The completion of Auckland’s regional rail electrification and the ordering of a fleet of new electric commuter trains could be delayed as the Govt signals it is not making any more money available for the project. Instead Transport Minister Steven Joyce has asked Ministry of Transport officials to look into how a Public Private Partnership could be used to fund a shortfall of around $400m in the cost of the $1bn project. “The use of public private partnerships can be a sensible way to procure this kind of expensive, long-life asset.”

Joyce’s announcement comes after months of evasive answers by the minister to the question of how revenue expected to be raised from the now axed regional fuel taxes to help pay for electrification was to be replaced. But ARC chairman, Mike Lee, says the concept of a PPP has been examined thoroughly by the ARC and rejected because of the higher costs it would impose. He says a private company would expect to make a return on its investment and this would be paid for by the ratepayer, taxpayer and the train users.

Lee is concerned the lack of a clear funding alternative to the regional fuel tax combined with the extra time taken to complete the PPP investigation will mean the ARC will not be able to call tenders this year for the supply of the fleet of 35 electric multiple unit commuter trains needed to operate services on the electrified rail lines. The ARC was hoping to have the electric trains in service by the 2011 Rugby World Cup but this is now in doubt.

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