City Rail Link Statement of Performance Expectations 2025-26_Issu
City Rail Link Limited Statement of Performance Expectations for Financial Year 2025 – 2026
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 2025 to 30 June 2026.
CRL Ltd was established to support the development of Auckland and of greater New Zealand by delivering a large-scale railway infrastructure project. Following its completion, the City Rail Link (CRL or the Project) will become part of Auckland’s wider transport network.
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 the ultimate asset owners. The majority of assets will be transferred to Auckland Transport and KiwiRail Holdings Ltd (KiwiRail).
The top priority for CRL Ltd in 2025/26 is to achieve completion within the project budget. The Statement of Performance Expectations for 2025/26 reflects that milestone. CRL Ltd will also be focussed on operational readiness, working with Auckland Transport and KiwiRail to prepare for opening the CRL. CRL Ltd has a finite life span and will exist for as long as required for the Project and as determined by its shareholders.
Day One opening for passenger services will be determined by Auckland Transport and KiwiRail.
• Building two new stations – Te Waihorotiu and Karanga-a-Hape
• Waitematā (Britomart) Station being transformed into a through station and significantly redeveloping Maungawhau Station
• Capacity for nine-car trains
• 100-year design life for stations, tunnels and civil structures
• Performing wider rail network improvement at The Strand, Ōtāhuhu and Newmarket
• Funding rail network improvements for Henderson Station that will be delivered by KiwiRail and Auckland Transport
When CRL is complete and becomes part of the wider transport network, it will contribute to a more vibrant and better-connected Auckland
- with more regular trains at peak times and increased travel choices, supporting the ongoing growth of the city.
CRL’s first test train as it travels through Karanga-a-Hape Station
CRL Ltd’s Corporate Structure
CRL Ltd commenced operations on 1 July 2017 to manage the delivery of the Project.
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.
The company’s Sponsors – the New Zealand Government and Auckland Council – jointly fund 50 percent each of the Project cost. CRL Ltd reports regularly to its Sponsors, as set out in the Project Delivery Agreement.
CRL Ltd’s shareholders are the Crown (51 per cent voting shares), which acts by and through the Ministers of Finance and Transport, and Auckland Council (49 per cent).
The shareholders 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 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 employment policies for CRL Ltd
The responsibility for management, operation, and administration of CRL Ltd rests with the company’s Chief Executive, who is accountable to the Board. The Chief Executive has appointed a leadership team to direct and oversee the Project and its associated workstreams.
Artist Dr. Johnson Witehira with his ventilation shaft cladding in Kingston St (Te Waihorotiu Station)
CRL Ltd’s Key Contracts and Relationships
CRL Ltd’s primary goal for the 2025/26 year is to complete the Project and handover the assets for integration into the existing transport network. To ensure this will be successful, CRL Ltd is collaborating with the Project’s delivery partners.
Auckland Transport and KiwiRail Holdings Ltd will be the Project’s main asset owners and will become responsible for providing rail services through the City Rail Link. Auckland One Rail (AOR) has been subcontracted by Auckland Transport to operate the metro rail network.
Through the One Client Alliance, the parties co-ordinate to optimise the timeliness and costeffectiveness of their operations and to be involved in testing and commissioning, ensuring full visibility during the handover process. CRL Ltd is supporting Auckland Transport and KiwiRail Holdings Ltd in preparations for the opening of passenger services on the City Rail Link. This involves proactively addressing and mitigating risks that could occur
post practical completion and sharing scarce specialist resources. To further support these goals, the parties are co-located with the Link Alliance in a shared office in Newmarket.
CRL Ltd also co-ordinates closely with Auckland Council on streetscapes, urban realm reinstatement and regulatory matters through regular interactions, and with the New Zealand Transport Agency Waka Kotahi as the rail safety regulator.
The majority of Project works fall under contracts C3, C5 and C7. These contracts are being delivered by the Link Alliance, of which a structure is below. Contracts active in the 2025 – 2026 period are listed in Table 1 (Page 11).
Project Alliance Board
INDEPENDENT CHAIR
TWO REPRESENTATIVES
City Rail Link Ltd
REPRESENTATIVES FROM EACH OF THE OTHER ALLIANCE PARTICIPANTS
Link Alliance
GOVERNS
ONE REPRESENTATIVE FROM EACH OF
Auckland Transport and KiwiRail
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.
Architect Gillian Hatch with Maungawhau Station’s decorative red glass triangles.
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 multiple channels. The Sponsors established a $12 million Targeted Hardship Fund to alleviate financial hardship faced by small businesses due to construction disruption within the C3 affected area.
As of 31 March 2025, a total of $9.1 million from the Targeted Hardship Fund has been paid out to 65 eligible businesses.
Now that construction has mostly been completed and streetscapes are returning to normal operation, the extent of disruption has reduced. Correspondingly, the level of financial support available through the Targeted Hardship Fund is also decreasing and will eventually end.
Workers laying paving stones around Karanga-a-Hape Station’s Beresford Square entrance.
Transition to Post-Practical Completion
After Practical Completion of the CRL and handover of the assets to the ultimate asset owners, the Project will then enter a two-year defects liability period where the Link Alliance will remediate any defects in assets they have delivered. CRL Ltd will take steps to manage the retention of key staff required to manage the remediation of defects and other activities required through this period. As New Zealand’s largest infrastructure project, CRL Ltd will produce a lessons learned report to help inform future infrastructure projects.
Table 1
Contractors engaged by CRL Ltd to help deliver remaining contracts for the Project and meet performance targets for 2025-2026.
Design, procure, and deliver rail and station infrastructure and systems across the full geographic area of CRL from just south of Wyndham St to the North Auckland Line (NAL) at Mt Eden.
Works include:
• Design and construction of tunnels and two new central underground stations
• Complete redevelopment of the station at Maungawhau
• Connection of tunnels into the existing North Auckland Line live rail corridor environment
• Installation and integration of rail systems
• Testing and commissioning from Waitematā Station (Britomart) to Maungawhau Station
• Reinstating the urban realm and streetscapes in certain areas around stations.
Henderson Station new track formation and platform remodelling works. This work will be funded by CRL Ltd and delivered by KiwiRail and Auckland Transport.
CRL Ltd’s Reportable Outputs
This section describes CRL Ltd’s outputs for the period 1 July 2025 to 30 June 2026 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 FY26 Project funding. Per this appropriation, CRL Ltd has one reportable output class: to “Deliver the Auckland City Rail Link project by end 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 2025/26 financial year that is a non-reportable class of outputs.
The expected revenue and expense for each reportable output for the financial year 2026 is as follows:
Administer the Targeted Hardship Fund of $12,000,000 revenue and expenditure. THF cash flow nets to nil in the CRL Ltd financial statements. 2
1 Includes an estimated $4.1 billion of non-cash vested asset expense on transfer of remaining assets to Sponsors and the ultimate asset recipients.
2 This appropriation is limited to the Crown’s share of $6,000,000 for the administration costs and payments to eligible businesses for hardship associated with sustained and major disruption relating to the C3 package of works for the construction of the Auckland City Rail Link or as otherwise directed by Sponsors.
In the financial year 2026, 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
Output Measures and Targets for 2025/26
Statement of Compliance
CRL Ltd’s SPE 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 SPE 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 SPE, 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 and matters considered important to shareholders including Delivery, Funding Envelope, Community and Stakeholder Engagement, Health and 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 SPE for 2025/26. Together, these documents define key measures and targets for the Project. The performance targets within the SPE are aligned with those in the Statement of Intent.
The 2025/26 performance targets have been changed to reflect the major milestones of Practical Project Completion and asset handover anticipated during the 2025/26 year. Measures which are no longer relevant following construction completion have been removed.
Project Delivery
The last of the Project’s early non-Alliance contracts were completed early in 2025. These were Waitematā Station (Britomart)’s C9 works and Newmarket Junction C8 works.
Now that the Link Alliance has finished heavy civil and tunnelling works and has energised the stations, tunnels, and started testing with moving trains, the current Project focus is on the testing and commissioning of systems for safe and successful operation of the railway and stations and rectifying defects. Some architectural features are still to be installed, and some urban realm work is still underway – these works are expected to be completed during the summer of 2025/26.
The completion of the CRL Albert Street streetscape works around Te Waihorotiu Station, including full reopening of the road and footpaths, is scheduled for December 2025. The completion of streetscape reinstatement on the roads and footpaths around Maungawhau Station is scheduled for August 2025, noting that road closures in the immediate vicinity of the station may continue until the CRL opens.
The Project Delivery performance targets have been aligned to reflect the milestone of practical completion of Link Alliance works and the consequential transfer of designations and handover of assets in the 2025/26 year.
At the time of this document, CRL Ltd is reviewing the Project delivery schedule and will subsequently discuss with Sponsors as to whether variations to the Project Delivery Agreement are required.
Funding Envelope
This target is to deliver the project within the budget established by the Project Delivery Agreement target project cost. 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.
Community and Stakeholder Engagement
CRL Ltd’s Communications and Stakeholder Engagement team keeps neighbours, stakeholders and the wider public informed about Project benefits and potential construction impacts. Engagement takes place through media, social media, events and tours and direct engagement with affected stakeholders.
Stakeholder engagement includes operation of the Targeted Hardship Fund to fulfil Sponsors requirements and communicating with small businesses about their eligibility for funding.
Health and Safety
Health and safety continues to be fundamental to the project. For 2025/26, the target for the Total Recordable Injury Frequency Rate (TRIFR) will be maintained “at or below six injuries per million hours worked”, with the aim of leveraging the Project to raise the overall standard of health and safety performance in the New Zealand construction industry.
Sustainability and Social Outcomes
CRL Ltd has successfully achieved a number of sustainability and social outcomes. The remaining target reflects our commitment to reducing emissions until project completion, although we are tracking to fall slightly short of the 25 per cent reduction.
Table 2
Performance targets and measures for each of CRL Ltd’s Output Measures for 2025-2026
Strategic area Outcome
Project Delivery
Deliver a safe, operable, quality underground rail link and streetscapes to agreed configurations in a timely manner
Performance Targets and Measures
• C3/C5/C7 rail and station infrastructure complete*
• Transfer of all designations relating to the operation of rail and station infrastructure to the ultimate asset owners
• Acceptance by Auckland Transport and KiwiRail of the assets (as ready for in revenue service), with approval of the Sponsors
• Address surplus land in accordance with CRL Ltd’s statutory duties and obligations and consistent with Sponsors’ directions
Funding Envelope
Achieve financial efficiency
• Deliver the Project within the approved budget of $5,644 million**
• Operate CRL Ltd’s corporate functions within the approved budget
Community and Stakeholder Engagement
Health and Safety
Deliver a high level of communication and engagement
• Achieve >4,000 likes on social media posts, >15,000 direct views of videos, 10 media releases and public participation through events (target 4)
• Targeted Hardship Fund payments made to successful applicants within 30 days of CRL Ltd receiving a completed application
Sustainability and Social Outcomes
Build an underground rail link that is safe for constructors, operators, maintainers, and users
Achieve sustainability excellence including social outcomes
• TRIFR at or below six injuries per million hours worked
• Issue the Final Safety Assurance Summary Report within three months of Practical Project Completion
• C3 to achieve 25 per cent reduction (versus design base-case) in construction and operational energy-related greenhouse gas emissions (tCO2e)
The above is explained in detail in the Outcomes, Target Areas, and Measures section of the Statement of Intent.
* Completion means that Practical Completion per the Project Alliance Agreement has been achieved.
** The approved budget of $5,644 million excludes future property sales proceeds that will flow directly to Sponsors and are expected to reduce the overall cost of the Project to $5,493 million, being the Target Delivery Cost amount stated in the Project Delivery Agreement. This amount includes the defect liability period and ongoing operating costs of CRL Ltd. There has been no change in the total cost of the Project.
Performing a
Forecast Financial Statements
The forecast financial statements (pages 17–20) 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 2025/26 financial year.
CRL Ltd is funded by the Sponsors to deliver the Project. Under the terms set out in the Project Delivery Agreement, 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 (the day-to-day running of CRL Ltd) and project expenditure (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.
mahi ōkawa to bless the tunnels ahead of train testing.
City Rail Link Statement of Forecast Comprehensive Revenue and Expenses
For the year ending 30 June
(155,599) (4,198,309)
City Rail Link Statement of Forecast Financial Position
For the year ending 30 June
(1,101,296) (5,299,605)
equity 3,810,984 15,675
City Rail Link Statement of Forecast Changes in Equity
For the year ending 30 June
City Rail Link
Statement of Forecast Cash Flows
For the year ending 30 June
(7) (18)
Notes to the Forecast Financial Statements for the year ending 30 June 2026
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 (NZ GAAP) and the Companies Act 1993
• In accordance with PBE FRS42 and NZ GAAP 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
Capital expenditure
Vested assets expense
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.
CRL Ltd is undertaking a programme of capital spending to deliver the Project. Projected costs and timing of expenditure are based on plans and quotations that were current when these forecasts were prepared.
The Project is expected to achieve Practical Project Completion during the 2025/26 financial year and the completed assets are forecast to be vested (handed over) to Sponsors or their nominated entities (Auckland Transport and KiwiRail) at the time of legal transfer. The accounting treatment for the final transfer of Project assets has not been finalised at the time of preparing this SPE. The forecast value of vested assets is based on the capital expenditure assumptions above.
Employment expenses
Opening equity
Forecast costs assume that the organisational structure will change over the course of the year, reflecting achieving the milestone of Practical Project Completion and the reduced requirement for certain capabilities. 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.
Estimated opening equity assumes 2024/25 net deficit of $155.6 million. This impacts on estimated amounts of cash in hand and net assets.
Notes to the Forecast Financial Statements for the year ending 30 June 2026
Significant Accounting Policies
The financial statements contained in this document are prospective and, by their nature, contain assumptions which may lead to material differences between the prospective financial statements and the actual financial results prepared in future reporting periods. CRL Ltd has undertaken a review of its financial models, and believes they remain fit for purpose in assisting CRL Ltd in preparing prospective financial statements. The prospective statements for CRL Ltd are subject to significant management judgement relating to the timing and quantum of the investments, and the prospective information reflects the best information available to management.
Project Funding
Project costs (capital in nature and which create an asset for CRL Ltd, as well as operating costs for CRL Ltd’s day-to-day running and management) are funded by a share issue to the Crown and Auckland Council. This funding is not recognised as revenue in the forecast financial statements.
Rental Revenue
Other revenue generated by CRL Ltd is from rental income from properties required for the project and will be recorded as revenue.
Interest Revenue
Interest revenue is calculated on a proportion basis for the surplus cash balances throughout the forecast.
General Expenses
General expenses include costs such as operating leases, rates, directors’ fees, telecommunications, and other office operating costs.
Foreign Currency Transactions
Foreign currency transactions are translated into NZ$ (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, building, subterranean land, 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 until at or around Practical Project Completion, when it will be vested to the ultimate owners. Assets are vested at their carrying value.
Capital work in progress is recognised at cost less impairment and is not depreciated.
Notes to the Forecast Financial Statements for the year ending 30 June 2026
Depreciation
Land, Buildings and Subterranean Land are held for the development of rail tunnels and stations and are 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 4,912,280,000 shares as of 1 July 2025 and is expected to be 5,315,280,000 shares as of 30 June 2026.
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: 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) to the Sponsors or their subsidiaries as those assets are commissioned for use. Completion of the Project is forecast to occur in the 2025/26 financial year. Project assets will transfer without compensation and hence will be treated as vested asset expense in the period in which the asset transfer occurs. Within FY26, CRL Ltd expects to vest assets of $4,122,666,000.
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
Patrick Brockie (Chief Executive)
Madan Anand
Wayne Cooney
Sumi Eratne
Sarah Hampton
Emma Kurtovich
Russell McMullan
Nicola Mills
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 3, Tower B, 12 Morgan Street
Newmarket
Auckland 1051
Email: info@cityraillink.govt.nz
Web: www.cityraillink.co.nz
Phone: 0800 275 8255
Karakia to bless the reveal of Karanga-a-Hape Station’s facade.
