The process of building light rail, or modern trams, in Auckland will drag on until next year with more work to be done on deciding who will deliver the multi-billion dollar project.
Transport Minister Phi Twyford today said the Government has chosen a consortium led by the New Zealand Super Fund and the NZ Transport Agency as the preferred delivery partners.
"This process will take up to six months and will mean we won't have spades in the ground in 2020," said Twyford, who did not say when work would begin.
Twyford was present with Prime Minister Jacinda Ardern when she made an election promise in 2017 to build light rail from the CBD to Mt Roskill within four years, followed by light rail from Mt Roskill to the airport and to Westgate in West Auckland within 10 years.
Labour later said it would extend the western line a further 9km to Kumeu.
In April this year, Twyford said the Government might have to scale back its light rail programme for Auckland by scrapping a line from the city centre to West Auckland.
NZ Infra, a joint venture between the New Zealand Super Fund and Canada's CDPQ Infra group, made an unsolicited bid to the Government in May last year to build, finance and operate light rail in Auckland.
Twyford sought further advice from the Ministry of Transport and Treasury on this proposal.
Around the same time, NZTA was given the job of setting up a process to procure, finance and deliver light rail.
Both Ardern and Twyford have said light rail would be a game-changer for Auckland.
"It will be a magnet for private investment in urban renewal and will be able to carry 11,000 commuters per hour – the equivalent of four lanes of motorway," Twyford said.
He said what NZ Infra is proposing has never been considered before in New Zealand, based on a public-public investment model. This includes co-designing the asset with the Government and its partners, with the majority of financing and risk transferred to NZ Infra.
The Government has set aside $1.8 billion of seed funding on the project, costing at least $6b.
"There are significant differences in how the two options would be financed and delivered. The NZTA is exploring a range of procurement, financing and delivery models, including alliances and public-private partnerships, and will continue to develop these," Twyford said.