Statement of Performance

Construction of the temporary shaft in Mercury Lane that will provide access to the tunnels

This section describes the 2019-2020 progress made towards achieving the identified performance measures as outlined in the Statement of Performance Expectations.

CRL Ltd has one output class and six output areas. The results reported within this section should be read in conjunction with the results reported against the Statement of Intent (SOI) on pages 13-18*.

CRL Ltd’s performance against some Key Performance Indicators (KPIs), particularly with regard to Project Delivery, have been impacted by Covid-19 government imposed restrictions during Alert Levels 4, 3 and 2. During Alert Level 4 no construction work could be undertaken, and new health and safety protocols during Alert Levels 3 and 2 such as social distancing also impacted the speed of construction on CRL’s sites.

Note 1.16 (v) in the Financial Statements provides a more fulsome description of the financial impact of Covid-19 on CRL Ltd.

Funding Envelope

Achieve fiscal efficiency KPI 2020 Actual 2020

Meet delivery targets within approved Appropriation Achieved. Remained within the funding budget for the project.

Provide 12-month forward cashflow forecasts to manage funding calls

Timely financial reporting of project costs on a cost to complete basis

Develop organisational efficiency measures

Meet statutory and other agreed financial Achieved.

Achieved.

Achieved. Agreed measure: “Meet Corporate Costs whole of life budget”. These costs remain within budget and are monitored monthly. reporting requirements

Achieved.

*Because the SPE and SOI were prepared at different times, some of the targets set out in the document do not align.

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 KPI 2020 Actual 2020

An externally validated maturity assessment of the CRL Health and Safety Management System (HSMS) using the Risk Management Maturity Model (RM3) will achieve Level 3 (standardised) by June 2020 Total Recordable Injury Frequency Rate (TRIFR) at or below 6 injuries per million hours worked Zero WorkSafe New Zealand notified events 95 per cent of incidents investigated and assigned actions closed out within agreed timescales Publish annual safety assurance summary report by June 2020 to assure safety for operations, maintenance and users

KPI 2020

Continued progress of C1 and C2 “Excellent” Infrastructure Sustainability (IS) “as built” rating 95 per cent of construction and demolition waste diverted from landfill* 25 per cent reduction in construction and operational energy related carbon* 10 per cent reduction in C1 and C2 embodied carbon of construction materials Deliver social outcomes pilot Progressive Employment Programme with six rangatahi (young people) Issue Sustainability Annual Review Achieved. An independent assessment of the Health and Safety maturity across CRL has achieved Level 3, ‘Standardised’. The CRL HSMS has undergone substantial revision to align with the requirements of RM3. This better reflects its organisational health and safety duties and the implementation of several

recommendations from previous reviews. Achieved. Project TRFIR rate was 4.7 injuries per million hours worked. Increased health and safety

monitoring and support have been put in place. Not achieved. One WorkSafe notifiable event occurred in December 2019. Incident investigation was completed and corrective actions closed out.

Achieved. 100 per cent of incidents investigated and closed out within agreed timescales.

Safety Assurance Summary Report for 2020 is well advanced, with draft to be distributed to stakeholders in August for review. This report is expected to be

published in September 2020.

Actual 2020

Achieved. C1 and C2 are on target to achieve ‘Excellent’ as-built rating. Final ratings will be confirmed after practical completion.

Achieved. Over 99 per cent construction and demolition waste (including spoil) has been diverted from landfill for C1 and C2 over the last year.

Achieved. C1 and C2 construction energy related carbon is projected to be 59 per cent below the ‘base case’, or business as usual, upon completion. C1 and C2 operational energy related carbon is projected to be 25 per cent below the ‘base case’ upon completion.

Achieved. C1 and C2 contractors are achieving a 25 per cent reduction in embodied carbon of

construction materials compared to the ‘base case’. Achieved. Pilot programme successfully concluded in

October 2019. Achieved. Report for 2018/19 issued on the CRL website in December 2019.

*Other contracts such as C6 and C8 Ōtāhuhu were monitored but excluded from this reporting due to materiality.

Deliver a safe, operable and quality underground rail link in a timely manner

Oversite Development

Realisation of development potential in and around CRL project sites

Agree C5 and C7 for inclusion as variation to C3 Alliance and commence work on same by December 2019

Commencement of C3 Alliance on site January 2020 (Early Works Contract underway)

Complete C8 Ōtāhuhu Station by September 2020

Continued progress of C2 towards completion by December 2020 including Public Realm works Continued progress of C1 towards completion by July 2021 including Public Realm works

KPI 2020

Monthly report on progress of development opportunities Delivery of development options to the shareholders by June 2020 Develop master plans for CRL station precincts by June 2020 Commence community and stakeholder engagement by June 2020 Develop a CRL value creation and capture strategy by June 2020 Not achieved. The contract variation to include the C5 and C7 scope of work into the C3 Alliance is advanced, with formal inclusion of the variation forecast for October 2020. The delays are due to the complexities of the rail system works, integration with other works and Covid-19. Notwithstanding this, the C5 Mt Eden Single Line Early Works Contract was signed with KiwiRail and work is well advanced. A Development Agreement was executed with the Link Alliance for other early works across C5 and C7 in order to maintain momentum.

Achieved. Construction on the C3 Alliance Early Works Contract commenced prior to January 2020. Early works are underway in several locations with building demolition completed and utility diversions well advanced. Design work is also underway.

On track. C8 Ōtāhuhu rail works are scheduled for completion in August 2020 with the station works expected to be completed by September 2020.

On track. C2 progress continues to programme despite Covid-19 delays. The cut and cover tunnels are complete and works are progressing on the Public Realm enhancement along Albert Street from Customs to Wyndham Streets. The additional Public Realm works on Lower Albert Street between Customs and Quay Streets are being completed by

Auckland Transport. Partially achieved. C1 tunnels are complete. Delivery of works are now forecast for November 2021 (due to Covid-19 restrictions). Works associated with the reinstatement of the Chief Post Office building are due

for completion in March 2021.

Actual 2020

Achieved. Monthly reports to Sponsors provided on time. Achieved. Development options presented to Sponsors in November 2019 with further report in April for decision

making. Achieved. Master plans presented to Sponsors in November 2019.

Not achieved. Engagement Plan provided to Sponsors in November 2019. Further detailed work has been requested by the Sponsors before beginning community and stakeholder

engagement. Achieved. Final Value Capture Strategy provided in April 2020.

Community & Stakeholder Engagement

Deliver a high level of communications and engagement KPI 2020 Actual 2020

Improved results from November 2018 public survey Achieved. Colmar Brunton survey undertaken July 2019 identified CRL as a hero project for Auckland Council. Public awareness increased by 8 per cent from November 2018.

Increased public participation through events (target 8), community liaison group meetings (target 12), stakeholder presentations (target 25) and site tours (target 25) Achieved. 18 events held, 12 Community Liaison Group meetings, 25+ stakeholder presentations and 35+ site tours.

Build positive profile of project with videos (target 10), social media (target at least 5 posts a week), proactive media releases (target 25) and community newsletter (target 12) Achieved. In excess of five social media posts per week, 106 videos, 58 media releases and 12 community newsletters over the year.

Positive partnership with Iwi through Mana Whenua hui (target 10)

Responsiveness (target 2 working days response to public enquiries) Achieved. 21 Mana Whenua hui held.

Achieved. All enquiries acknowledged within two working days on average.

Output Class Cost of Service Statement – City Rail Link Development $(000)

Revenue Actual 2020 Budget 2020

Total revenue

Total expenses

Net surplus/(deficit)

1,954

114,956

(113,002) 1,461

11,211

(9,750)

Actual 2019

3,819

29,115

(25,296)

Auckland City Rail Link Non-Departmental Capital Expenditure

The Crown is a 51 per cent shareholder of CRL Ltd and funds CRL Ltd on 50:50 basis with Auckland Council. The Crown and Auckland Council fund CRL Ltd by subscribing to equity in the company.

During 2019-20 the Crown contributed $258 million against the revised appropriation of $275.101 million. This appropriation is to achieve construction and operational readiness of the CRL project.

An explanation of the variances from budget can be found in note 15 of the Financial Statements within this Annual Report.

Assessment of Performance

City Rail Link Limited

Deliver the CRL project by 2024

Actual 2020

Progressing activities described on pages 13 - 18 against Statement of Intent (SOI) targets (taken from schedule 5 of the Project Delivery Agreement (PDA))

Target 2020

Project delivery target met.