Hon Chris Bishop
Minister for Infrastructure

The Government’s new National Infrastructure Agency will be established this year, unlocking access to more capital for infrastructure and strengthening the Government’s private finance and commercial capability, Infrastructure Minister Chris Bishop says.

“From 1 December, Crown Infrastructure Partners (CIP) will be repurposed to be the new National Infrastructure Agency (NIA).”

Cabinet has agreed that the NIA will:

• Act as the Crown’s ‘shopfront’ to receive unsolicited proposals and to facilitate private sector investment in infrastructure,
• Partner with agencies, and in some cases, local government on projects involving private finance,
• Administer Central Government infrastructure funds, and
• Continue the work CIP is already doing.

“The NIA will help facilitate private capital into New Zealand’s infrastructure to help close our infrastructure gap faster,” Mr Bishop says.

“So, if the private sector wants to propose a project, or is looking to invest in New Zealand infrastructure – the NIA will be open for business very shortly.

“There is a clear capability gap inside government in utilising private finance, alternative funding, and complex procurement models such as build-operate-transfer models, Public Private Partnerships, developer levies, beneficiary levies, value uplift mechanisms, and value capture mechanisms. The NIA will now provide that expertise and commercial capability, and will work by deploying expertise into agencies that are working on projects that include one or more of these arrangements.

“The previous government rejected private capital outright. Our approach is to be smart about private capital and utilise it in a way that unlocks investment and brings more maturity to the design, build, and maintenance of projects.

“Cabinet has decided that Crown agencies and entities will be mandated to partner with the NIA on all projects that could involve private financing, alternative funding, and complex procurement. Agencies will be required to engage with the NIA early about the potential for involving private financing - with accountability for those projects remaining with the lead agency.

“This Government has set out an ambitious plan to capitalise on innovative funding and financing tools such as tolling, value capture, and levies to help ensure that those who benefit from publicly funded infrastructure also contribute to the cost of it. The NIA will be involved in utilising these tools, including for local government, and over time, will help deliver Regional Deals.”

“The NIA will also administer central government infrastructure funds. CIP currently administers around ten funds – but we will explore the NIA doing more in this space once we complete our review of all existing grants and funds across government.

“As part of its administration of central government infrastructure funds, the NIA will connect infrastructure investors to relevant funds to avoid missed investment opportunities and will ensure the process for private investment in Crown projects is transparent, consistent, and efficient.

“The exact size of the new NIA is being worked through now as part of the establishment process, but is expected to be around 60 staff in 2025 with an annual budget for base operating expenditure of around $26 million (this includes CIP’s existing operations). This is a 50% increase in staff, and a 44% increase in base operating funding.

“The increased funding for the NIA has been reprioritised from within the existing infrastructure system, and includes $5 million in establishment funding from Budget 2024.

“Establishing the NIA is a part of broader work to simplify and reorganise the Crown’s central infrastructure system.The public sector infrastructure system is confusing and contains duplication and inefficiency.”

Cabinet has therefore also agreed to clarify the roles and responsibilities of other parts of the Crown’s infrastructure system by confirming that, from 1 December:

• The Infrastructure Commission will retain its role as the Government’s independent strategic advisor on infrastructure matters – focusing on long-term strategy.
• The Treasury will assume the Commission’s responsibility for Public-Private Partnership (PPP) policy, and take primary responsibility for supporting the Minister for Infrastructure
• Rau Paenga (Crown Infrastructure Delivery) will be mandated to provide project delivery services to Crown agencies that have low infrastructure delivery capability.

“The Treasury, CIP, Rau Paenga and the Infrastructure Commission will work together to implement these changes by 1 December. Shareholding Ministers – including myself – will work closely with CIP during their transition to make sure we are setting up the NIA to succeed and hit the ground running.

“I am confident that the NIA will unlock more capital and lift capability in the infrastructure system. Both are necessary to deliver the projects that New Zealand needs, and I am looking forward to seeing it up and running.”

© Scoop Media