To build more quality infrastructure and to guarantee a strong project pipeline, New Zealand must again welcome Public Private Partnerships back into its infrastructure funding mix. That’s the strong message from Infrastructure New Zealand as it releases its paper, Developing and refining the Public Private Partnership model and other infrastructure financing tools in New Zealand.

“PPPs are another tool in our country’s toolkit for building both large-scale projects and smaller community or social infrastructure,” says Infrastructure New Zealand Chief Executive Nick Leggett.

“PPPs won’t be suitable for all projects, but it’s time to open the door to them again and refine our approach so we get the greater benefit of private sector expertise and a contracted commitment to maintaining infrastructure assets across their whole lives.”

A balanced panel of experts from across Infrastructure New Zealand’s membership spent many months putting the paper together, with the aim of putting the private sector’s views to politicians and officials who will be in the midst of preparing advice.

“We recognise that there is no ‘silver bullet’ for the Government or industry. However, New Zealand must build faster and get greater certainty in its pipeline and efficiency in what it spends on infrastructure,” Leggett says.

“We are a small country, and we traditionally don’t maintain the assets we have already got. PPPs drive better whole-of-life outcomes by ensuring assets are designed, delivered and managed in a way that maximises their performance.”

The Infrastructure New Zealand report also offers options for the faster delivery and more effective maintenance of social infrastructure like schools and hospitals.

“We know these social facilities are under major pressure. A fully developed PPP model is far too complex for smaller scale infrastructure projects, however by simplifying the process and providing better commercial terms the industry believes we can enable greater participation from the local contractor market,” Leggett says.

“This could be achieved through a PPP-Lite Model for smaller core public assets that includes consecutive project bundling or the ability to add additional projects into the same project agreement.”

“Refining the PPP Model for large-scale projects can also help drive procurement and make these projects more attractive to private sector partners. For example, through process improvements and a renewed focus on ‘big picture’ outcomes some wins can be gained that make PPP deals easier.”

The infrastructure industry recognises that not every project will suit a PPP, but these refined approaches present New Zealand with a range of options when it comes to harnessing private sector capability and help sharpen the tools available to accelerate our future infrastructure delivery.

“Infrastructure New Zealand recommends the Government adopt this menu of PPP models to boost the development of both large and small-scale nation-building infrastructure. We have got to do better when it comes to delivery,” says Leggett.

“This is a positive industry proposal to help our country move faster.”

Developing and refining the Public Private Partnership model and other infrastructure financing tools in New Zealand is a paper developed by Infrastructure New Zealand’s Funding & Financing Working Group for the consideration of Government.

Note: Infrastructure New Zealand is Aotearoa’s peak membership organisation for the infrastructure sector. We promote best practice in national infrastructure development through research, advocacy, and public and private sector collaboration. We promote public and media discussion on issues of importance to the infrastructure sector. Our membership is comprised of around 140 organisations, including government agencies, consultants, contractors, financiers, utilities, and academics. These organisations employ approximately 150,000 people in infrastructure-related roles and are united in their commitment to creating a better New Zealand through outstanding infrastructure.

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