Part 2: About the City Rail Link project

Governance of the City Rail Link project.

2.1
In this Part, we describe:

Summary

2.2
The first business case for the City Rail Link was prepared in 2010 but was not funded. However, the Government committed to preparing another business case jointly with the Council. The Government's commitment to this business case was dependent on growth in employment and the number of people who use the rail network in central Auckland.

2.3
In 2015, Auckland Transport prepared the City Rail Link Business Case 2015 (the business case). CRL Ltd was set up in 2017. At that time, the Sponsors jointly committed to investing $3.4 billion to deliver the CRL project. In 2019, the Sponsors increased their committed investment to $4.42 billion to widen the CRL project's scope (to include, for example, constructing nine-car platforms at three stations), fund the rising costs of construction, and increase contingency in the CRL project's budget.

2.4
Auckland Transport and KiwiRail must also deliver some wider network improvements to successfully complete the CRL project and integrate the City Rail Link into Auckland's existing transport network. These network improvements are budgeted to cost a further $1.11 billion.

2.5
Together, the CRL project and the wider network improvements will provide capacity for 27,000 passengers each hour during peak times.

2.6
The delivery partners need to work together to align and co-ordinate the design, construction, testing, and commissioning of their respective works in time for passenger services to start on Day 1.

2.7
The CRL project and its governance arrangements are complex. Several distinct arrangements support and oversee different aspects of the CRL project and provide the Sponsors with advice and assurance about the management of the work.

2.8
Auckland Transport and KiwiRail have set up separate joint governance arrangements over the wider network improvements.

2.9
However, to enable the City Rail Link to accommodate its maximum capacity of 54,000 passengers per hour by 2036, the Auckland rail network will need even more investment.

Planning for the City Rail Link started in 2010

2.10
In 2010, the first business case for the City Rail Link was prepared for KiwiRail and the Auckland Regional Transport Authority. In 2012/13, the Ministry of Transport completed a review of the business case. The review also involved the Treasury and Waka Kotahi New Zealand Transport Agency (Waka Kotahi).

2.11
In 2013, the Government committed to a joint business case with the Council for the City Rail Link. The CRL project was intended to begin in 2017 and start construction in 2020. The Government stated that it would consider an earlier start date if the rate of employment and number of people using the rail network in central Auckland increased faster than anticipated.

2.12
In 2015, Auckland Transport prepared another business case for the City Rail Link for the Council. This business case led to the Council allocating $2.5 billion to Auckland Transport to start early works for the City Rail Link.

2.13
In December 2015, Cabinet authorised the Ministers of Finance and Transport to enter into negotiations with the Council to formalise the Government's commitment to provide funding for the City Rail Link.

2.14
In 2016, the Government decided that it would establish CRL Ltd to deliver the CRL project and fund it equally with the Council. CRL Ltd was established on 1 July 2017.

What is a percentile value?

The percentile value (or P value) represents confidence that a project can be delivered within budget. It is based on an assessment of risks when the budget was set. The higher the P value, the greater the confidence that a project can be delivered within budget.

2.15
The Sponsors have committed to fund the CRL project with a percentile value of "P50". This means there is a 50% chance that CRL Ltd can deliver the CRL project within the committed funding and a 50% chance that it will cost more.

2.16
We understand that various considerations influenced the decision to fund the CRL project at P50. We were told that the Council was mindful of its debt levels. Funding the CRL project to a higher percentile value would have carried a risk that CRL Ltd would not need all the funding set aside for the CRL project. In that scenario, the unused funding would be unavailable for the Council's other projects.

2.17
The CRL project carries a specific fiscal risk for the Crown (as required under the Public Finance Act 1989).6 This recognises the likelihood that the Crown might need to commit further investment.

Significant benefits are expected from the City Rail Link

2.18
Auckland Transport's business case describes the City Rail Link as the Council's top priority project to help achieve the Government's aims for higher economic productivity and the Council's vision of Auckland as the world's most liveable city.

2.19
The business case sets out five objectives for the City Rail Link. They are to:

  • improve transport access in and around the city for a rapidly growing Auckland;
  • improve the efficiency and resilience of the transport network for urban Auckland;
  • significantly contribute to lifting and shaping the city's economic growth;
  • provide a sustainable transport solution that minimises environmental impacts; and
  • positively contribute to a liveable, vibrant, and safe city.

2.20
The business case estimated that, in monetary terms, the City Rail Link would deliver undiscounted benefits of about $13.2 billion over 40 years.7 Discounted benefits included:

  • $1.3 billion of travel time savings for public transport users (both existing and new);
  • $866 million of wider economic benefits – in particular, improved economic productivity from increased density of employment and improved accessibility (also referred to as agglomeration);
  • $317 million of benefits generated from increased reliability in travel times;
  • $136 million of travel time savings for road users and trucks;
  • $125 million of health benefits for new public transport users from walking to and from the train stations;
  • $94 million residual value of the infrastructure associated with the City Rail Link because it is a significant economic investment and will have a significantly longer life than the 40-year evaluation period;
  • $42 million of additional public transport user benefits associated with improving public transport infrastructure and services;
  • $14 million of additional time savings for road users from decongestion;
  • $10 million of vehicle operating cost-reduction benefits – from the improvements in travel speeds (for vehicles on the road) and fewer vehicles on the roads (because more people are taking the train); and
  • $6 million emission reduction benefits from the faster travel times and more people taking the train.

2.21
The 2015 business case has a cost-benefit ratio of 1.6.8 This means that every dollar spent is expected to produce $1.60 of benefits.

2.22
Although we have not audited the business case, we note that the costs of the wider network improvements were not included. However, we also understand that at least some of these works are required to realise the intended monetary and other benefits described in the business case.

2.23
The City Rail Link is intended to support Auckland's population and economic growth by making it easier for large numbers of people to move around the city on high-capacity trains.

2.24
Because trains will be frequent, passengers can ride at peak times without having to know timetables. CRL Ltd says that journey times will be faster – from the Mount Eden station, it will take three minutes to get to the Karangahape station, six minutes to Aotea station, and nine minutes to Britomart station.

2.25
Auckland Transport expects the City Rail Link to increase access between Auckland's central city and its outer areas. Providing effective transport choices that support population growth and reduce road congestion is expected to make affordable housing in outer areas more feasible.

2.26
Auckland Transport also expects the City Rail Link to stimulate investment and development around the stations at Aotea, Karangahape, and Mount Eden. This activity is expected to support higher economic productivity and planned economic and land-use changes. In turn, Auckland Transport expects these developments should further increase the number of people using the City Rail Link.

The City Rail Link project's scope has changed over time

2.27
In 2017, the Sponsors' joint committed investment in the CRL project was about $3.4 billion (at P50). At that time, the CRL project's scope involved:

  • building the City Rail Link;
  • building two new stations at Aotea and Karangahape and redeveloping the stations at Britomart and Mount Eden;
  • new train stabling and turn-back facilities at four locations on the rail network; and
  • new rail systems and information and communications technology to safely run modern rapid-transit passenger services.

2.28
In 2019, the Sponsors increased their joint committed investment in the CRL project to $4.42 billion (at P50). This was to:

  • increase the CRL project's scope by making the platforms at Aotea, Karangahape, and Mount Eden stations longer to allow for nine-car trains and adding a second entrance to Karangahape station to improve access for people with mobility impairments and improve station safety and resilience;9
  • fund the increased costs of construction; and
  • increase contingency in the CRL project's budget.

2.29
Further economic analysis was done on the increased scope and investment. That analysis concluded that the CRL project's increased scope still had a positive cost-benefit ratio of 1.39.

2.30
The Sponsors' officials also commissioned a separate economic analysis, which confirmed that the cost-benefit ratio would remain above 1.

2.31
As noted in paragraphs 1.24 and 2.22, we did not audit the business case, and we have not audited the updated analysis of benefits.

The CRL project has three broad phases

2.32
The CRL project’s first phase started in July 2017, when CRL Ltd was set up. In this first phase, CRL Ltd took over Auckland Transport’s early works and assumed control of related assets. Relevant employees were transferred to CRL Ltd to carry on with those works. CRL Ltd also set up the Link Alliance to finalise designs and deliver the main works. We discuss the Link Alliance in more detail in paragraphs 2.80-2.86

2.33
The first phase ended in October 2020, when the Link Alliance signed the contracts to build the main works.

2.34
The main works that the Link Alliance will deliver currently make up about $2.9 billion (about 68%) of the total funding the Sponsors have committed to the CRL project so far. The main works include building the tunnels and stations and putting in the rail systems.

2.35
The CRL project's second phase is the main delivery phase. This phase started in October 2020 and will end when the main works have been completed.

2.36
The third phase is the testing and commissioning phase, which includes operational readiness testing. In this phase, agencies will need to ensure that the rail systems (such as signalling and life safety systems) work as planned.

2.37
Auckland Transport, KiwiRail, and Auckland Transport's contracted rail operator will do most of the testing and commissioning work. Auckland Transport and KiwiRail will also need to carry out trial operations and training as part of the CRL project. CRL Ltd will need to ensure that pre-determined project completion requirements are satisfied in agreement with the Sponsors.

Other agencies must deliver wider network improvements

2.38
Cabinet recognised that wider network improvements were needed for Day 1 but decided not to include them in the CRL project's scope. Instead, Auckland Transport and KiwiRail are responsible for resourcing and delivering the wider network improvements.

2.39
The wider network improvements are currently budgeted at about $1.11 billion. This brings the total budget for the works needed for Day 1 to about $5.53 billion.

2.40
Figure 2 gives a high-level description of the works needed for Day 1, their budgeted costs, funding sources, and the organisations responsible for delivering them. The improvements include removing level crossings, resilience and asset maintenance programmes, and increasing the number of trains.

Figure 2
The wider network improvements needed for Day 1, as of June 2021

The wider network improvements are currently estimated to cost about $1.11 billion. CRL Ltd is responsible for the CRL project, which is funded by the Crown and the Council through the Auckland Transport Alignment Project at an estimated cost of $4.42 billion (net).* This brings the Crown and the Council's total investment for the works needed for Day 1 to about $5.53 billion.

Funding source Responsible organisations High-level description Estimated costs ($million)
The Crown and the Council through the Auckland Transport Alignment Project Auckland Transport New trains to maximise operation 404
Level crossing removal 220
Maintenance, operation, and renewals 9
Roadside projects 7
National Land Transport Fund** KiwiRail Infrastructure package – Additional traction feed (West) 57
Resilience and asset maintenance programme – Integrated rail management centre and emergency management systems 36
Resilience and asset maintenance programme – Infill signalling 15
Infrastructure package – Electronic train control system Level 2 4
New Zealand Upgrade Programme*** KiwiRail Wiri to Quay Park upgrade 318†
Auckland Council CRL Ltd Urban realm improvements†† 40
Subtotal for the wider network improvements 1110

Sources: CRL Ltd, Auckland Transport, Ministry of Transport, KiwiRail, The New Zealand Upgrade Programme: Update on Programme Options (CAB-21-MIN-0192), the Auckland Transport Alignment Project 2021-31 Investment Programme (12 March 2021), KiwiRail's Rail Network Investment Programme (June 2021), and the Auckland Regional Land Transport Plan 2021-31 (June 2021).

Notes:

* CRL Ltd's budget also relies on revenue that will likely come from other public organisations and from sales of land around the stations. This revenue is extra to the Sponsors' investment in the CRL project. We do not detail third-party revenue because some of the information is commercially sensitive until the Crown and the Council have decided what they will use the land for and sell the land.

** The National Land Transport Fund is revenue collected from fuel excise duty, road user charges, vehicle and driver registration and licensing, state highway property disposal and leasing, and road tolling. These funds are used to pay for investment in land transport activities under the National Land Transport Programme.

*** The Government announced the New Zealand Upgrade Programme in January 2020. It is a $12 billion infrastructure investment programme that includes investments in roads, rail, hospitals, and schools. In 2021, the Government increased the Programme's funding to about $14 billion.

† The Auckland Transport Alignment Project Investment Programme 2021-31, released on 12 March 2021, committed $315 million for the Wiri to Quay Park upgrade. In May 2021, Cabinet approved $318 million for it. In June 2021, the Rail Network Investment Programme stated that the upgrade's budget is $317.6 million.

†† "Urban realm" refers to the publicly accessible spaces between buildings in an urban environment. The urban realm encompasses streets, squares, station entrances, and laneways.

2.41
The delivery partners need to align and co-ordinate the design, construction, testing, and commissioning of their respective works to effectively integrate them into the existing transport network in Auckland.

2.42
Their assets, technology, and systems need to be compatible so the transport network can be safely, effectively, and efficiently run after the CRL project is completed.

2.43
To successfully complete the CRL project, the delivery partners need to:

  • deliver their works on schedule and in the correct sequence to keep the CRL project on time and cause the least practicable disruption to the public and businesses during construction;
  • complete the works to a standard that allows Waka Kotahi to issue the licences the rail network needs to operate;10 and
  • plan how they will transition the new assets that CRL Ltd will deliver to the existing network and operations, which includes addressing how the assets will be accounted for in the financial statements of the Council, Auckland Transport, and KiwiRail.

2.44
Additional investment in the wider Auckland rail network will also be needed to enable the City Rail Link to reach its maximum capacity by 2036.

The Auckland Rail Network Development Programme

2.45
The works that are needed to fully realise the City Rail Link's benefits are an important part of the Auckland Rail Network Development Programme.

2.46
The Auckland Rail Network Development Programme is an indicative infrastructure plan that aims to bring the rail transport network up to a modern metropolitan standard that will improve the efficiency and reliability of freight and passenger train services by 2045.

2.47
The Auckland Rail Network Development Programme's objective is to provide the needed rail capacity to serve Auckland's future needs and help achieve Auckland's urban development objectives. The rail network needs to be modernised to support the additional services that will be introduced when the City Rail Link starts operating.

2.48
The Auckland Rail Network Development Programme includes currently funded projects and future projects in the Auckland Transport Alignment Project. It aims to deliver all the upgrade work as one programme rather than as individual projects.

2.49
The Boards of Auckland Transport and KiwiRail are responsible for governing the projects that make up the Auckland Rail Network Development Programme. Although the CRL project is also part of the Auckland Rail Network Development Programme, its governance arrangements are separate.

2.50
When we finalised our report, funding for the Auckland Rail Network Development Programme was yet to be confirmed. KiwiRail has been funded to plan the Auckland Rail Network Development Programme and to prepare its business case. Preparing the business case will help KiwiRail to clarify the works, set priorities, and further refine estimates of costs.

The three steps of investment in the wider Auckland rail network

2.51
There are three steps of investment needed for the City Rail Link to achieve maximum passenger capacity by 2036. All works associated with the three steps are part of the Auckland Rail Network Development Programme.

2.52
For step 1, both the CRL project and the wider network improvements summarised in Figure 2 need to be completed. These works will provide capacity for 27,000 passengers each hour during peak times.

2.53
Auckland Transport and KiwiRail are also progressing other works alongside the wider network improvements required to integrate the City Rail Link. Examples include three new stations at Drury and the Papakura to Pukekohe upgrade and electrification. KiwiRail plans to complete these works to coincide with Day 1, but they do not need to be completed for Day 1 to be successful.

2.54
Step 2 involves new trains to increase frequency and capacity, introducing a fourth main line between Wiri and Westfield, upgrading the Onehunga line to enable more and longer trains, and upgrading signalling systems and crossings.

2.55
These improvements will support the more frequent and longer trains that are needed to carry 40,500 passengers through the City Rail Link each hour during peak times.

2.56
Step 3 involves extra main lines south of Wiri. These will enable increases in passenger services, including introducing limited-stop services. Auckland Transport might also need more railway vehicles.

2.57
These improvements will enable even more frequent trains. This will allow the rail network's maximum passenger capacity to gradually increase to 54,000 passengers through the City Rail Link each hour during peak times.

2.58
In August 2020, Auckland Transport and KiwiRail estimated that they would need to invest a further $7.5 billion to deliver steps 2 and 3. However, the timing of steps 2 and 3 depends on the increase in passenger demand and how Auckland Transport decides to cater for it.

The City Rail Link project's governance arrangements are complex

2.59
The CRL project is made up of nine distinct packages of work that involve several contractors and contract types. There are several distinct governance arrangements designed to support and oversee all the different parts of the CRL project and provide advice and assurance about the work's management to the Sponsors.

2.60
Figure 3 sets out the governance arrangements for the CRL project. We assessed the effectiveness of these arrangements, except for the aspects described in paragraph 1.24.

Figure 3
Governance arrangements for the City Rail Link project

Figure 3 shows the reporting relationships between the groups governing and managing the City Rail Link project.

Note: Auckland Transport and KiwiRail staff provide technical and operational support to the CRL project. For example, they are members of various working groups related to the Link Alliance, such as the Project Control Group (shown on the chart above), the Technical Control Group, Rail Safety Case Working Group, and Operational Readiness Management Group.

CRL Ltd also has a client-contractor relationship with firms delivering those works that are outside the Link Alliance's scope.

2.61
Auckland Transport and KiwiRail have set up separate arrangements to govern the Auckland Rail Network Development Programme. This includes the wider network improvements that Auckland Transport and KiwiRail need to deliver to complete the CRL project, but do not include the CRL project.

The Sponsors' role is clearly defined

2.62
The Crown and the Council, in their roles as both the CRL project's Sponsors and as shareholders in CRL Ltd, agreed to work together by consensus. They defined their role as Sponsors as:

  • setting the CRL project's scope and providing funding and oversight;
  • approving significant strategic decisions for the CRL project; and
  • ensuring that CRL Ltd delivers the CRL project as the Sponsors expect.11

2.63
The Sponsors are not responsible for detailed project decisions. These are the responsibility of CRL Ltd, the Link Alliance, and other contractors.

The Sponsors work together through two officials' groups

2.64
The Sponsors agreed that they would engage with the CRL project primarily through two officials' groups – the Sponsors' Forum and the Joint Sponsors Team.

2.65
These groups do not report to the Sponsors directly, but provide advice through the usual channels that the Ministry of Transport, the Treasury, and the Council officials use for reporting to the Ministers and the Council's governing body.

2.66
The Sponsors' Forum's terms of reference define it as the highest-level officials' forum for discussing and co-ordinating issues about the City Rail Link and for assisting the Sponsors to make decisions about those issues. Its role includes governing the Sponsors' investment in the City Rail Link so that the CRL project realises its benefits.

2.67
The Sponsors' Forum includes a mix of senior officials from the agencies that are working on the Sponsors' behalf. Since June 2020, the Sponsors' Forum has consisted of two officials from the Council (including an executive team member) and an official from the Treasury, and a deputy chief executive from the Ministry of Transport.

2.68
The Joint Sponsors Team acts as the secretariat for the Sponsors' Forum. Its terms of reference describe its core role as ensuring that the Sponsors have enough information for all matters needing "their review, approval, or consent".

2.69
The Joint Sponsors Team also helps to facilitate the best possible outcomes of the Sponsors' investment in the CRL project through:

  • administering the Project Delivery Agreement and the Sponsors' Agreement;12
  • facilitating co-ordination between agencies and between the Sponsors; and
  • supporting communication and the exchange of information between the Sponsors and CRL Ltd.

2.70
The Joint Sponsors Team has four main functions. These functions are to advise and support the Sponsors on matters about:

  • the Sponsors' governance;
  • the Sponsors' approvals for certain matters;
  • assurance and monitoring; and
  • policy and integration.

2.71
Up to six representatives from the Crown and the Council make up the core membership of the Joint Sponsors Team. Other staff can be seconded into the team or attend meetings as needed.

2.72
The Sponsors have contracted TSA Management to be their Assurance Manager.13 TSA Management's role is to provide independent expert advice to the Joint Sponsors Team on risks and on whether CRL Ltd is delivering the CRL project as expected. The Assurance Manager attends the Joint Sponsors Team's meetings.

2.73
The chairperson of the Joint Sponsors Team acts as the Sponsors' Representative and the main liaison with CRL Ltd.14 Officials who are members of the Joint Sponsors Team or Sponsors' Forum can also attend meetings of the Delivery Partner Steering Committee (see paragraphs 2.77-2.79) as observers or fill in for an absent committee member.

The Board of CRL Ltd has a clear role

2.74
The CRL Ltd Board is responsible for the CRL project and CRL Ltd's day-to-day governance. It has five members – the chairperson and four directors.

2.75
The CRL Ltd Board governs, directs, and supervises CRL Ltd. CRL Ltd's objectives are to manage, deliver, and complete the CRL project as set out in the Project Delivery Agreement.

2.76
We discuss the Board's role in more detail in Part 3.

The Delivery Partner Steering Committee supports operational decision-making

2.77
In 2019, the Delivery Partner Steering Committee was set up to provide a forum for the agencies that are responsible for the CRL project and the wider network improvements. Its role includes:

  • ensuring that the delivery partners recognise the interdependencies between their works;
  • integrating the CRL project with the wider network improvements; and
  • resolving matters referred by the Project Control Group.

2.78
The Delivery Partner Steering Committee makes decisions by consensus. Its members are the chief executives of the delivery partners and the Council. KiwiRail's Chief Operating Officer for Capital Projects and Asset Development represents their chief executive.

2.79
A Crown representative (from either the Ministry of Transport or the Treasury) is also a member. During our audit, the Crown representative was the Deputy Chief Executive, System Performance and Governance, at the Ministry of Transport.15

The Link Alliance works through a Project Alliance Board

2.80
The Link Alliance is responsible for delivering the CRL project's main works (see paragraphs 2.32-2.35). Looking at the Link Alliance and associated governance arrangements were not within scope of our audit because they involve organisations that are not public entities. However, we note that the Link Alliance adds another layer of complexity to the CRL project.

2.81
Alliances are a form of collaborative procurement where parties work together to deliver projects and share project risks and rewards. They are sometimes used for highly complex or large infrastructure projects that would be difficult to effectively scope, price, and deliver under a more traditional delivery model.

2.82
Alliances can enable innovation and improved risk management because parties can work together to solve problems without needing to renegotiate the contract with the principal. However, the downsides of an alliance can be that they do not always offer certainty on costs and, if things go wrong, can lead to protracted negotiations about cost sharing.

2.83
The Link Alliance has a Project Alliance Board. The Project Alliance Board's role is to:

  • provide leadership for the Link Alliance;
  • set policy and strategic direction for the Link Alliance;
  • issue directions, approvals, and make decisions about its scope of works;
  • resolve any commercial issues; and
  • co-ordinate between the Link Alliance participants, Auckland Transport, and KiwiRail.

2.84
The Project Alliance Board must vote on its decisions, and all decisions must be unanimous.

2.85
Auckland Transport and KiwiRail each have representatives on the Project Alliance Board because they will be the assets' eventual owners and operators. The rest of the Project Alliance Board consists of senior representatives from members of the Link Alliance. These are:

  • CRL Ltd;
  • AECOM New Zealand Limited;
  • Downer New Zealand Limited;
  • Soletanche Bachy International (NZ) Limited;
  • Tonkin & Taylor Limited;
  • Vinci Construction Grands Projets S.A.S. (registered in New Zealand as HEB Construction Limited); and
  • WSP New Zealand Limited.

2.86
When we refer to the Link Alliance, we also include the Project Alliance Board.

There is joint governance for continuing network development

2.87
In 2022, Auckland Transport and KiwiRail set up a Joint Governance Group to provide governance over the works that sit under the Auckland Rail Network Development Programme. This includes the wider network improvements that Auckland Transport and KiwiRail need to deliver for Day 1 and the other works, such as the three new stations at Drury. However, it excludes the CRL project, which is CRL Ltd's responsibility.

2.88
The Joint Governance Group will oversee and direct the various above-ground and underground rail programmes. This includes enabling, co-ordinating, and optimising the delivery of current projects and future works outside of the CRL project.

2.89
Auckland Transport and KiwiRail are members of the Joint Governance Group.

2.90
The Auckland Rail Network Development Programme's Joint Governance Group has no direct relationship with the CRL project's governance arrangements.

6: The Treasury (2021), Budget Economic and Fiscal Update, page 74, treasury.govt.nz.

7: These are gross undiscounted benefits based on a medium growth scenario. Discounted benefits were estimated at $2.9 billion. These estimates are now likely to be out of date. For example, benefits were estimated based on the City Rail Link starting operations in 2023.

8: The cost-benefit ratio was calculated by dividing the discounted benefits by the discounted costs. The business case calculated discounted benefits as $2,889 million and discounted costs as $1,853 million, giving a cost-benefit ratio of 1.6.

9: The number of people using public transport had increased faster than Auckland Transport expected. Auckland Transport considered that it was more efficient to extend the platforms during the CRL project rather than afterwards.

10: Organisations need licences to operate a railway. Waka Kotahi can issue a range of licences, including for owners, operators, access providers, premise owners, premise managers, and maintenance.

11: Cabinet paper (2017), Establishment of City Rail Link Limited, page 4.

12: The Project Delivery Agreement sets out the processes for providing the Sponsors with assurance on the CRL project's delivery, the key delivery objectives, and other terms and conditions that CRL Ltd is required to meet to deliver the CRL project. The agreement also sets out the procedures for altering the CRL project's scope. The Sponsors' Agreement sets out the arrangements between the Sponsors for the CRL project's governance and their relationship as co-Sponsors.

13: TSA Management was formerly known as Advisian.

14: During our audit, the Director, Infrastructure and Environmental Services at Auckland Council was the Sponsors' Representative and the main liaison with CRL Ltd.

15: A Treasury official attends meetings as an observer. If a Treasury official were a member of the Delivery Partner Steering Committee, then a Ministry of Transport official would attend the meetings as an observer.