Statement of Performance Expectations for Financial Year 2026 – 2027
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
26 June 2026
Anne Urlwin - Director
26 June 2026
This Statement of Performance Expectations (SPE) sets out the performance expected of CRL Ltd for the period 1 July 2026 to 30 June 2027.
New Zealand’s longest escalatorKaranga-a-Hape Station
CRL Ltd was established to support the development of Auckland and New Zealand by delivering a large-scale railway infrastructure project. Once complete, the City Rail Link (CRL or the Project) will become part of Auckland’s wider transport network.
At the time of publishing this document, the CRL is expected to achieve Practical Completion and the handover of key assets to the Auckland Council Group and KiwiRail on 30 June 2026. Following this milestone, CRL Ltd’s priority for 2026/27 is to support Day One opening, while completing remaining obligations associated with the transition to operations. Auckland Transport and KiwiRail will determine the Day One opening date for passenger services.
For the year ending 30 June 2027, CRL Ltd’s role shifts from project delivery to post-completion management.
Key areas of focus include:
• Supporting a smooth transition from project completion and asset transfer to the commencement of passenger services through the CRL, including supporting Auckland Transport, Auckland One Rail and KiwiRail Holdings Ltd (KiwiRail)
• Managing residual delivery obligations to achieve Practical Project Completion under the Project Delivery Agreement with the Sponsors
• Completion of Stage 2 urban realm works at Maungawhau Station
• Managing the remediation of defects during the twoyear defect period
• Land legalisation processes and supporting Auckland Council with the disposal of surplus land
• Planning for and progressing the wind-up of the CRL Ltd entity.
• Building two new stations – Te Waihorotiu and Karanga-aHape
• 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 improvements at The Strand, Ōtāhuhu and Newmarket
• Funding rail network improvements for Henderson Station that will be delivered by KiwiRail and Auckland Transport
• Reinstatement and improvement of urban realm spaces around the stations and construction areas including Te Komititanga, Britomart Plaza and Beresford Square.
When CRL 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.
After handing over the CRL to its future operators, the project transitions into its post-completion phase. CRL Ltd will remain operational until after Final Project Completion is achieved. Final Project Completion occurs at the end of the defect period once all defects have been satisfactorily remediated, which will be at least two years following Practical Completion. This ongoing presence ensures that all outstanding defects are addressed and that CRL Ltd fulfils its remaining obligations under the Project Delivery Agreement with its Sponsors, Auckland Council and the New Zealand Government. During this period, CRL Ltd will focus on supporting the integration of CRL assets into the wider Auckland transport network, managing remediation activities, and overseeing legal processes related to land and asset transfer. Once all requirements are met and the project is fully complete, CRL Ltd is expected to wind up its operations.
Victoria St West entrance, Te Waihorotiu 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.
CRL Ltd’s Key Contracts and Relationships
CRL Ltd’s primary objective for the 2026/27 year is to support a smooth transition from project completion and asset transfer to the commencement of passenger services through the CRL, including supporting Auckland Transport, Auckland One Rail and KiwiRail.
Auckland Council and KiwiRail will be the owners of the CRL assets and along with Auckland Transport are responsible for commencing rail services through the City Rail Link. Auckland One Rail (AOR) is subcontracted by Auckland Transport to operate the metro rail network.
Through the One Client Alliance, the parties have co-ordinated to optimise the timeliness and costeffectiveness of their operations and have been fully involved in testing and commissioning, and the process of accepting the CRL assets for handover.
CRL Ltd is supporting Auckland Transport and KiwiRail in preparation for the opening of passenger services on the City Rail Link. This involves working closely with Auckland Transport, KiwiRail, and other partners, to provide assurance that operational systems, safety certification, and customer experience elements that CRL Ltd is responsible
for, are on track. This means proactively addressing and mitigating risks that could occur post-Practical Completion and sharing scarce specialist resources. In support of these goals, the parties co-locate at offices in the city centre and the Auckland Rail Operations Centre. The One Client Alliance will continue until after the CRL opens to passenger services to ensure a seamless transition. Leadership will transition to Auckland Transport and CRL Ltd will take a supporting role focusing on the delivery and closure of obligations under the Project Alliance Agreement and Project Delivery Agreement.
The main Project works fall under contracts C3, C5 and C7. These contracts are being delivered by the Link Alliance (CRL Ltd, Vinci Construction Grands Projects S.A.S, Downer NZ Ltd, Soletanche Bachy International NZ Ltd, WSP New Zealand Ltd, AECOM New Zealand Ltd and Tonkin & Taylor Ltd).
Photo: Matt Hart Auckland Council
These contracts and the Link Alliance structure continue through the post-Practical Completion defect period.
The works to expand and upgrade Henderson station are substantially complete and expected to be finalised and transferred prior to Day One opening of the CRL.
Table 1
Contractors engaged by CRL Ltd to help deliver remaining contracts for the Project and meet performance targets for 2026-2027.
Engagement of contractors to carry out defects remediation and to cover ongoing obligations under the Project Alliance Agreement.
The works included:
• 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.
C8 Henderson KiwiRail
Maungawhau Stage 2 Urban Realm Downer NZ
Construction of a third platform with new track formation and platform remodelling works at Henderson station.
Completion of urban realm works at Maungawhau station including completion of a public plaza from Shaddock Street to Mount Eden Road.
CRL Ltd’s Reportable Outputs
This section describes CRL Ltd’s outputs for the period 1 July 2026 to 30 June 2027 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 FY27 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 2026/27 financial year that is a non-reportable class of outputs.
The expected revenue and expense for each reportable output for the 2026/27 year is as follows:
the Auckland City Rail Link project by end 2025
The reportable output relating to the Targeted Hardship Fund ended on 30 June 2026.
In the 2026/27 year, 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
• Health and Safety
The Statement of Intent (SOI) describes targets and measures for the financial years 2025- 2027, which include “Community and Stakeholder Engagement” and “Sustainability and Social Outcomes”. Given that the project is substantially complete there are no relevant measures for these outcomes for 2026/27.
Community and Stakeholder Engagement
Once practical completion is achieved and project assets have been handed over, CRL Ltd’s focus in community and stakeholder engagement will shift away from active communication and updates about construction activities. Instead, the company will provide targeted information and support as needed to ensure a smooth transition for asset owners and stakeholders, addressing any concerns related to the handover process, support in managing public expectations and offering clarity on ongoing responsibilities or points of contact during the post-completion phase.
Sustainability and Social Outcomes
CRL Ltd has successfully achieved a number of sustainability and social outcomes. With practical completion of the C3 contract and handover of the main project assets, the target set in 2025/26 is no longer applicable for reporting against.
Output Measures and Targets for 2026/27
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 and Health and Safety. Consideration has been given to areas of interest for a wide range of stakeholders.
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 2026/27. 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 2026/27 performance targets have been amended to reflect the major milestone of Day One operations and shift of the entity to the
post-completion period. Measures which are no longer relevant following construction completion have been removed.
Project Delivery
Most of the Project’s non-Alliance contracts have been completed, most recently with Britomart Plaza completing in 2026. Henderson station upgrades and minor works around Maungawhau Station will continue until around December 2026.
Link Alliance streetscape and urban realm reinstatement works are also complete and have been re-opened to the public where possible. Beresford Square was re-opened to the public in October 2025 and Albert Street fully re-opened to traffic, including buses, in November 2025.
In the stations and underground, an extensive period of testing and commissioning has taken place. This has involved over 25,000 kilometres of train running and over 16,000 individual tests. Many parties have been involved in the testing programme as it has encompassed everything from signalling, cabling and complex station building management systems to fire alarms, emergency simulations and trial evacuations of pretend passengers. Testing of assets and systems is critical to ensure the safe and successful operation of the railway and stations. At the same time, an enormous amount of documentation has been prepared, for example with all the detailed plans of the built construction, documentation of all the testing procedures and results, and of all the consents required for construction and later for operation.
Practical completion of the main CRL project is expected to be achieved on 30 June 2026. The main CRL project assets will be handed over to the Sponsors (or their nominees) at that date. Following asset handover, CRL Ltd’s focus will be to support Auckland Transport, Auckland One Rail and KiwiRail to commence passenger services through the CRL.
The Project Delivery performance targets have been set to reflect the next stage of the CRL Ltd entity, involving supporting Day One passenger services, managing defect remediation, and carrying out land legalisation processes. As New Zealand’s largest infrastructure project, CRL Ltd will produce a lessons learned report to help inform future infrastructure projects.
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 costs to be incurred during the defects period over a 12-month period. The actual Project funding is recorded in the CRL Ltd financial statements Statement of Forecast Cash Flows. CRL Ltd will continue to maintain its tight discipline over corporate costs to ensure that the Company remains financially efficient, particularly in the post-asset handover period.
Health and Safety
With the CRL assets handed over and the project delivery obligations substantially completed, construction phase health and safety is no longer an area considered material for assessing CRL Ltd’s performance. The operating phase Final Safety Assurance Report is due following practical project completion.
Elevator shaft - Te Waihorotiu Station
Table 2
Performance targets and measures for each of CRL Ltd’s Output Measures for 2026-2027
Strategic area Outcome Performance Targets and Measures
Project Delivery Deliver a safe, operable, quality underground rail link and streetscapes to agreed configurations in a timely manner
• Auckland Transport and KiwiRail supported1 to achieve the commencement of Day One operations
• Practical Project Completion2 under the Project Delivery Agreement achieved
• All defects agreed at Practical Completion under the Project Alliance Agreement are remediated within the agreed timeframes3
• Maungawhau phase 2 urban realm works completed4
• All project land legalisation applications submitted to Land Information New Zealand Toitū Te Whenua
• Lessons learned report relating to the CRL project issued to Sponsors by December 2026
Funding Envelope
Achieve financial efficiency
• Deliver the Project within the approved budget of $5,644 million5
• Operate CRL Ltd’s corporate functions within the approved budget, reflecting the down-sizing of CRL Ltd following asset handover.
Health and Safety
Build an underground rail link that is safe for constructors, operators, maintainers, and users
• Issue the Final Safety Assurance Summary Report within three months of Practical Project Completion
The above is explained in detail in the Outcomes, Target Areas, and Measures section of the Statement of Intent.
1 The support to Auckland Transport and KiwiRail will be measured with reference to the following: orderly transition of One Client Alliance leadership to Auckland Transport around Practical Completion; continuation of funding in accordance with the Stakeholder Alliance Participants Services Agreement; retention of key CRL Ltd employees throughout the period to Day One opening; and orderly transition of communications responsibility and relevant stakeholder relationships.
2 Practical Project Completion is defined in the Project Delivery Agreement between CRL Ltd and Sponsors and refers to the completion of all of CRL Ltd’s scope including the stations, tunnels and works on the wider rail network.
3 Practical Completion is defined in the Project Alliance Agreement and refers to the completion of construction under the C3/C5/C7 contract. The Schedule 22 Certificate of Practical Completion appendices set out the Alliance Defects and their agreed remediation dates. Achievement of this measure will be assessed with reference to evidence of approved defect closure.
4 Completion means that the project’s practical completion certificate has been issued.
5The 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.
Forecast Financial Statements
The forecast financial statements (pages 15 - 18) 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 2026/27 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.
Wellesley St entrance ticket gateline, Te Waihorotiu Station
City
Rail
Link
Statement of Forecast Comprehensive Revenue and Expenses
For the year ending 30 June
Deficit for the year (138,205) (86,910) Other comprehensive revenue and expense -Total comprehensive revenue and expense for the year (138,205) (86,910)
6Following the transfer of CRL to its ultimate owners, staff and other corporate costs will no longer be capitalised. While overall staff costs will reduce in 2026/27, this results in an increase in the amount recorded as operating expenditure. Refer also to the Statement of Forecast Cash Flows.
As at 30 June
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
Notes to the Forecast Financial Statements for the year ending 30 June 2027
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
Defect expenses
Transfer of assets accounted through equity
Vested assets expense
Employment expenses
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. The majority of funds are received at the beginning of each quarter.
CRL Ltd has a residual amount of capital project spend to deliver the remainder of the Project. Projected costs and timing of expenditure are based on plans and quotations that were current when these forecasts were prepared.
The quantity and complexity of defects that will be identified in the Defect Period and the cost to remediate them has been estimated based on the Link Alliance’s forecast and comparisons to other projects as a percentage of total cost.
The Project is assumed to achieve Practical Completion during the 2025/26 financial year and the completed assets transferred to Sponsors or their nominated entities. Further land assets are assumed to be transferred to Sponsors or their nominated entities in the 2026/27 financial year. The forecast value of transferred assets accounted through equity is based on the capital expenditure assumptions above.
Remaining project assets are assumed to be vested to Sponsors during 2026/27, including the C8 Henderson station upgrade works and Stage 2 Urban Realm Maungawhau works. The forecast value of vested assets is based on the capital expenditure assumptions above.
Forecast costs assume that the organisational structure will change over the course of the year, reflecting achieving the milestone of handover of the main project assets and the reduction in the entity’s activities. All costs for employment are to be expensed and included in the Statement of Forecast Comprehensive Revenue and Expenses.
Opening equity
Estimated opening equity assumes 2025/26 net deficit of $138.2 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 2027
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.
Interest Revenue
Interest revenue is calculated on the forecasted cash balances held at bank and short term deposits maturing within less than three months.
General Expenses
General expenses include costs such as operating leases, rates, directors’ fees, telecommunications, and other office operating costs.
Defect Expenses
The cost of remediating identified defects is expensed as incurred as there is no future economic benefit anticipated from remediation.
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.
Assets held for distribution
An asset is classified as held for distribution if the asset is available for distribution in its present condition, the CRL Ltd Board has approved the asset for handover and the handover is likely to be completed within one year of classification as held for distribution. The asset is measured at the lower of its carrying amount and fair value less costs to distribute. An asset is not depreciated or amortised while classified as held for distribution. Assets may be distributed by vesting the asset or as a capital distribution depending on the form of the transfer.
Assets held for distribution in the forecast include land and project capital costs incurred during the period which meet the above criteria for classification.
Capital Work in Progress
With the majority of ‘Capital Work in Progress’ being transferred in 2025/26, balances included in 2026/27 will largely relate to Maungawhau stage 2 works for the reinstatement of urban realm and any residual expenditure on other contracts. Most capital expenditure incurred is expected to be transferred to Sponsors or their nominated entities during the period.
Capital work in progress is recognised at cost less impairment and is not depreciated.
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 5,260,280 shares as of 1 July 2026 and is expected to be 5,450,280 shares as of 30 June 2027.
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:
• Forecast acquisition of capital work in progress is estimated based on projected costs and timing of expenditure that were current when the forecast was prepared. The projected costs include estimates of the final financial outcome of the contract requiring a significant number of underlying assumptions, including a view on the likelihood of any risks eventuating and their possible financial implications. The final financial outcome remains uncertain at this stage of the project and therefore the actual outcome may be different.
