CIP Project Information Form Page

1 of 18

‘Shovel ready’ Infrastructure Projects: Project Information Form

About this Project Information Form

The Government is seeking to identify ‘shovel ready’ infrastructure projects from the Public and certain Private Infrastructure sector participants that have been impacted by COVID 19. Ministers have advised that they wish to understand the availability, benefits, geographical spread and scale of ‘shovel ready’ projects in New Zealand. These projects will be considered in the context of any potential Government response to support the construction industry, and to provide certainty on a pipeline of projects to be commenced or re-commenced, once the COVID 19 Response Level is suitable for construction to proceed. The Infrastructure Industry Reference Group, chaired by Mark Binns, is leading this work at the request of Ministers, and is supported by Crown Infrastructure Partners Limited (CIP). CIP is now seeking information using this Project Information Form from relevant industry participants for projects/programmes1

that may be suitable for potential Government support. The types of projects we have been asked to consider is outlined in Mark Binns’ letter dated 25 March 2020. CIP has prepared Project Information Guidelines which outline the approach CIP will take in reviewing and categorising the project information it receives (Guidelines).

Please submit one form for each project that you consider meets the criteria set out in the Guidelines. If you have

previously provided this information in another format and/or as part of a previous process feel free to submit it in

that format and provide cross-references in this form.

Please provide this information by 5 pm on Tuesday 14 April 2020.

As an initial task the Infrastructure Industry Reference Group has been asked to prepare a report on infrastructure projects/programmes that are ready for construction and could, if the Government deemed it appropriate, be deployed as part of a stimulatory package. It should be noted that the full impact of COVID 19 on the economy will not be known for some time, and the Government’s decision to accelerate any construction-related spend will be determined by its assessment of priorities at the time. This information is being sought in good faith, but no undertaking can be made that the criteria or any other considerations will not change or that any projects coming forward from the Reference Group will be accelerated, or any of the Reference Group’s recommendations adopted. This situation we all find ourselves in is truly dynamic.

This document relates to the gathering of project information only and is not a Notice of Procurement. It does not

form part of any procurement process. It does not commit the Government or CIP to take any further steps, or provide

any financial or other assistance, in connection with any information in response to this document or the projects to

which that information relates.

1 We refer to “projects” throughout. This this term includes programmes of work in all cases.

CIP Project Information Form Page

2 of 18

Section 1: Key Information [Criteria 2 and 3]

1. Project Title:

2. Please provide your details:

Organisation Name: University of Waikato

Entity Type: Tertiary Education Organisation

Contact Name and Role: Alister Jones – Senior Deputy Vice-Chancellor

Email Address: alister.jones@waikato.ac.nz Telephone: +64274852236

3. Please provide a very brief description of the infrastructure project:

Brief description of the programme The proposal includes full development of a 10,585 sqm indoor multi-sport facility for shared use between the communities of Hamilton City and the Waikato region and the University of Waikato. Full development includes six indoor courts that can be configured for eight volleyball courts, eight unisex changing facilities for indoor and outdoor sports, reception and function area, two control rooms, two high performance labs, rehabilitation gymnasium, gallery and seating options. Development also includes provision to cover and heat the existing 50m pool, provide appropriate mechanical plant to ensure air quality, new toilet and changing facilities and shared reception with recreation facility. Problem being addressed The Waikato Regional Sport Facilities Plan identifies the need for a major indoor community recreational facility in the North East of Hamilton that is also connected with significant outdoor facilities. The preferred site for this development is on University of Waikato land which already has significant community use. Key benefits being delivered A key strategy for the University is to increase activation and engagement of the University campuses, with the

objective being to raise the profile of the University in the community, bring more people on to campus, and provide

a wider range of activities and outlets from which students and staff will benefit. Increasing student use of,

engagement with and benefit from campus facilities is also a part of this strategy.

Construction readiness/Deliverable Timeframe This programme is ready to begin construction within 12 months and has a two-year conveyor belt of projects lined up. How funding will aid progress Funding from government will allow early development of this project – 3 years in advance of what has been planned. Extra Information The Hamilton City Council and the University of Waikato are strategic partners and are committed to collaborating

to provide world class facilities, to improve the wellbeing of our communities and to make Hamilton and the Waikato

region a first choice for individuals and families to live, play, work, study and grow.

The community currently utilise the University campus facilities including the sports fields, indoor cricket pitch, tennis

courts, the 50m pool and there is a 5km shared pathway for pedestrians, cyclists, scooters that supports the

development of the Hillcrest to Hamilton cycle network.

Alongside this project, there are two other infrastructure components that support this strategy which include The

Pā and an extension to the Gallagher Academy of Performing Arts facility. A complementary piece of work is

underway on physical upgrades of access ways and shelter, toilet facilities, playgrounds, activating green spaces, and

public fitness stations accessible to the community.

Integrated Indoor Recreation Facility and Pool Project

CIP Project Information Form Page

3 of 18

Significant conceptual design work has been undertaken including stakeholder engagement, work with sporting and

community bodies, schools and city and surrounding council bodies. The physical site has been identified and the

project can be staged but begin relatively quickly if the necessary funding was available. With other associated capital

development work on the campus and related areas, work can begin on all of these projects in parallel.

4. This project will be located in which Territorial Authority:

5. Please confirm the project sector, category and type of infrastructure:

Project Sector ✓ Project Categories ✓

Accommodation ☐ Three waters ☐

Agriculture, Horticulture and Forestry ☐ Transport ☐

Alcohol Availability ☐ Buildings and Structures ✓

Bioscience and Biotechnology ☐ Other infrastructure ☐

Construction ✓

Energy ☐ Project Type ✓

Film and Television ☐ Critical infrastructure ☐

Imports and Exports ☐ New infrastructure ✓

Information communications and technology ☐ Replacement/refurbished infrastructure ☐

Manufacturing and Production ☐ Repurposed infrastructure ✓

Retail Trade ☐

Tourism ☐

Wholesale Trade ☐

Central Government ☐

Local Government ✓

Other (Recreation) ✓

6. What is the total cost of the project (NZ$M):

7. Provide a high-level breakdown of this spend (e.g. construction costs, professional fees, land, other etc.):

Phase One

Site Clearance and Bulk Earthworks for Indoor Recreation Facility $2,750,000

Site Clearance for Pool $320,000

Pool Water Services $2,200,000

$5,270,000

Phase Two

Construction and specialist pool works $12,800,000

Phase Three

Integrated Indoor Recreation Facility $38,000,000

Total $56,070,000

8. Briefly outline the value the project will deliver in terms of employment contribution.

The project will progress over 2 years which represents an average of 696 jobs per year.

Hamilton City Council & Waikato Regional Council

$56 million

CIP Project Information Form Page

4 of 18

Council desktop analysis anticipates 1,392 full-time employment years to be generated by the project expenditure.

Most of these jobs will be in the construction and supporting sectors but employment is also induced in other sectors

especially the service sector. This is detailed further under Q16.

Once operational the Integrated Indoor Recreation Facility and Pool will employ 3-5 full time employees on an

ongoing basis.

9. Briefly describe how the project is currently/ intended to be funded:

The University of Waikato intended to fund the project through:

• Long Term Plan (LTP) contributions from Hamilton City Council ($4 m) and other Councils within the region

• University cashflow

• Philanthropic contributions and bequests

• Support from charitable trusts

10. Has this project previously applied for funding with any part of Government? Yes: ☐ No: ☒

- If Yes, please describe which part of government (i.e. PGF, NZTA FAR etc.), the outcome of the discussions

and who such discussions were with (what Ministry and official).

Not Applicable.

Section 2: Construction Readiness [Criteria 1]

11. Please briefly explain the status of the project including confirmation that the project will fall into one of the three

categories of readiness (see 0 below).

This project is ready to start construction within 12 months (by 30 May 2021) and will be delivered over a 2-year

period.

Project Milestones Completed to Date

• Concept Design completed

• Preliminary Design and Specifications completed.

• The budget cost plan has been finalised and an initial Value Engineering process completed.

• Stakeholder engagement with Sport Waikato, Sporting clubs, and initial consultation with the elected

members of Hamilton City Council and Waikato District Council has been completed.

• Project team established which includes HCC and Sport Waikato representatives.

• Project team is poised to progress to resource consent and developed design.

• Full Business Case underway

Project Programme to Construction Commencement

• Design Process to Resource Consent (2-3 months)

• Detailed Design to Building Consent (4-5 months)

• Demolition and earthworks could commence earlier.

• Tender and Procurement Process (2 months)

(Note: some of these activities will be concurrent or will overlap)

12. Confirm which of the following categories the project best falls into.

CIP Project Information Form Page

5 of 18

Status ✓ Further commentary (briefly set out barriers to commencement)

A. Projects which currently are (or were) in

the construction phase but have been put

on hold due to COVID 19 and are likely not

to progress, or to progress at a much

slower rate or scale/scope, if not supported

post COVID 19

☐ [Insert your relevant commentary here]

B. Projects which have a high expectation of

commencing the construction phase within

the next six months (by 31 October 2020),

but are unlikely to do so due to COVID 19

☐ [Insert your relevant commentary here]

C. Projects which could have been expected to

commence the construction phase within

the next 12 months (by 30 May 2021), but

are unlikely to do so due to COVID 19

✓

The University of Waikato’s bottom line has been adversely affected by COVID19 and we expect this situation to prevail for several years. In the current environment the University will need to reconsider its investment in major capital infrastructure projects. In a regional context this project will provide employment benefits through the projected COVID-19 disruption period and further position the Hamilton and Waikato regions to recover faster and realise the overall benefits of the project sooner if the facility could be progressed immediately.

13. Confirm the status of key milestones

Status

✓ Expected Date

Procurement

Suitable tender complete ☐

Tender evaluation in progress ☐

Request for Tender in the Market ☐

About to put out a Request for Tender to the market ☐

Detailed Design

Detailed Design Complete ☐

Detailed Design Underway ✓

Detailed Design to commence ☐

Designations/Consents

Approved ☐

Lodged ☐

In preparation ✓

Land Acquired

Yes ✓

Being negotiated under PWA (please indicate stage below) ☐

Has not commenced ☐

Business Case or Investment Case

Approved ☐

Draft ☐

Underway ✓

None ☐

14. Briefly outline any other comments on the key project timetable or key milestones

CIP Project Information Form Page

6 of 18

[Please briefly cover:

- Key barriers / risks to the project being ‘shovel ready’

- Expected timeframes and processes for acquiring necessary resource consents

- Any other additional information as required above

- Expected construction completion date.]

Key Risks to the project being ‘shovel ready’

• Timeframes on a decision for this application – if project is to be accelerated then design needs to progress

as soon as possible.

• The various Alert Levels may affect ability to engage the appropriate workforce to undertake the necessary

on site work required for this project to commence.

Expected project programme

Demolition, civil works and site works can be accelerated and start on site October/November 2020 while the

balance of consenting and tendering processes are being completed.

Design & consenting 12 months

Construction 12-18 months

Completion (best case) End 2021

CIP Project Information Form Page

7 of 18

Section 3: Overall Benefits and Risks [Criteria 4]

Please advise at a high level whether a project brings real value (in an economic, social and/or environmental sense)

to New Zealand as a whole or the region in which it is located in line with Treasury’s Living Standards Framework2 and

Sustainable Development Goals3. Please take into account, where relevant, the draft 2021 Government Policy

Statement on land transport, available at https://www.transport.govt.nz/multi-

modal/keystrategiesandplans/gpsonlandtransportfunding/gps-2021/, and the priorities that it establishes.

15. Briefly outline the social, environmental and economic benefits of the project to the local region and New Zealand

and overall value for money.

2 https://treasury.govt.nz/information-and-services/nz-economy/higher-living-standards/our-living-standards-framework

3 https://www.mfat.govt.nz/en/peace-rights-and-security/work-with-the-un-and-other-partners/new-zealand-and-the-sustainable-development-goals-sdgs/

CIP Project Information Form Page

8 of 18

Economic Benefits

The project expenditure provides a direct boost to the local economy. Not only this but the indirect and induced

expenditure is expected to multiply the effectiveness of this funding. PWC has estimated in a report to the

Construction Strategy Group the multiplier effect for construction. “That one dollar invested in construction produces

between $2.51 and $3.11 in economic activity”. On that basis this project would return approximately $158M in

economic benefits.

The project will enable significant land for development. This should ensure land markets are more competitive. This

delivers on many elements of the Governments urban growth agenda. It will help enable a more responsive supply

of infrastructure, allow for cities to make room for growth, support quality built environments and enable strategic

integrated planning, and build a stronger partnership between central and local government.

Social Benefits

Sport and active recreation creates happier, healthier people, better connected communities and a stronger New

Zealand (refer Sport New Zealand “Value of Sport”). The Hamilton City Council and the University of Waikato are

committed to collaborating to provide world class facilities, to improve the wellbeing of our communities and to

make Hamilton and the Waikato region a first choice for individuals and families to live, play, work, study and grow.

Environmental Benefits

The design team will work toward integrative design and regenerative development. The environmental

considerations are:

• Place

• Human Scaled – Building Form and Transport

• Responsible water use – 50% less potable water than building code

• Energy and Carbon – Use 70% less energy and 20% less embodied carbon

• Healthy Interior – operations and fitout

• Materials – Non toxic, FSC and divert 80% of C&D waste

• Universal Access

• Inclusion – local and diverse labour input

• Beauty + Biophillia

• Education and Inspiration

• Lifecycle analysis – to reduce the ongoing facility management costs.

This project can be benchmarked against a NZGBC (Green Building Council) rating tool.

Sustainable Development Goals (UN Framework)

Good Health & Wellbeing

The Hamilton City Council and the University of Waikato are committed to improving the wellbeing of their

communities. An integrated indoor recreation facility supports exercise and social sport participation, with overall

wellness and good health outcomes.

Quality Education and Strong Institutions

With our sixth consecutive climb in the QS World University Rankings, The University of Waikato are ranked 266= in

the world. Our global reputation reflects the exceptional research of our talented academics and the impact it's

having on our world now and in the future, locally and internationally.

Our University stands proudly on the world stage as a provider of future-focused, international education and an

active player in global research. Our rankings reflect these strengths.

CIP Project Information Form Page

9 of 18

We are also ranked 72 in the world for research quality and impact – this places the University in the top 5% of all

globally ranked institutions.

Reduced Inequalities

This Integrated Indoor Recreation Facility and Pool will be accessibility friendly.

The access charges are to be set at an affordable level for social sport, and benchmarked against other community

facilities.

Partnerships

This is a significant partnership project between the Hamilton City Council and The University of Waikato and involves

collaboration with other local authorities, Sport Waikato and Sport New Zealand.

Value for Money

The Integrated Indoor Recreation Facility and Pool structures are well-designed simple ‘warehouse’ type structures

that are proposed to be constructed from a simple steel structure with lightweight metal cladding. This building has

been designed to be very flexible and will serve multiple indoor and outdoor sporting codes, and can provide a

recreation hub for all types of community clubs and organisations. It can easily accommodate regional competitions

and has a ‘show court’ capability.

The project has had a QS cost report done, and has had significant due diligence investigations of other facilities (in

New Zealand and internationally) and benchmarking across similar aquatic and recreation buildings. The University

of Waikato and the project team are confident this is a robust project that represents good value for money.

16. What is the expected contribution to local/ national employment?

17. What are the risks associated with the project? Each risk should be ranked as high, medium or low and include a

short explanation as to why it was given that risk rating.

Risk Low/

Med/ High Further commentary on risk

A. The risk of the project not commencing

within the advised timescale Med

The commencement of this project is dependent on

funding, and in the current environment the

University is reconsidering the prioritisation of its

capital programme. Funding through this

application will support the project to accelerate.

B. The risk the project will not be completed

on time, to cost or to specification Low

Not a difficult build, simple structure, high quality project and design team, but there may be build risk in terms of contractors and sub-contractors being forced into liquidation as a consequence of the current environment.

C. Risk the project will not realise the

benefits outlined above Low

Already a clear demonstrated community need, wide consultation undertaken and the construction market will be in need of projects.

Once operational the Integrated Indoor Recreation Facility and Pool will employ 3-5 of full time employees on an ongoing basis. As outlined in Q8 this project will generate 1,392 full-time employment years to be generated by the project expenditure. This calculation includes direct (399), indirect (586) and induced (407) employment. These figures are derived from input/output table analysis and sector based local GDP per employee sourced from Infometrics, PWC reports, Statistics NZ ANZSIC data and compiled in house.

CIP Project Information Form Page

10 of 18

18. Are there any other key project risks or any other information which would be useful background or context at this

stage?

Section 4: Impact of COVID-19

19. Please briefly comment on the likelihood and timing of the project recommencing once the COVID 19 Response

Level is suitable for construction to proceed

The University of Waikato has developed campus infrastructure for the community to utilise including:

• 5km shared pathway for pedestrians, cyclists, scooters that also supports the development of the University to

City cycle network connection.

• Student Recreation Centre (Unirec) has 3400 active memberships made up of 75% community use.

• The sports fields are heavily utilised by team and social sport for cricket, football, ultimate frisbee, rugby and

touch teams and is 85% utilised by community teams.

• Indoor cricket pitch and tennis courts are available for community use.

• The University partner pools project is 90% used by community with 20,300 pool visitors per season.

• The ‘Living Campus’ project is focused on upgrades of access ways and shelter, toilet facilities and playgrounds,

activating greenspaces and installing fitness stations which are accessible to the community.

The University of Waikato has many strong community partnerships including:

• The University is home to the Netball Waikato Bay of Plenty administration office

• The University has an established presence at the Avantidrome in Cambridge and the Adams High Performance

Centre in Mount Maunganui

• The University has strong relationships with The Chiefs’, Waikato Rugby Union, Midland Hockey, High

Performance Sport New Zealand, Sport Waikato and Northern District Cricket.

• Over 50% of New Zealand’s high performance sport athletes reside in the Waikato region.

• The University of Waikato is deeply committed to High Performance Sport, the advancement of Sport Science

and also the overall wellbeing and mental health benefits that sport participation provides to the community

and students alike.

The University is experienced in delivering collaborative projects that partner with councils, government, and

community to provide local amenity that is flexible, accessible, community driven and with strong project

governance.

[For example when the Government moves away from level 4 restrictions will you be able to immediately

commence/ restart the project?

• The University is committed to completing the business case during the Alert Level 4 period so that initial

funding applications can commence.

• However, the University of Waikato’s bottom line has been adversely affected by COVID19 and will need

to source external funding to proceed with the design and consenting phase of the project.

• If design was funded consultants are all working from home and have immediate capacity to start on

design.

What are the key conditions or barriers to commencing/ restarting the project? Please include cross reference to

Q21 response (below) if Government support is required for the commencement/restart]

• Key barrier in the current environment is funding for design and construction of project in its entirety.

CIP Project Information Form Page

11 of 18

20. What is the best estimate of the impact (financial/social/environmental) COVID 19 has had on the project and on

local industry associated with the project?

21. Has this project already, or is likely to benefit from already announced Government led financial support for

businesses (e.g. wage subsidy scheme/business finance guarantee scheme) Yes: ☐ No: ☒

- If Yes, please describe the scheme and extent of the support you have received/expect to receive.

22. Briefly outline the top 2-3 things that the Government can do to help progress this project. Please consider both

financial and non- financial levers such as lowering regulatory barriers, adjusting Government procurement

This pandemic is disrupting not only our domestic operations but our international connectivity – universities are

not just regional, we are connected globally, we have offshore operations and research projects overseas.

We have had around half of our students from China arrive in New Zealand before lockdown, but we don’t know

how long they will stay. For every dollar we receive from international students in fees, the economic benefit to

the region is approx. $3-$4, and nationally it’s higher than this. The impacts are wide-ranging from hospitality,

accommodation, tourism and general consumer spending.

If the border remains closed we don’t know what the impact will be on international students – yes we can offer

learning online but students come to New Zealand for the experience as well. We can expect Hamilton to see a

significant impact from this. Consequently the University needs to reconsider its investment in major capital

infrastructure projects.

In a regional context the construction industry in Hamilton and the neighbouring districts has grown rapidly in

recent years. Covid-19 and the related restrictions has and will continue to put significant pressure on the sector.

The sector requires certainty to move forward. There are about 8,700 people employed, or 9.1% of all jobs, in the

wider construction industry in Hamilton, including 1,600 in Civil engineering. It was one of the district’s fastest

growing employment sectors in 2019.

If the projects outlined in this PIF were funded and proceeded with urgency, it would give a number of businesses

that certainty and allow them to retain their workforce or plan for expanding it in the near future, and to continue

to invest in their business. Time is critical. Infrastructure New Zealand has estimated that there could be a 30%

reduction in staff “within 3 months under the current conditions”. To ensure that Hamilton and the Waikato

economies are able to recover quickly, guaranteed civil construction and infrastructure projects are a must.

Under level 4 alert, no construction work is being undertaken in Hamilton. Undetermined restriction on the

construction industry under a level 3 alert provide no certainty. This will likely mean that fewer workers are able

to be active on any project as to maintain social distancing. Also expect delays as people are affected by COVID-19

infection, self-isolation and increased mental health strain. Effective handover procedures may ameliorate this

situation, but these practices will not be well practiced in the industry to date.

Accelerating these projects will provide new jobs soon (as described in Section 8 above), and potential

opportunities for people employed in other parts of the construction sector, such as residential and commercial

construction, to move swiftly into other jobs if demand slows. It may also provide the right conditions for

companies to provide apprenticeships for those needing to move into the sector as a result of unemployment.

This is particularly important for Hamilton’s large youth population.

Not Applicable

CIP Project Information Form Page

12 of 18

practices, fast-tracking resource consent processes.

Please indicate clearly whether you consider any information you have provided in this form to be confidential. Confidential information will not be publicly released, other than in anonymised form, except to the extent that any release is required by law. We consider this application in its entirety to be confidential and ask that it is not released, even in anonymised form, without consultation.

- Funding support

- Expedite resource consents

- Alternative procurement pathways e.g. direct appointment

CIP Project Information Form Page

13 of 18

CIP Project Information Form Page

14 of 18

CIP Project Information Form Page

15 of 18

CIP Project Information Form Page

16 of 18

CIP Project Information Form Page

17 of 18

CIP Project Information Form Page

18 of 18