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Crl Sponsors Agreement

This historic step showed that both the central government and local authorities agreed that the construction of the CRL was a priority to meet Auckland`s population and transport market growth and to advance its economy. “Last January, the Prime Minister announced that the government would accelerate the delivery of the CRL to address Auckland`s transportation problems. This agreement is an important step in the project and underscores the government`s commitment to keep Auckland moving,” said Mr Joyce. Finance Minister Steven Joyce and Transport Minister Simon Bridges today signed agreements with Auckland Mayor Phil Goff to launch City Rail Link Limited to take responsibility for the delivery of Aucklands City Rail Link from tomorrow, marking the next step towards transforming Auckland`s public transport system. “The Crown and Auckland Council has signed agreements to transfer the project to CRLL and has formalized its partnership to jointly fund and complete it until it is completed,” said Mr Joyce. The signing of the agreement took place on Victoria St, where an 18-metre-deep hole is dug, so that a small tunnel machine can be launched as part of the task of moving services. The hole is currently 13m deep, so there is still a small way to go. The photo below is from EmergingAuckland and there are more in the galleries — plus many other projects. The signing follows announcements made by CRL Ltd last April by Link Alliance as a preferred bidder and details of a $1 billion increase in the project to $4.4 billion after a rigorous and comprehensive review of project costs.

The two sponsors of the project – The Crown and Auckland Council – then approved CRL Ltd`s request for additional funding. The result is much better than some feared, and the government would have paid only 50% of the remaining costs after the first work or as indicated in January, that they could continue the project, but would not have released funds until 2020. There was a lot of media talk about the cost of the project yesterday, with most reports going up to $3.4 billion, but as is often the case in these situations, it is a bit alarmist. The government said it thought it would cost somewhere between $2.8 billion and $3.4 billion and reflects more detailed design work that has taken place. Len Brown`s comments should remind us that the cost of the $2.5 billion project has always been -20%. The fees that the government and Council will ultimately have to pay will be developed as part of the more detailed sponsorship agreement. Of course, much will depend on how the tenders are conducted. Another important milestone was reached yesterday on the City Rail Link (CRL) when the government and council signed their first formal agreement on joint cooperation and funding of the project.

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