that is required at each stage, take look at
our application readiness checklist.
We encourage applicants to review the IPP assessment framework and the guidance on
the strategic alignment, value for money, and deliverability assessments, which set out
the IPP assessment process in detail.
To make an application you wil  need to:
attach the strategic and business case documents that support your initiative, and
provide us a page reference directing us to where we can find the answers to each
of the assessment questions in the document(s) you have provided.
Throughout this application, an * denotes a mandatory field and you wil  not be able to
submit your application until these fields have been completed.
Information classification
Information submitted to Te Waihanga is managed based on the classification under the
New Zealand Government's Information Security Classification System (Classification
System) and supporting legislation.
Most IPP applications are expected to be either 'Unclassified' or 'In confidence' with the
relevant endorsement, if appropriate.
Classification
Select a classification for information supplied in this IPP application. Please avoid
over-classifying. For more details refer to the following guidelines for the protective

security requirements classification system.
Unclassified
User collaboration and internal review of applications is supported
For applications from organisations, user account roles and permissions can be managed
by a Principal respondent at your organisation or by Te Waihanga staff. For each
application, there are three levels of access that can be granted to users affiliated with
your organisation.
Read - access to view content in the application form but unable to save changes
(al owing internal review of content)
Write and save - access to enter and edit submission content and save changes
(al owing collaboration on the submission, to avoid conflicts it's not recommended
to edit at the same time as another user)
Submit and delete - access to submit information to Te Waihanga and delete draft
submissions (only available to accounts that have a Respondent role)
Your assigned role for each IPP application from your organisation is available directly
under each application on your 'make a submission' page.
Further assistance and unique application identifiers
Each application that is started is provided a unique reference identifier. These identifiers
are shown in the top right of each application page. Use this identifier when seeking
further assistance or communicating with us about this application by using one of the
following methods.
Use [email address] to contact us with any questions relating to an
IPP application.
Use [email address] for help managing roles and permissions of user
accounts affiliated with your organisation in the Information Supply Platform (ISP).
Page 2 - Proposed infrastructure priority - initiative overview
IPP-PR2-0003435
Initiative summary
Tel us about the initiative that you are applying to have assessed within the
Infrastructure Priorities Programme.
Initiative name

The initiative name should be meaningful to al stakeholders (including the public) and
succinctly describe the proposed infrastructure priority, problem, or initiative.
Variable Road Pricing – Tauranga
Initiative description
The initiative description should summarise the nature and scope of the proposed
infrastructure priority, the activities required to solve the priority, and the infrastructure
assets and improvements to infrastructure services that would be delivered. Where
possible, also identify organisations that would support the application, or be involved in
delivery.
Tauranga’s roading congestion negatively impacts our local economy. The development of
adding roading capacity is costly and time-consuming, and as such the city needs a
combination of new roading infrastructure whilst also making better use of existing
infrastructure. The Urban Form +Transport Initiative (UFTI) prepared a programme
business case that sets out a recommended programme to plan for growth in Tauranga
and the Western Bay. The Recommended Programme, named Connected Centres,
encourages the uptake of alternative modes of transport, and use economic instruments to
influence travel choice.
In February 2025, the Western Bay of Plenty subregion collectively submitted a proposal
for inclusion in the Government’s City and Regional Deals programme. A reference to
Variable Road Pricing has also been included in the Western Bay of Plenty’s Regional Deal
Proposal, which sits in the context of provision of funding and financing tools to enable
growth to pay for growth).
Variable Road Pricing, also referred to as Time-of-use charging or congestion charging, can
help ease congestion by encouraging people to use our roads in the most productive way
possible, resulting in better use of the road network.

Time-of-use charging has been rolled out successfully in cities around the world, and the
government is currently preparing new legislation to enable such schemes. The draft
legislation seeks to enable local authorities, such as Tauranga City Council, to initiate the
development a time-of-use charging scheme. Tauranga City Council (TCC) is looking to
investigate the feasibility for a local scheme once legislation will be finalised.
In 2023 and 2024, Tauranga City Council, in conjunction with NZTA, undertook a proof-of-
concept variable road pricing study, titled SmartTrip. The SmartTrip study identified that
delay levels were likely to reduce by approximately 20% and vehicle-kilometres travelled
by 6% (BECA, Proof of Concept Study, 2023).
Tauranga City Council endorsed the following resolutions on 4 March 2024, that the
council:
• Proceeds to:
• pricing charges, the quality and available of alternative transport modes, location and
time of charge, equity concerns and wider network impact (particularly diversion impacts).
• Engage with NZTA-Waka Kotahi, the Ministry of Transport, and other interested
councils including Auckland Council / Auckland Transport to explore nationally consistent
approaches to road pricing.
• Includes a budget of $1.5m spread evenly over the first three years of the LTP (with

timing reviewed at the next Annual Plan) and requires staff to apply for any applicable
subsidy or external funding to reduce the cost to the ratepayer.
Given the subsequent work being undertaken at a national level, this budget has been
removed from the LTP for the time being, and will be reviewed by the legislative position is
clearer.
Changes are expected to the original SmartTrip findings, as the objectives of SmartTrip
were slightly different than the current draft legislation. Consultation has with the
community has been undertaken, however will be required again before a final decision
could be made to implement a scheme.
Subject to Council direction, the next steps would likely be along the lines of commencing a
scheme investigation and impact assessment in accordance with new legislation, in
partnership with Bay of Plenty Regional Council, Western Bay of Plenty District Council
and NZTA. The partnership will explore and assess scheme design options. To inform this
assessment an understanding of mitigation on local roads to avoid rat-running will be
determined, transport modelling will be undertaken, financial assessments on likely costs
and revenue streams, along with cost estimates will be carried out at a high level, and an
assessment of financial and time benefits to drivers and other road users will be
determined.
Attach an image file that may be used to profile this initiative
Attach a supporting PNG file with and image or graphic that may be used to profile this
initiative in our published material.
No attachment
Initiative identifiers
This information wil ensure we can integrate or match this initiative with other systems if
required.
Unique identifier (Internal)
Provide your organisation's unique internal identifier or reference code for this initiative.
N/A
Unique identifiers (External)
Provide the unique external identifiers or reference codes that other organisations use
for this initiative. If you have applied or completed a Risk Profile Assessment through the
Treasury, make sure the identifier is included.
Initiative classification

The following information wil  help us to categorise the initiative to support our
assessment process and reporting.
Infrastructure investment type
Select the main anticipated investment type. Would addressing the proposed
infrastructure priority result in an initiative to build new infrastructure, work to maintain,
renew, or improve existing infrastructure, work in response to an emergency, or non-
built initiatives that optimise the way infrastructure is operated or managed.
Examples of operational non-built initiatives may include:
Using pricing to manage demand for infrastructure services.
Applying new technology to increase value from existing infrastructure.
Using regulation and education to influence infrastructure demand.
Operational (incl. non-built)
Infrastructure sector - operational
Select the infrastructure sector that best indicates the main sector or service which this
operational non-built initiative wil  support. The list provided is a subset of sectors,
services, and categories.
Transport - Roads and paths - Mixed modal
Brief description
Describe in what way this initiative supports an operational non built solution. Is it
technology (software, hardware or engineering based), financial y based, policy or
education, project delivery improvements etc.
Variable road pricing is an operational, non-built solution that uses technology and financial
mechanisms to manage traffic demand without the need for new infrastructure. By
establishing tol  fees based on projected congestion levels, time of day, or vehicle type, it
encourages more efficient road use. The system relies on intel igent transport technologies
such as GPS, ANPR to monitor traffic conditions and enable future changes to tol  fees. This
helps reduce peak-hour congestion, improve travel reliability, and make better use of existing
road networks.
Beyond its technological foundation, variable pricing acts as a financial tool that internalises
the cost of congestion while generating revenue that can be reinvested in transport
infrastructure and services. It aligns with broader policy goals related to congestion
management, emissions reduction, sustainable transport and accessibility. Additional y,
public education and engagement play a key role in gaining user acceptance and supporting
long-term behavioural change. Overal , it offers a flexible, cost-effective alternative to road
expansion, delivering operational benefits with lower environmental and financial impact.
Initiative location

Region
Select the region from the drop-down list. You can select multiple regions where the
infrastructure initiative or assets wil span multiple regions.
Bay of Plenty
Location name
Please provide the name of the nearest location. This can be a suburb, town, or other
named place. For example "Waikare Gorge".
Tauranga City
Latitude
Latitudinal and longitudinal coordinates for your initiative are required for physical
infrastructure proposals. They can be sourced from websites such as
https://www.latlong.net. For horizontal infrastructure projects use a focal point or an
approximate middle location.
No response provided
Longitude
No response provided
Land and consents
Land requirement status
Select the option that best reflects the current situation for the access to any land
required for this initiative. Land or land access that is secured could be through a variety
of means including under existing ownership, leased, purchased, or with rights to
purchase.
No land required
Consenting status
Select the option that best reflects the current situation of the status of resource
consenting required for this initiative.
Consenting requirements are yet to be identified
Initiative leadership

Senior Responsible Officer (SRO)
Please enter the first and last name of the Senior Responsible Officer for the
infrastructure initiative if one has been assigned.
Christine Jones
Email
[email address]
Related initiatives
To provide context about the initiative outlined in this application, provide information
on any related initiatives and attach any additional documentation on Page 3. Select
'Add another' if there are multiple related initiatives.
Indicate if there are related initiatives
Indicate if there are any related initiatives, these include other initiatives that are or were:
in the same work programme,
pre-cursors to this initiative - including earlier business cases,
paral el to this initiative,
regional deal development,
dependencies of, or on, this initiative,
a constraint or risk for this initiative,
the result of this, or any other, initiatives being split or merged,
being initiated or delivered by other agencies.
Yes
Related initiative (1)
Initiative name
The related initiative name should clearly identify the initiative and how it is
commonly referenced.
Urban Form + Transport Initiative and the Transport System Plan
Initiative description
Briefly describe the related initiative including details of the relationship. For
example, this initiative is to implement the third stage of the related programme.
You can attach further documentaion to support an IPP application on the
following page.
The Urban Form + Transport Initiative (UFTI) is a collaborative project led by
SmartGrowth and NZTA, and involves Western Bay of Plenty District Council,
Tauranga City Council, the Bay of Plenty Regional Council, iwi, and community leads.

UFTI was an integrated land use and transport programme business case. The
recommended programme was called ‘Connected Centres’. The UFTI report includes a
‘key move’, which is to: “Investigate and introduce economic instruments to influence
travel choice (parking policies, tolling, congestion charging, freight mode choices)
within years 0-10 of the programme.” The need for the Study recognises that
different approaches to funding and financing to those currently available (e.g.
tolling) are likely to be required in the future to provide the amount of revenue
required to maintain and improve the land transport system and unlock development
opportunities and support intensification in Tauranga. Therefore, UFTI is a precursor
to the current VRP initiative. The Western Bay of Plenty’s Transport System Plan
(TSP) is the region’s overarching transport programme to deliver UFTI. Both UFTI and
the TSP stress the importance of mode choice and the uptake of public transport,
walking and cycling to the region moving in the context of the anticipated growth.
National Infrastructure Pipeline identifier
Provide the National Infrastructure Pipeline identifier for the related initiative. You
can search the National Infrastructure Pipeline on our website or Insights Platform.
No response provided
Related initiative (2)
Initiative name
The related initiative name should clearly identify the initiative and how it is
commonly referenced.
SmartTrip Variable Road Pricing Proof-of-Concept study
Initiative description
Briefly describe the related initiative including details of the relationship. For
example, this initiative is to implement the third stage of the related programme.
You can attach further documentaion to support an IPP application on the
following page.
The SmartTrip Variable Road Pricing concept is a result of Tauranga’s Proof-of-
Concept Road Pricing study, undertaken in 2023 and 2024. These studies have
indicated that a variable charge for all vehicle users for access to Tauranga’s main
transport could have a significant positive effect on Tauranga’s road journey times
and reliability, as well as generating revenue to reinvest in the local roading network.
Engagement with the local community in 2023 indicated limited levels of support,
which is consistent with international benchmarks.
In March 2024, Tauranga City Council resolved to further investigate key areas of
community feedback (received in 2023), and continued engagement with NZTA and
the Ministry of Transport to explore a nationally consistent approached to road
pricing. Council’s Long Term Plan (2024) includes a brief reference to the SmartTrip
investigations and decisions as well.
Further investigations were paused in late 2024 due to the announcement of new
legislation to be delivered by the Government to enable road pricing.
National Infrastructure Pipeline identifier

Provide the National Infrastructure Pipeline identifier for the related initiative. You
can search the National Infrastructure Pipeline on our website or Insights Platform.
No response provided
Related initiative (3)
Initiative name
The related initiative name should clearly identify the initiative and how it is
commonly referenced.
Public Transport Services & Infrastructure Business Case, Travel Demand
Management Programme, and Active Travel Business Cases
Initiative description
Briefly describe the related initiative including details of the relationship. For
example, this initiative is to implement the third stage of the related programme.
You can attach further documentaion to support an IPP application on the
following page.
In Tauranga, through the delivery of the Transport System Plan program, work has
started on several projects to improve the number of bus journeys, the reliability of
those journeys, the convenience and safety of active travel routes and more general
travel demand management measures.
The development of a Variable Road Pricing scheme for Tauranga (and potentially
across the Western Bay) would need to be complemented with increased transport
choices to give people realistic alternatives to driving at the busiest times of the day.
Most cities that have implemented a form of road pricing enable a number of
alternative options for drivers to consider changing their mode of transport or time of
their journeys. For example, when the City of Stockholm implemented variable
congestion charging in 2006 it also added 197 new buses, 16 new bus routes, 2,800
park-and-ride spaces, and built new bike/pedestrian infrastructure. As a result of the
Scheme, buses in Stockholm reported significant reduction in travel times, without the
investment in increasing the number bus lanes or infrastructure. In short, urban road
pricing has the potential to deliver higher frequencies of bus services at the same cost,
or similar frequencies at lower cost. The implementation of a Variable Road Pricing
scheme could therefore have significant cost savings to the Public Transport Services
& Infrastructure Business Case.
The above studies have set the scene for these requirements and investments, but
would need to be re-visited to determine applicability to reflect a specific VRP
Scheme during the Scheme assessment stage.
National Infrastructure Pipeline identifier
Provide the National Infrastructure Pipeline identifier for the related initiative. You
can search the National Infrastructure Pipeline on our website or Insights Platform.
No response provided
Page 3 - Application details

IPP-PR2-0003435
Assessment stage
There are three stages of assesment in the Infrastructure Priorities Programme.
Stage 1. You wil  have identified a problem or opportunity, but no solution has
been locked in.
Stage 2. You wil  have identified a problem or opportunity and have a range of
options to solve it. You'l  have a reasonable amount of information on most of
these solutions, including how much they wil  cost.
Stage 3. Your proposal is ready for investment. You’l  have a high level of maturity
in financial (e.g., costings), commercial, procurement, and governance planning.
Select the assessment stage for this application
The assesment stage you select wil  change the information we ask for in the remainder
of this application.
Stage 1 - Strategic assessment
Has this initiative been assessed previously through the IPP process?
Previous assessment includes both an assessment at an earlier stage, or at the same
assessment stage as this application.
No
Supporting documentation
Attach al  of the supporting documents for the initiative which forms the basis of your
application. On the following pages of this application form you wil  be asked to
reference these documents in your responses.  Ensure that as wel  as the relevant
business case for this stage, that previous stage business cases, risk documentation, cost
benefit documentation or any other documents which provide evidence to support your
application are included in the 'Additional support document' section below. Providing
this documentation now wil  streamline the triage and assessment work carried out by Te
Waihanga.
Attach a document that sets out the strategic case for assessment
Any additional documents that support your application can be added further below.
variable-road-pricing-wider-study.pdf
Last modified 2025-4-16 17:3:4 pm, file size 341.18 KB

Additional supporting document (10)
IPP Attachment I - TCC Our-Direction (adopted, 2022).pdf
Last modified 2025-4-17 9:52:9 am, file size 13.83 MB
Confirm application contacts
In addition the users assigned access to this application, provide names for a primary
and secondary contacts. If these people have not been assigned to the this application
(see the make a submission page) - please add their email address.
Primary contact
Please enter the first and last name of the primary contact for this IPP assessment
application. Any engagement and correspondence about this application, that is not
automatatical y sent to assigned users in the Information Supply Platform, wil be
directed to this person in the first instance.
Peter Siemensma
Email
[email address]
Secondary contact
Please enter the first and last name of the secondary contact for this IPP assessment
application.
Sarah Dove
Email
[email address]
Next stage for this initiative
If your proposal was to be endorsed by the relevant authoriser (e.g. Cabinet, Council),
provide indicative costs and timeframes for the next stage for progressing the proposal.
Next stage for progressing the proposal
Select the next expected stage to progress the proposed initiative if it were to proceed.
Indicative Business Case
Indicative stage start date

When would the next stage likely begin. This information wil  help us to generate
insights on potential demand for the market, including demand for professional services.
2027-07-01
Indicative stage end date
When would the next stage of the initiative be delivered.
2030-07-01
Estimated next stage cost ($m)
Enter the expected cost to proceed to the next stage as indicated above for this initiative
in mil ions. For example, "50" would be interpreted as $50 mil ion. If you are unsure you
can indicate your confidence level in the next field.
2
Confidence level for this cost estimate
Indicate the level of confidence in the cost to complete to the next stage of this initiative
indicated above.
Very low +/- 100% or greater
Low +/- 75%
Moderate +/- 50%
High +/- 25%
Very high +/- 10%
Low
Implementation of the proposed initiative
Provide indicative costs and timeframes for ful  implementaion of this initiative.
Indicative implementation start date
If this initiative were to proceed as proposed, when would implementation begin. This
information wil  help us to generate insights on potential demand for the market.
2030-07-01
Indicative implementation end date
When would implementation realistical y be expected to be completed given the start
date indicated above.
2035-07-01
Estimated total cost of initiative ($m)

Enter an indicative or expected total cost for the initiative in mil ions. For example, "50"
would be interpreted as $50 mil ion. If you are unsure you can indicate your confidence
level in the next field.
35
Confidence level for this cost estimate
Indicate the level of confidence in current costing of this initative. This selection should
reflect the rough order-of-magnitude range for the total cost given in Stage 1, and be
refined through Stages 2 and 3. Even a rough estimate in Stage 1 provides an indication
of the expected scale of the initiative.
Very low +/- 100% or greater
Low +/- 75%
Moderate +/- 50%
High +/- 25%
Very high +/- 10%
Low
Funding
Provide details of the funding approach for this initiative. Is it cost-efficient and
enduring, both to deliver the project and to ensure any infrastructure is properly
maintained in the long term so that its benefits can be achieved.
Funding status
Select the most appropriate option that reflects the current funding status of the entire
initiative.
Funding source to be confirmed
Funding source
Where are funds expected to come from to support this initiative. Select al options that
apply.
Central government dedicated funds (eg NLTF, Regional Infrastructure Fund)
Local government funding (including rates or asset sales)
User charges (eg fees and tolls)
Dedicated government funds
Select the governement funding programmes that are likely to be investigated.
National Land Transport Fund
Page 4 - Strategic alignment

IPP-PR2-0003435
Strategic alignment - Stage 1
Strategic alignment tests the extent to which a proposal supports future infrastructure
priorities and/or improves existing infrastructure systems and networks that New
Zealanders need.
Strategic alignment is demonstrated through a combination of the following elements:
1. a wel -defined problem or opportunity
2. contribution to wider strategic objectives or sector-level strategies
3. size of the problem or opportunity.
At Stage 1, strategic alignment is the core focus of the assessment. For more information
on the key elements of strategic alignment that we look at in our assessment process
and how they can be demonstrated in a proposal, read our Guide to Strategic Alignment
Assessments.
What is the problem or opportunity that this proposal seeks to
address?
Al  proposals should have a clearly defined problem (or opportunity) that they seek to
address, as this is a core foundation of a good business case. [S1]
Document reference
Provide a reference, including page numbers, to the relevant section of the attached
strategic case, business case, or other documents provided to support your response to
this question.
Variable Road Pricing Study Tauranga, Study Context, Proof-of-concept study
Brief description
Provide a brief response to the question.  Include information on changes made since the
supplied documentation was written.
Problem and Opportunities: Tauranga’s roading congestion is affecting journey times for
vehicles, freight and buses, and as such it negatively influences economic activity in the
region. The SmartTrip memo (referred above) summarises the wider strategic benefits of a
Variable Road Pricing scheme for the region, supporting efficient journeys, encouraging
mode shift, enabling urban growth, and generate a revenue to further improve the region’s
roading network. Significant funding streams are needed to address the most significant
issues facing the Western Bay of Plenty sub-region, in particular transport infrastructure.
SmartTrip’s Objectives were outlined as follows:
1. Deliver UFTI land use and land transport outcomes
2. Use the power of pricing as an effective transport investment planning lever, to improve
customer experiences specifically, and more generally land transport system performance,
land transport system outcomes, and economic productivity

3. Use pricing as a new additional funding tool to finance and deliver transport
infrastructure investments.
More specifically, the UFTI Recommended Programme will help to improve measurable
transport outcomes such as congestion levels, road safety, travel choice and reduced
private vehicle dependency, and environmental impacts (including CO2).
The SmartTrip investigations were paused due to the announcement of new legislation
being prepared by the government. The draft Time-of-Use charge bill is currently open for
consultation. It indicates that the objectives of a Time-of-use Scheme is primarily to
improve journey times and reliability. This is a narrower focus than anticipated through the
SmartTrip study, which had two key objectives: raising funds to invest in the local roading
network and improving journey times and reliability.
In February 2025, the Western Bay of Plenty subregion collectively submitted a proposal
for inclusion in the Government’s City and Regional Deals programme. The Proposal
includes a reference to VRP in the context of introducing new funding and financing tools
to enable growth to pay for growth; VRP is suggested as one of the tools that would need
to be considered.
Whilst benefits of a (Variable) Road Pricing Scheme will be citywide, the Regional Deal
Proposal focusses on enabling urban growth, as roading congestion is one of the key
reasons reducing and limiting the city’s abilities to enable new urban growth areas and
further intensification in existing urban areas. Better management of roading congestion
will open up capacity to enable more residents in both existing and new urban growth
areas.

Provide evidence to demonstrate the size of the problem
For example, the monetary cost of the problem, number of people affected, or
quantification of benefits. Proposals should provide compel ing evidence regarding the
magnitude of the problem (or opportunity) they seek to address. [S2]
Document reference
Provide a reference, including page numbers, to the relevant section of the attached
strategic case, business case, or other documents provided to support your response to
this question.
UFTI (attachment A), and TSP (Attachment B)
Brief description
Provide a brief response to the question. Include information on changes made since the
supplied documentation was written.
Traffic congestion is considered a bigger problem in Tauranga than in any other city in
New Zealand, as shown in the Ipsos Quality of Life Survey 2024 report. This project
surveyed a representative group of nearly 7,000 New Zealanders aged 18 years and over,
of which over 500 residents living within the boundaries of Tauranga City Council. This

survey indicates that 66% of the respondents consider traffic congestion a big problem.
These numbers are significantly higher than in any of the other eight surveyed cities.
whereas the average answers across the eight surveyed cities indicates that 38% consider
traffic congestion as a big problem. Notably, Tauranga’s respondents also indicate the
lowest use of public transport of the eight surveyed cities.
SmartTrip’s transport modelling predictions about network performance in the 2035 and
2048 scenario years, without and with VRP, assume that all UFTI projects have been fully-
funded and implemented as forecast (with the exception of public transport network and
service improvements brought forward from 2048 to 2035). The study modelling
demonstrates that some local land transport system KPIs are worse-off than in 2018 (e.g.
travel time delays), although there are improvements in Public Transport patronage and
cycle trips. This is consistent with what UFTI and TSP have previously identified and
recognises the focus and priorities set out in those pieces of work, which have been
strongly-guided by the 2018 and 2021 Government Policy Statements (e.g. focus on mode
shift; accessibility; safety). The ”with-VRP” analysis forecasts that transport road network
performance would improve compared to the “without-VRP” scenario over both years.
The SmartTrip study includes an economic evaluation. Whilst no scheme can fully
eliminate roading congestion, SmartTrip’s Proof-of-Concept report (BECA) indicates that a
Road Pricing Scheme in Tauranga would deliver $52m of transport benefits per year. This
$52m is made up of:
• $39m in private vehicle travel time, decongestion, and reliability benefits
• $4m in vehicle operating costs benefits
• $0.5m in Public Transport travel time benefits
• $2m in crash cost savings
• $5m in emissions reduction benefit
The BECA report (exec summary) further notes that vehicle-kilometres travelled would
reduce by 6%, and also encourages a shift towards public transport and active modes of
transport. Whilst not quantified in the report, an uptake of public transport and leading to
increased farebox-recovery for the city’s bus network, whilst an increased uptake of active
travel will lead to additional health benefits.
Which of the five strategic objectives in the New Zealand
Infrastructure Strategy does the proposal make a meaningful
contribution to?
Ideal y, infrastructure proposals should make a substantial contribution to the strategic
objectives in the New Zealand Infrastructure Strategy. Select al the strategic objectives
that your proposal makes a meaningful contribution to and describe the alignment in the
field below. [S3]
Enabling a net-zero carbon emissions New Zealand
Supporting towns and regions to flourish
Building attractive and inclusive cities

Document reference
Provide a reference, including page numbers, to the relevant section of the attached
strategic case, business case, or other documents provided to support your response to
this question.
SmartTrip proof-of-concept studies, see earlier question about Strategic Case
Brief description
Briefly describe the contribution the initiative wil make to support your selection. Include
information on changes made since the supplied documentation was written.
The UFTI Report outlines that Tauranga and the Western Bay is expected to be home for an
additional 200,000 residents, will see 95,000 new homes, and two million additional
transport movements per day, expected within the next 30 – 70 years. This indicates that,
without further action, congestion will only get worse in Tauranga.
A variable road pricing scheme will help Tauranga flourish by reducing congestion,
improving air quality, and creating safer, more accessible streets. By charging higher rates
during peak hours, it encourages off-peak travel and alternative transport use, easing
traffic flow and promoting sustainability. Businesses benefit from improved accessibility,
while Tauranga’s local economy would be more accessible, which helps businesses to thrive
with more visitors. Revenues of a Variable Road Pricing Scheme would, over time, help to
fund public transport, cycling infrastructure, and road improvements, enhancing mobility
for all and fostering social equity. Traffic congestion is also one of the key reasons why new
urban growth areas are often delayed, hence a Variable Road Pricing scheme to reduce
congestion can also help to allow new urban growth areas to be established and thus
helping to resolve Tauranga’s housing shortage.
Lower levels of congestion would also help to lower emissions, leading to better public
health, and smarter urban planning creates more vibrant, people-friendly spaces.
What strategic or asset management plan does this initiative
contribute to?
How does the proposal makes a meaningful contribution to agency or sector level
strategies. If the proposal does not make a substantial contribution to the New Zealand
Infrastructure Strategy, it should play a strong role in contributing to the sector’s strategic
objectives. [S4]
Document reference
Provide a reference, including page numbers, to the relevant section of the attached
strategic case, business case, or other documents provided to support your response to
this question.
Tauranga City Council’s ‘Our Direction’ (2022)
Brief description
Provide a brief response to the question. Include information on changes made since the
supplied documentation was written.

In addition to prior question response, A reduction in Vehicle Kilometres Travelled (VKT),
estimated by the VRP Study to be in the order of 6%, is likely to increase the lifespan of the
assets and marginally delay repairs and maintenance. Due to more efficient use of existing
roading infrastructure, a Variable Road Pricing scheme may help to postpone new roading
investments.
Tauranga’s “Our Direction” document presents the framework for Tauranga City Council’s
Strategic Direction. This framework includes five community outcomes.
Implementing a Variable Road Pricing Scheme can help to achieve Tauranga’s strategic
objectives by aligning transportation policy with broader social, environmental, and
economic goals.
1. We Are Inclusive: The scheme should ensure equitable access by all modes to
affordable and reliable mobility for all residents, including underserved communities. How
this is addressed in detail needs to be worked through in any further project development.
2. We value, protect and enhance the environment: The Study shows that the scheme
could discourage unnecessary car trips, reduce traffic emissions and air pollution and
support mode shift (e.g. towards modes like cycling, walking, and public transit) and
contribute to environmental improvement.
3. We have a well-planned city: Variable pricing aligns with urban planning by
managing traffic demand. It reduces congestion, allowing for better land use, and fosters a
more people-focused cityscape. The scheme encourages planning for connected, liveable
neighbourhoods with less dependency on private vehicles.
4. We can move around the city easily: By reducing peak-time congestion, the scheme
improves traffic flow and makes public transport more efficient. It ensures faster, smoother
travel for everyone, enhancing overall accessibility.
5. We support business and education: Congestion reduction improves delivery times for
businesses and access to educational institutions. A well-managed transportation network
fosters economic growth by making Tauranga more attractive to live, work and play.
Page 5 - Value for money
IPP-PR2-0003435
Value for Money - Stage 1
Value for money tests whether a given project is likely to provide value to society above
the costs required to deliver, operate, and maintain it.
At Stage 1, the assessment of value for money focuses on the problem definition. We
would like applicants to demonstrate they’ve investigated and considered that a
significant problem exists.
For more information on the key elements of our value for money assessment process
and how they can be demonstrated in a proposal, please refer to our Guide to Value for
Money Assessments.

Give an indication of work done to identify solutions to the problem
described in strategic alignment section
This could include research into previous attempts at a solution to the problem or case
studies of how other organisations have addressed similar problems. At this stage, a
proposal should demonstrate an awareness of a range of potential ways to address the
problem or opportunity that it has identified, without settling prematurely on a single
solution. [V1]
Document reference
Provide a reference, including page numbers, to the relevant section of the attached
strategic case, business case, or other documents provided to support your response to
this question.
SmartTrip VRP study, Beca Proof-of-Concept Report, Chapter 7 provides an economic
evaluation.
Brief description
Provide a brief response to the question. Include information on changes made since the
supplied documentation was written.
Whilst not a full benefit-cost ratio, the Study indicates that the yearly benefits will exceed
$52m every year (acknowledging the fees for users), whilst the cost to implement the
scheme are expected to be in the order of $35m (likely more due to the need to implement
additional measures on local roads, to e.g. reduce rat-running).
This indicates that after initial set-up, the scheme will generate a revenue to re-invest in
the region’s roading network. These figures are consistent with international examples.
In addition, the Study indicates that a scheme could raise a net revenue (after taking into
account cost to operate the scheme) could be in the order of $110m annually by 2035 to
be reinvested in the local road network and help to implement projects outlined the
Transport System Plan for Tauranga and the Western Bay. However, it should be noted that
the SmartTrip Proof of Concept study’s objective was to raise funding; the draft TOU
Charge Bill prioritises congestion reduction whilst raising funds to reinvest in the local
transport is likely to be a benefit rather than an objective.
Page 6 - Deliverability
IPP-PR2-0003435
Deliverability - Stage 1
Deliverability is a holistic assessment of whether a proposal is deliverable by the project’s
proponents and the construction industry. A deliverability assessment considers what an
investment proposal requires for successful delivery, the ability of project teams and

organisations to meet those requirements, the factors which can undermine a proposal,
and how those factors are managed.
At Stage 1, deliverability reviews wil  be focused on evaluating whether the submitter
sufficiently understands their investment intention. At Stage 1, deliverability is used as a
review criterion, rather than a formal assessment. The results of this review wil  not
influence the overal  project’s assessment outcome.
For more information on the key elements of our deliverability assessment process and
how they can be demonstrated in a proposal, please refer to our Guide to Deliverability
Assessments.
Outline the governance structure for the project
Are the governance arrangements the usual ones for the organisation or has a bespoke
governance arrangement been developed for the project? Describe divisions or individuals
within your organisation wil  be in key governance positions. This question al ows us to
identify what governance arrangements are in place. [D5]
Document reference
Provide a reference, including page numbers, to the relevant section of the attached
strategic case, business case, or other documents provided to support your response to
this question.
SmartTrip Variable Road Pricing Wider Study Context (uploaded as strategic case)
Brief description
Provide a brief response to the question.  Include information on changes made since the
supplied documentation was written.
The SmartTrip investigations were undertaken by Tauranga City Council and NZTA Waka
Kotahi, with the other SmartGrowth partners consenting to the study. The memo
summarises the governance for this previous study and it is anticipated that further
investigations will follow a similar governance structure.
Has your organisation undertaken a project like this before?
Briefly describe similar projects delivered and the outcomes. This question al ows us to
understand whether the organisation has a successful track record of delivering similar
projects. [D7]
Document reference
Provide a reference, including page numbers, to the relevant section of the attached
strategic case, business case, or other documents provided to support your response to
this question.
N/A
Brief description

Provide a brief response to the question.  Include information on changes made since the
supplied documentation was written.
There are no examples of VRP implemented in New Zealand yet.
Page 7 - Review and complete your application
IPP-PR2-0003435
Final submission checklist
Review this checklist prior to submitting your application for assessment.  By ensuring al
the items on the checklist have been appropriately actioned, Te Waihanga wil  be able to
run a streamlined process and reduce the overhead of requesting additional
information.
Checklist - all applications
The relevant Business case is attached (Page 3)
All other documents referred to in the application are attached (Page 3)
Supplementary documentation such as risk registers, cost benefit analysis has been
attached (Page 3)
The application clearly delineates infrastructure from non infrastructure including
equipment or rolling stock
Where documentation is provided in response to a questions relevant page number
references have been provided (Pages 4 to 6)
Current information on intentions to apply for upcoming Budget rounds has been
provided (Page 3)
Location details have been provided (Page 2)
Checklist - Stage 1
The application articulates a clearly defined problem or opportunity (question S1
Page 4)
The application provides a good understanding of the magnitude of the problem or
opportunity the proposal seeks to address (question S2 Page 4)
The application articulates a meaningful contribution to the 5 strategic objectives in
the New Zealand Infrastructure Strategy or a sector level Strategy (question S3 Page
4)

Applications from individuals
If this application is from an individual you can simply submit the application to send it
to Te Waihanga.
Applications on behalf of organisations
If your application is on behalf of an organisation you wil  you have two options
depending on the assigned permissions in relation to this specific application.
Read - the ability to view and not edit the application
Edit - the ability to populate and edit the application, and submit for internal
review.
Submit - the ability to complete the application by submitting to Te Waihanga.
For organisations there are two actions available to progress:
Send for internal review - wil  notify staff affiliated with your organisation who are
assigned to this specific application that it is ready for review (ie prior to
submission). You can see who is assigned on your 'make a submission' page.
Submit - wil  send your completed application to Te Waihanga for assessment.
Your Principal Respondent can manage roles, assignment, and access. Te Waihanga staff
can also support managing access.
Thank you and next steps
Thank you for your time preparing this submission. If our assessors have any further
questions in relation to your application, we'l  respond through this form and staff that
are assigned wil  be notified.