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Annual Report of the Treasury for the Year Ended 30 June 2016

Multi-category Appropriations

Greater Christchurch Anchor Projects MCA

What is intended to be achieved with this appropriation

This appropriation is intended to achieve the management of anchor projects and divestment of Crown-owned land in Christchurch.

In April 2016, CERA was disestablished. This appropriation enables the Crown's anchor project construction programme in Christchurch to continue under the management of a new fully Crown-owned company, Ōtākaro Limited.

What was achieved with this appropriation and each of its categories

Ōtākaro Limited was incorporated under Schedule 4A of the Public Finance Act 1989 in February 2016, and was fully operational in time to receive the transferred Anchor Projects Programme prior to CERA's disestablishment in April. A Transfer Agreement was entered into on 15 April 2016, under which the Crown agreed to transfer the land and assets associated with the anchor projects to Ōtākaro Limited. The Crown also agreed to provide the company with initial working capital, and to provide ongoing funding for the company's operations. The appropriations for each anchor project, previously established in Vote Canterbury Earthquake Recovery, were transferred to Vote Finance as set out below. Funds can be drawn down by the company under a Project Funding Agreement with the Crown.

In the period covered by this report, Ōtākaro Limited has still been in its establishment phase. It has successfully assumed responsibility for the anchor project construction programme and helped ensure business continuity during the transfer. Notably, the company has assisted the Crown to make changes to the procurement approach for the Christchurch Convention Centre project. As a Schedule 4A company, Ōtākaro Limited is required to produce a Statement of Intent and a Statement of Performance Expectations and to report on its performance in its Annual Report. This includes reporting on its performance in the construction and management of the anchor projects financed from this appropriation. The first Annual Report, covering the period between establishment and 30 June 2016, will be available in November 2016. Shareholding Ministers have agreed that the first Statement of Intent and Statement of Performance Expectations should be provided in draft to Ministers by 1 October 2016.

Performance measure Target for
2015/16
Performance for 2015/16 Forecast for 2016/17
Payments made in respect of Greater Christchurch Anchor Projects are made in accordance with the terms and conditions of the relevant funding agreements and agreed timelines. Achieved Achieved Achieved

Christchurch Bus Interchange and Associated Transport Infrastructure - Operating

     
Payments are made in line with the terms and conditions of the funding agreement. Achieved Achieved Achieved

Christchurch Convention Centre – Operating

     
The project will be progressed in line with government decisions and agreed project timelines. Achieved Achieved Achieved

Christchurch Stadium – Operating

     
The project will be progressed in line with government decisions and agreed project timelines. Achieved Achieved Achieved

Earthquake Memorial – Operating

     
The project will be progressed in line with the agreed project timelines. Achieved Achieved Achieved

Metro Sports Facility – Operating

     
The project will be progressed in line with the agreed project timelines. Achieved Achieved Achieved

Pre-development Holding Costs – Operating

     
Land is managed in accordance with the Crown's commercial and regeneration interests. Achieved Achieved Achieved

Procurement of Land and Assets – Operating

     
Land and assets are acquired and made ready in accordance with project outcomes and timelines. Achieved Achieved Achieved

Public Space – Operating

     
Projects are progressed in line with the agreed project timelines. Achieved Achieved Achieved

Christchurch Bus Interchange and Associated Transport Infrastructure – Capital

     
Expenditure is in line with the agreed project timelines. Achieved Achieved Achieved

Christchurch Convention Centre – Capital

     
Payments to Ōtākaro for capital expenditure are made in line with the terms and conditions of the funding agreement. Achieved Achieved Achieved

Earthquake Memorial – Capital

     
Expenditure is in line with the agreed project timelines. Achieved Achieved Achieved

Land and Asset Acquisition – Capital

     
Payments to Ōtākaro for capital expenditure are made in line with the terms and conditions of the funding agreement. Achieved Achieved Achieved

Metro Sports Facility – Capital

     
Payments to Ōtākaro for capital expenditure are made in line with the terms and conditions of the funding agreement. Achieved Achieved Achieved

Public Space – Capital

     
Expenditure is in line with the agreed project timelines. Achieved Achieved Achieved
2015
Actual
$000
Non-departmental 2016
Actual
$000
2016
Main Estimates
$000
2016
Supp. Estimates
$000
2017 Unaudited Forecast
as per BEFU 2016
$000
- Expenses and capital expenditure 50,250 - 440,417 203,887
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