CRL Statement of Performance Expectations 2024-2025
City Rail Link Limited Statement of Performance Expectations for Financial Year 2024 – 2025
Te Waihorotiu
Parnell
Grafton
Statement of Responsibility
City Rail Link Ltd (CRL Ltd) is responsible for the statements contained in this document, including the appropriateness of the business assumptions underlying them. CRL Ltd is also responsible for internal control systems that provide reasonable assurance as to the integrity of its financial reporting.
John Bridgman - Chair Anne Urlwin - Director
This Statement of Performance Expectations (SPE) sets out the performance expected of CRL Ltd for the period 1 July 2024 to 30 June 2025.
CRL Ltd has been established to support the development of our city and of greater New Zealand by delivering a large-scale railway infrastructure project. The City Rail Link (the Project) is a significant step towards a world-class railway system in Auckland.
The Statement of Performance
Expectations for 2024-2025 reflects the transition from heavy construction work for rail infrastructure and stations to comprehensive testing and commissioning for new systems, infrastructure, and processes.
The Project is on track to be completed by November 2025. Once the Project has been completed to the satisfaction of the New Zealand Government and Auckland Council (CRL Ltd’s two sponsors), it will be handed over to new asset recipients. The majority of assets will be transferred to Auckland Transport and KiwiRail Holdings Ltd, who will set an opening day for passenger services.
The people of Auckland will then enjoy a state-of-the-art railway network that is built to honour our past, present, and future.
City Rail Link Ltd’s scope includes:
• Building twin tunnels with a combined length of 3.45 kilometres to connect Waitematā Station (Britomart) to Maungawhau Station in Mount Eden, with tunnel depths of up to 42 metres below ground level
• Building two new stations:
» Te Waihorotiu Station under Albert Street with entrances at Wellesley Street and Victoria Street
» Karanga-a-Hape Station under Karangahape Road with entrances at Beresford Square and Mercury Plaza
• Upgrading two existing stations:
» Transforming Waitematā Station into a two-way through station
» Major redevelopment of Maungawhau Station in Mount Eden
• Enabling up to 48 trains per hour during peak traffic times and creating the capacity for nine-car electric trains to provide more seats
• Preparing stations and key urban surroundings for the development of new homes, community spaces, and workplaces by Eke Panuku Development Auckland and Kāinga Ora
• Enhancing streetscapes around stations and throughout Albert Street
• Performing wider rail network improvements at The Strand, Ōtāhuhu, and Newmarket
• Funding rail network improvements for Henderson that will be delivered by KiwiRail Holdings Ltd
TRANSFORMINGHOW PEOPLE T
2 x PEOPLE LIVING WITHIN 30 MINS OF CBD
TRAVEL, WORK , VISIT ,AND LIVE
A fully operational City Rail Link will:
• Contribute to a vibrant Auckland and support the growth of the city
• Deliver more trains and faster journeys: double the number of people living within 30 minutes’ travel of Auckland’s city centre and allow for a train in each direction at least every 10 minutes during peak traffic hours
• Drive investment in businesses, employment, and housing around the four key stations and the city’s rail corridors, supporting a more sustainable and productive city
• Provide better travel choices to ease pressure on Auckland roads, reduce bus congestion in the city centre, and facilitate cleaner air as a health dividend
• Help transform surrounding streets into ideal places to live, work, and socialise
10 MINS OR LESS BETWEEN TRAINS IN EACH DIRECTION DURING PEAK HOURS INITIALLY
CRL Ltd’s Corporate Structure
CRL Ltd is a Crown Entity created to manage the delivery of the City Rail Link transport infrastructure project.
CRL Ltd was established as an operating company on 1 July 2017 following an agreement by the Company’s Sponsors – the New Zealand Government (Crown) and Auckland Council – to jointly fund the Project and to partner with each other for its delivery. CRL Ltd reports regularly to its Sponsors, as set out in the Project Delivery Agreement (PDA).
Incorporated under the Companies Act 1993, CRL Ltd is a majority-Crown-owned entity and is listed under Schedule 4A of the Public Finance Act 1989 and Part 2 of Schedule 1 of the Ombudsman Act 1975. In addition, the Public Finance Act 1989 applies several provisions of the Crown Entities Act 2004 to CRL Ltd as if it were a Crown Entity under that Act.
CRL Ltd works with the Ministry of Transport to meet the Government’s expectations around national security risks and interests in its procurement framework and processes.
CRL Ltd’s shareholders are the Crown, which acts by and through the Ministers of Finance and Transport, and Auckland Council. The Crown holds 51 per cent of voting shares. Auckland Council holds the remaining 49 per cent. Each shareholder contributes 50 per cent of the cost of the Project by way of equity contribution.
Atua panels installed at Karanga-a-Hape Station
The Company’s shareholders have appointed five non-executive directors to the Board with the approval of Cabinet and the Auckland Council Governing Body. This Board guides and monitors CRL Ltd’s activities to a high standard of corporate governance and regulatory compliance. The Board performs all accounting, reporting, risk management, and responsibilities in accordance with legislation. The directors comply with their obligations under the Companies Act 1993, the Crown Entities Act 2004, the Public Finance Act 1989, and other relevant legislation.
To aid the directors, CRL Ltd’s Board has two standing committees:
• The Audit and Risk Committee, which provides recommendations, counsel, and information on accounting, reporting, risk management, and responsibilities under legislation.
• The People and Remuneration Committee, which provides advice and recommendations on remuneration and human resources policies for CRL Ltd.
The responsibility for management, operation, and administration of CRL Ltd rests with the Company’s Chief Executive, who in turn is accountable to the Board. The Chief Executive has appointed a leadership team to direct and oversee the Project and its associated workstreams.
CRL Ltd’s Key Contracts and Relationships
CRL Ltd has engaged contractors to facilitate the delivery of the Project. Contracts active in the 2024-2025 period are listed in Table 1 (Page 13).
The majority of Project works fall under contracts C3, C5, and C7. Under the Project Alliance Agreement, these works will be delivered by the Link Alliance, which is made up of CRL Ltd, Vinci Construction Grands Projets S.A.S., Downer NZ Ltd, Soletanche Bachy International NZ Ltd, WSP New Zealand Ltd, AECOM New Zealand Ltd, and Tonkin & Taylor Ltd.
The Link Alliance is governed by the Project Alliance Board, which consists of the CRL Ltd Chief Executive and Programme Delivery Director, as well as representatives from the Link Alliance and the Stakeholder Alliance Participants (Auckland Transport and KiwiRail Holdings Ltd).
CRL Ltd’s collaboration with KiwiRail Holdings Ltd and Auckland Transport is vital to the successful completion and operation of the Project. These three parties have co-located and have arranged an informal alliance known as the One Client Alliance for the purpose of delivering, operating, and maintaining the Project.
The One Client Alliance is also supported by Downer New Zealand’s Asset Maintenance and Services business unit and Auckland One Rail, both of whom are contracted to Auckland Transport. The Asset Maintenance and Services business unit manages the maintenance of stations and their associated systems, facilities, and urban spaces. Auckland One Rail operates passenger rail services and stations, manages the supply of train drivers and train staff, and interfaces with customers.
CRL Ltd will continue to work closely with Auckland Transport and KiwiRail Holdings Ltd, as well as any other asset recipients directed by the Sponsors, to transfer discrete assets prior to Project Practical Completion under the PDA and to ensure that the Project meets operational requirements. Through the One Client Alliance, CRL Ltd is supporting Auckland Transport and KiwiRail Holdings Ltd in preparations for the opening of passenger services on the City Rail Link. This collaboration involves proactively addressing and mitigating risks that could occur post practical completion of the Project and sharing scarce specialist resources.
CRL Ltd and its contractors collaborate with local government, transport, businesses, and mana whenua to deliver a successful project. The Company maintains communication with the public and other stakeholders through channels such as the Company’s website, mainstream media, social media, events, site tours, monthly community updates, and newsletters.
The Sponsors established a $12 million Targeted Hardship Fund (THF) to alleviate genuine financial hardship faced by small businesses due to construction disruption within the contract C3 Affected Area. CRL Ltd has been tasked with the management of the THF.
As of 31 March 2024, a total of $7.61m from the THF has been paid to affected businesses. Out of 498 applications, 442 have been paid or approved. 53 have been declined as they did not meet the eligibility criteria. The remainder are pending or being processed.
Now that heavy civil construction for contract C3 has come to an end, construction impact will gradually reduce and streetscapes will be handed back to the public. Correspondingly, the level of financial support available through the THF will also decrease and will eventually end.
Worker choir sing waiata at unveiling of Sky element at Maungawhau Station
Each year, CRL Ltd publishes an annual report highlighting all aspects of construction gains and challenges, as well as a Health, Safety, Environment and Sustainability Report that showcases progress around key social and environmental objectives. The Statement of Intent and the Statement of Performance Expectations are regularly updated to reflect CRL Ltd’s progress.
CRL Ltd has a finite life span and will exist for as long as required for the Project and as determined by its shareholders. Construction of rail infrastructure and stations is expected to be completed by the Link Alliance by November 2025. This is followed by a two-year period in which Link Alliance will rectify defects in completed works.
Day One opening for passenger services will be determined by Auckland Transport and KiwiRail Holdings Ltd.
Workers dismantling the temporary station plaza building at Waitematā Station
Table 1
Contractors engaged by CRL Ltd to help deliver remaining contracts for the Project and meet performance targets for 2024-2025.
C5 Link Alliance (Awarded as part of expanded C3 contract)
C7 Link Alliance (Awarded as part of expanded C3 contract)
C8 Newmarket Junction (KiwiRail Holdings Ltd)
C8 Henderson Station (KiwiRail Holdings Ltd)
C9 Britomart East (KiwiRail Holdings Ltd)
Design, procure, and deliver rail and station infrastructure and systems across the full geographic area of the City Rail Link from just south of Wyndham St to the North Auckland Line at Mt Eden. Works include the design and construction of twin tunnels and two new central underground stations, the complete redevelopment of the station at Maungawhau, the connection of tunnels into the existing North Auckland Line live rail corridor environment, the installation and integration of rail systems, and testing and commissioning from Waitematā Station to Maungawhau Station.
Connection of tunnels into the existing North Auckland Line live rail corridor environment.
Rail systems, integration, testing and commissioning from Waitematā Station to Maungawhau Station.
New crossover comprising of new realigned trackwork, realigned overhead line equipment (OHLE), and associated signalling equipment at Newmarket.
New track formation and platform remodelling works. This work will be funded by CRL Ltd and delivered by KiwiRail Holdings Ltd.
Reconfiguring of Britomart East junction to increase trains per hour capacity, including structural alterations to the existing tunnel, track slab, and platforms. Includes access enhancement works at Strand Station.
CRL Ltd’s Reportable Outputs
This section describes CRL Ltd’s outputs for the period 1 July 2024 to 30 June 2025 which are reportable under section 149E(1)(a) of the Crown Entities Act 2004.
CRL Ltd’s appropriation is the Crown’s 50 per cent contribution to FY25 Project funding. Per this appropriation, CRL Ltd has one reportable output class: to “Deliver the Auckland City Rail Link project by November 2025.”
Per section 149E(1)(c) of the Crown Entities Act 2004, CRL Ltd does not propose to supply any class of outputs in the 2024-2025 financial year that is a non-reportable class of outputs.
The expected revenue and expense for each reportable output for the financial year 2025 is as follows:
Administer the Targeted Hardship Fund (THF) $12,000,000 (Crown share 50% or $6,000,000) revenue and expenditure. THF cashflow nets off to nil in the CRL Ltd Financial Statements.
The approved appropriation performance targets for the Project and the THF are consistent with the Estimates within the Transport Vote for FY24 and those proposed for FY25.
In the financial year 2025, CRL Ltd will measure its output (to deliver the Auckland City Rail Link project by the end of 2025) through these Output Measures:
• Project Delivery
• Funding Envelope
• Community and Stakeholder Engagement
• Health and Safety
• Sustainability and Social Outcomes
Oversite Development means the development that will occur on publicly held land in the vicinity of Te Waihorotiu, Karanga-a-Hape and Maungawhau Stations that is no longer required for the Project (for example, land not required for the railway tunnels, stations and associated works areas). While there is no specific target for Oversite Development in 2024-2025, CRL Ltd is supporting Eke Panuku Development Auckland and Kāinga Ora to create and capture value for Auckland and generate financial growth through development works.
Output Measures and Targets for 2024-25
Statement of Compliance
CRL Ltd’s Statement of Performance Expectations has been prepared in accordance with the requirements of the Crown Entities Act 2004, which include the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP) and the Companies Act 1993.
The Statement of Performance Expectations has been prepared in accordance with Tier 1 Public Benefit Entity (PBE) financial reporting standards, which have been applied consistently throughout the period.
Disclosure of judgements and assumptions
In preparing the Statement of Performance Expectations, CRL Ltd has made judgements on the application of the reporting standard PBE FRS 48 and has made estimates and assumptions concerning the future. These estimates and assumptions may differ from actual results.
CRL Ltd has selected performance targets to reflect material and important milestones in the progress of the Project, including Delivery, Funding Envelope, Community & Stakeholder Engagement, Health & Safety, and Sustainability and Social Outcomes. Consideration has been given to areas of interest for a wide range of stakeholders, including ratepayers, the local community, and New Zealanders generally.
There are conditions that may impact on CRL Ltd’s performance targets and result in a variation from the anticipated or forecast results. There were no significant judgements made on aggregation of performance data.
Performance Targets
CRL Ltd’s Statement of Intent provides an overview of the Company, its activities, and its objectives. The Statement of Intent for 2025-2027 stands in conjunction with this Statement of Performance Expectations for 2024-2025. Together, these documents define key measures and targets for the Project. The performance targets within the Statement of Performance Expectations are aligned with those in the Statement of Intent.
The following sections of this document will outline changes to performance targets from the prior year and set out new performance targets for 2024-2025, as established by the Company’s management and reviewed by the Board and Sponsors. These performance targets are intended to track the Project’s progress across both construction and non-construction activities. CRL Ltd monitors its progress through monthly reports to the Company’s Board and Sponsors. CRL Ltd will also report on its performance in the 2024-2025 Annual Report.
The Statement of Performance Expectations will note externally verified targets, as well as any linkages between financial statements and service reporting. Service reporting will also be addressed more broadly in CRL Ltd’s Annual Report.
Project Delivery
The last of the Project’s early works non-Alliance contracts are expected to be completed by early 2025. These contracts are for the delivery of a new crossover and associated signalling equipment at the Newmarket junction (contract C8) and the remodelling of Britomart East from a terminus station layout to a through station layout to improve trains per hour capacity (contract C9). CRL Ltd is also funding track and platform works to be delivered by KiwiRail Holdings Ltd at Henderson Station.
Now that the Link Alliance has finished the majority of heavy civil and tunnelling works (contracts C3, C5, and C7), the current focus of the Project is on the implementation of architectural finishes, station fit-outs, the installation of systems, and testing and commissioning for safe and successful management of the railway, stations, and buildings. The Sponsors agreed to move the C3, C5, and C7 target practical completion date from December 2024 to November 2025 predominantly due to the impact of Covid-19.
All stations are expected to have permanent power by August 2024. 25kV Traction Power Energisation is planned for completion by October 2024; this enables the operation of overhead line equipment (OHLE), which provides power to electric trains. Dynamic testing will then commence, and trains will be run through City Rail Link tunnels to demonstrate that the installed works perform as expected and to enable the completion of testing and commissioning for rail systems.
The Sponsors will transfer certain works to the ultimate asset owner, which in most cases will be Auckland Transport or KiwiRail Holdings Ltd. For FY25, these works include the Normanby Road bridge, Mt Eden Road bridge, the Porters Avenue streetscape, and other related streetscapes. Due to competing priorities and Block of Line availability, it was decided to defer the final Britomart East contract C9 works (Stages 4 to 6 track works) to protect the overall Project Practical Completion date. These works are now expected to be complete by May 2025 and will also be handed over when finished. The remaining delivery performance targets are part of the larger station and tunnel assets and will only be transferred when the Project reaches practical completion.
The Project Delivery performance targets have been aligned to reflect the Link Alliance works through to the testing and commissioning stage of the Project and then to practical completion, which is anticipated in November 2025. As practical completion lies beyond the 2024 – 2025 timeline of this Statement of Performance Expectations, CRL Ltd has instead selected key milestones pertaining to each of the station works that are expected to be completed within FY25. These interim key milestones are tangible and verifiable measures that provide a reliable indicator of Project momentum within the overall construction program.
Funding Envelope
This SPE includes a new target – delivery of the project within the budget established by the PDA target project cost. The appropriation of $258m represents the Crown’s 50 per cent share of the total budgeted funding for FY25 of $516m. In FY24, the funding budget was $692m (appropriation $346m) but the actual funding requested was $651m (lower than budget by six per cent). There are challenges in accurately forecasting construction spend (including testing,
commissioning, and systems spend) over a 12-month period. The actual Project funding is recorded in the CRL Ltd financial statements Statement of Cashflow. CRL Ltd will continue to maintain its tight discipline over corporate costs to ensure that the Company remains financially efficient.
Celebration at community gathering, Branch Out Festival on Nikau Street
Community and Stakeholder Engagement
CRL Ltd is committed to being a good neighbour and works constructively with local businesses, residents, and stakeholders to minimise disruption. The Communications and Stakeholder Engagement team keeps the Project’s multiple stakeholders informed about Project benefits and potential construction impacts.
The team also plays a crucial part in ensuring the satisfactory operation of the THF to meet the requirements set out by the Sponsors. CRL Ltd will continue to manage the THF in a timely manner and will ensure that it maintains communication with small businesses throughout changes in the funding process.
As outlined in CRL Ltd’s Statement of Intent, special importance continues to be placed on the Project’s ten-year partnership with mana whenua. As a result of this valued partnership, the Project’s railway stations have been designed to embody the spirit of New Zealand and preserve the cultural and historic ties of iwi to Tāmaki Makaurau. CRL Ltd is fortunate to have benefited from Māori mātauranga (knowledge) through many stages of the Project so far, and the Company looks forward to the continuation of this partnership.
Maungawhau Station workers celebrate the completion of Civil works
Health and Safety
Health and safety are fundamental to the Project’s activities.
The Health and Safety Performance Index (HSPI) provides CRL Ltd and the Link Alliance with a comprehensive metric to measure leading and lagging Health and Safety indicators. These indicators are combined to provide an overall measure of performance. The HSPI was developed in the United Kingdom and has been used for other major international projects. The chosen minimum score – 80 out of 100 – is based on international standards and represents a stretch target for the New Zealand construction industry. The HSPI target for FY24 was also a minimum score of 80. The supporting data for the HSPI score is provided by the Link Alliance and reviewed by CRL Ltd.
For FY25, the target for the Total Recordable Injury Frequency Rate (TRIFR) will be maintained “at or below six injuries per million hours worked”. The Project’s actual TRIFR performance in FY23 was 4.1 injuries per million hours worked. As of 31 March 2024, the rolling average TRIFR for FY24 is 1.25.
CRL Ltd will produce an annual safety assurance summary report to outline current and upcoming phases of the Project such as requirements and systems interface management, design and construction delivery and verification, testing and commissioning, operational readiness, and handover and acceptance. Stakeholders will thus be assured that the delivered Project is acceptably safe, reliable, and maintainable.
CRL Ltd will continue to collaborate with WorkSafe and leverage this Project to raise the overall standard of Health and Safety in the New Zealand construction industry.
Sustainability and Social Outcomes
CRL Ltd continues to work towards sustainability excellence.
The Project’s sustainability performance for the Link Alliance contract C3 works is externally verified using the Infrastructure Sustainability (IS) Council rating tool, which has been adapted in partnership with mana whenua to respond to Aotearoa’s unique cultural context. The Link Alliance achieved a Leading IS Design rating in 2023, and an As Built rating will be submitted for verification in mid-2024.
The reduction of energy-related emissions from construction remains a key sustainability target, one which will generate flow-on emission reductions and other benefits for the duration of the City Rail Link asset’s lifespan.
CRL Ltd is committed to creating a legacy of positive social outcomes by enhancing career development and training opportunities for mana whenua, Māori, Pasifika, and youth. While the Progressive Employment Programme was executed to a high degree of success and is now concluded, the Link Alliance continues to implement a Career Development Plans (CDP) initiative for this focus group, reflecting the Alliance’s longterm relationship with the broader community and its dedication to generating real change over the lifetime of the Project. The ≥50 per cent CDP target was based on input from leaders in the construction industry. This target ensures that focus group employees (Māori, Pasifika and youth) will have a clear career plan as they move forward into other work.
CRL Ltd is proud of the achievements it has made with the Link Alliance in both sustainability and social outcomes to date, and these areas will remain key targets for the duration of the Project. The Project has been designed with the principles of sustainability and social development in mind, ensuring that CRL Ltd’s contribution to these areas will endure over time.
Construction continues on the Beresford Square entrance to Karanga-a-Hape Station
Table 2
Performance targets and measures for each of CRL Ltd’s Output Measures for 2024-2025
Strategic area Outcome
Project Delivery Deliver a safe, operable, quality rail link and streetscapes to agreed configurations in a timely manner
Funding Envelope
Achieve financial efficiency
Performance Targets and Measures
• Permanent Power available to all Stations by August 2024
• 25 kV Traction Power Energisation by October 2024
• Commencement of Dynamic Testing after power energisation
• Britomart East C9 contract stages 4 to 6 track and signalling complete* by May 2025
• Deliver the Project within the approved budget as per the PDA target project cost**
• Project spend of at least 90 per cent of approved Appropriation ($258m)
• Operate CRL Ltd’s corporate functions within the approved budget
Community and Stakeholder Engagement
Deliver a high level of communication and engagement
Health and Safety Build an underground rail link that is safe for constructors, operators, maintainers, and users
Sustainability and Social Outcomes
Achieve sustainability excellence including social outcomes
• Achieve total over 12 months of >4,000 likes on social media posts, >15,000 direct views of videos, and 25 media releases
• Increased public participation through events (aiming for 8 events) and site tours (aiming for 25 site tours)
• Targeted Hardship Fund payments made to successful applicants within 30 days of CRL Ltd receiving a completed application
• Total Recordable Injury Frequency Rate (TRIFR) at or below six injuries per million hours worked
• HSPI score of ≥80 on average over a 12-month period
• Publish an annual safety assurance summary report by 30 June 2025, reporting on safety for operations, maintenance, and users
• C3 to achieve ‘Excellent’ Infrastructure Sustainability (IS) As Built rating
• C3 to achieve 25 per cent reduction (versus base-case) in construction and projected operational energy-related greenhouse gas emissions (tCO2e).
• ≥50 per cent of C3 focus group (Māori, Pasifika, and Youth) Link Alliance employees with Career Development Plans
The above is explained in detail in the Outcomes, Target Areas, and Measures section of the Statement of Intent.
* Completion means that the works are fully delivered (subject to the 12-to-24-month defect liability period) and the asset involved is available for use.
** The PDA target project cost is based on a P50 estimate, meaning that there is a 50% probability the actual project cost could be below or above that number.
Forecast Financial Statements
The forecast financial statements (Pages 23-26) include a Statement of Forecast Comprehensive Revenue and Expenses, Statement of Forecast Financial Position, Statement of Forecast Changes in Equity and Statement of Forecast Cash Flows for the 2024 and 2025 financial years.
CRL Ltd is funded by the Sponsors to deliver the Project. Under the terms set out in the PDA, funding is recognised as share capital. Other funding received by CRL Ltd is primarily interest on surplus cash balances. These items will be recorded as revenue in the Statement of Forecast Comprehensive Revenue and Expenses.
CRL Ltd incurs expenditure as part of its activities. Operating expenditure (i.e. the day-to-day running of CRL Ltd) and project expenditure (i.e. unable to be capitalised) is recorded in the Statement of Forecast Comprehensive Revenue and Expenses. Project expenditure that is capital in nature is recorded in the Statement of Forecast Financial Position as Capital Work in Progress. As construction is completed, assets are transferred to the shareholders, who will in turn hand them over to parties such as Auckland Transport and KiwiRail Holdings Ltd.
Rail vehicle in the twin tunnels under Maungawhau Station
City Rail
Link
Statement of Forecast Comprehensive Revenue and Expenses
For the year ending 30 June
(44,338) (283,413)
City Rail Link Statement of Forecast Financial Position
For the year ending 30 June
City Rail Link Statement of Forecast Changes in Equity
For the year ending 30 June
Electrification of Te Waihorotiu Station
City Rail Link Statement of Forecast Cash Flows
For the year ending 30 June
Notes to the Forecast Financial Statements for the year ending 30 June 2025
Reporting Entity
City Rail Link Limited (‘CRL Ltd’ or the ‘Company’) is a Crown Entity, registered under schedule 4A of the Public Finance Act 1989, and is domiciled in New Zealand. The Company was incorporated on 13 April 2017. CRL Ltd is jointly owned by the Crown and Auckland Council.
The Company’s purpose is to govern and manage the delivery of the Project. CRL Ltd commenced operations with effect from 1 July 2017.
Basis of Preparation
These prospective financial statements have been prepared:
• In accordance with the Crown Entities Act 2004, which include the requirement to comply with New Zealand generally accepted accounting practice (NZGAAP) and the Companies Act 1993
• In accordance with PBE FRS42 and NZGAAP as it relates to prospective financial statements
• The Company reports under Tier 1 Public Benefit Entity (PBE) standards and as such the prospective financial statements have been prepared on that basis
• In New Zealand Dollars $000, which is the Company’s functional currency, unless separately identified
• The information in these financial statements may not be suitable for another purpose.
Statement of Significant Underlying Assumptions
Funding from the Sponsors
Funding from the Sponsors is based on the expenditure programme for the Project, assuming sufficient funding is available for the Project. Funding requirements are assessed monthly and the funding application to the Sponsors and approval by the Sponsors is completed before the beginning of every quarter. For successful funding applications, the majority of funds are received at the beginning of the new quarter.
Personnel costs Forecast costs assume the current organisational structure will be reducing throughout the period. A proportion of personnel cost which is directly attributable to the Project is capitalised and recognised as Capital Work in Progress in the Statement of Forecast Financial Position.
Capital CRL Ltd is undertaking a programme of capital spending aimed at delivering the CRL Project. Projected costs and timing of expenditure are based on plans and estimates that were current when these forecasts were prepared.
Opening equity
Estimated opening equity assumes 2023/24 net deficit of $44.3 million. This impacts on estimated amounts of cash in hand and net assets.
Notes to the Forecast Financial Statements for the year ending 30 June 2025
Significant Accounting Policies
The financial statements contained in this document are prospective and, by their nature, contain assumptions which may lead to material differences between the prospective financial statements and the actual financial results prepared in future reporting periods. CRL Ltd has undertaken a review of its financial models and believes they remain fit for purpose in assisting CRL Ltd in preparing prospective financial statements. The prospective statements for CRL Ltd are subject to significant management judgement relating to the timing and quantum of the investments, and the prospective information reflects the best information available to management.
Project Funding
Project costs (capital in nature and which create an asset for CRL Ltd, as well as operating costs for CRL Ltd’s day-to-day running and management) are funded by a share issue to the Crown and Auckland Council. This funding is not recognised as revenue in the forecast financial statements.
Rental Revenue
Other revenue generated by CRL Ltd is from rental income from properties required for the project and will be recorded as revenue.
Interest Revenue
Interest revenue is calculated on a proportion basis for the surplus cash balances throughout the forecast.
General Expenses
General expenses include costs such as operating leases, rates, directors’ fees, telecommunications, and other office operating costs.
Foreign Currency Transactions
Foreign currency transactions are translated into NZ$ (the functional currency) using the spot exchange rates at the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currency are recognised in the surplus or deficit.
Goods and Service Tax
Items in the financial statements are presented exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.
Income Tax
CRL Ltd is a Public Entity in accordance with the Income Tax Act 2007 and consequently is exempt from the payment of income tax. Accordingly, no provision has been made for income tax.
Property, Plant & Equipment
Property, plant, and equipment consists of land, subterranean land, buildings, furniture and fittings, computer hardware, software, and office equipment.
Recognition and Measurement
Property, plant, and equipment is measured initially at cost. Cost includes expenditure that is directly attributable to the acquisition of the items. The cost of an item of property plant and equipment is recognised only when it is probable that future economic benefit or service potential associated with the item will flow to CRL Ltd, and if the item’s cost can be measured reliably.
Capital Work in Progress
The majority of capital expenditure will remain as ‘Capital Work in Progress’ for the duration of the Project.
Capital work in progress is recognised at cost less impairment and is not depreciated.
Depreciation
Land, Buildings and Subterranean Land are held for the development of rail tunnels and stations and are
Notes to the Forecast Financial Statements for the year ending 30 June 2025
not depreciated. All other assets are depreciated on a straight-line basis over the useful life of the asset. Depreciation is charged at rates calculated to allocate the cost or valuation of the asset less any estimated residual value over its remaining useful life.
The estimated useful lives of property, plant and equipment are as follows:
Subterranean Land Not depreciated
Land and Buildings Not depreciated
Furniture and fittings
Office equipment
Computer hardware
5 years
5 years
5 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits or service potential is expected from its use or disposal.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in surplus or deficit.
Share Capital and Equity
All B class shares issued are fully paid and have a face value of $1 each. The Shareholder’s investment in CRL Ltd is made up of 4,474,280,000 shares as of 1 July 2024 and is expected to be 4,990,280,000 shares as of 30 June 2025.
Critical Accounting Estimates and Assumptions
In preparing these prospective financial statements, CRL Ltd has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results.
Estimates and assumptions are continually evaluated and are based on expectations of future events that are believed to be reasonable under the circumstances.
The estimates and assumptions that have significant risk of causing material adjustment to the carrying amount of the assets and liabilities within the forecast financial statements are as follows:
• Third Party Works: CRL Ltd funds work undertaken by KiwiRail Holdings Ltd on the KiwiRail Holdings Ltd network. As part of the overall Project, CRL Ltd undertakes or funds construction work across the wider Auckland rail network. The nature of the work completed, and the ownership of the assets constructed, means they do not form part of the CRL Ltd assets, in accordance with NZ GAAP, and are included in the surplus or deficit.
• Asset Transfers: as CRL Ltd completes certain contracts it may transfer separable assets from the Project works (including assets related to the enabling works and a number of utility services) for the CRL to the Sponsors or their subsidiaries as those assets are commissioned for use. However, the ownership of the majority of CRL Ltd’s key assets will stay with CRL Ltd until the completion of the Project. Therefore, they will remain as CRL Ltd capital work in progress until that time. Per PBE IPSAS 37 Joint Arrangements, CRL Ltd continues to be classified as a joint venture (as opposed to joint operation) by the Sponsors as the ultimate ownership of the CRL assets is yet to be determined. Any separable assets transferred prior to project completion will transfer without compensation and hence will be treated as a vested asset in the period in which the asset transfer occurs. CRL Ltd will recognise a vested asset expense on transfer of the asset.
Within FY25, CRL Ltd expects to transfer Normanby Road bridge, Mt Eden Road bridge, Porters Avenue streetscape and other related streetscapes to the Sponsors.
Appendix: Directory
Shareholders
The Minister of Finance
The Minister of Transport
Auckland Council
Board
John Bridgman (Chair)
Russell Black
Malcolm Gibson
Brian Harrison
Anne Urlwin
Senior Management
Sean Sweeney (Chief Executive)
Patrick Brockie
Steve Brunell
Wayne Cooney
Sumi Eratne
Emma Kurtovich
Kirsten Mayne
Russell McMullan
Sandip Ranchhod
Victoria Thackwray
Bankers
Bank of New Zealand
ANZ Bank New Zealand Limited
Auditor
Audit New Zealand on behalf of the Auditor-General
Registered Office
Level 2, 25 Teed Street
Newmarket
Auckland 1023
Email: info@cityraillink.govt.nz
Web: www.cityraillink.co.nz
Phone: 0800 275 8255
Mana Whenua Forum members at the unveiling of the Sky Element on Maungawhau Station
