NZ: National Infrastructure Plan to provide a 30-year roadmap

Chris Bishop, National Infrastructure Plan, new zealand,

September 2, 2024

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Work is underway now to develop the 30-year National Infrastructure Plan which will outline New Zealand’s infrastructure needs over the next 30 years.

The 30-year National Infrastructure Plan will ensure greater stability of infrastructure priorities to help New Zealand plan for, fund and deliver important projects, Infrastructure Minister Chris Bishop says.

“National campaigned on developing a 30-year national infrastructure plan, and I am pleased to outline our progress toward delivering it in Government.

“Work is underway now to develop the 30-year National Infrastructure Plan which will outline New Zealand’s infrastructure needs over the next 30 years, planned investments over the next 10-15 years, and recommendations on priority projects and reforms to fill the gap between what we have now, what we will have soon, and what we’ll need in future.

“Led by New Zealand’s Infrastructure Commission, the Plan will focus on ensuring we make better use of our existing assets, and that any new investments provide value for money. It will build on the work the Commission has already done on the New Zealand Infrastructure Strategy.

“In developing the National Infrastructure Plan, the Infrastructure Commission will work across central and local government, along with the private and wider infrastructure sector.

The plan will consist of four components:

1. An Infrastructure Needs Assessment which provides analysis of New Zealand’s long-term needs – and what we can afford – across the next 5-30 years
2. A strengthened National Infrastructure Pipeline which will provide a national view of upcoming projects in the next ten years
3. The Infrastructure Priorities Programme (IPP) which will involve a structured independent review of unfunded projects and initiatives, and
4. Priority reforms, which will improve the way we select, invest in, deliver and maintain our infrastructure.

“The IPP picks up lessons from Australia’s Infrastructure Priority List which has helped them build political consensus on an enduring pipeline of priorities – exactly what we need in New Zealand.

“The Infrastructure Commission is today launching their IPP website which opens the Priorities Programme up to everyone. The private sector, non-government organisations, local government and communities are all welcome to submit their proposals for infrastructure priorities. The first round of priority proposals will be published in April next year, and the second round in June.

“To have long-term stability, it’s important that the National Infrastructure Plan has bipartisan buy-in. To this end I have written to the Infrastructure spokespeople of each party represented in Parliament, inviting them to be formally briefed by the Infrastructure Commission on the development of the 30-year National Infrastructure Plan. I intend that these briefings be offered every six months.

“I will also write to Parliament’s Business Committee asking that we hold an annual special debate on the National Infrastructure Plan. While this debate won’t change the contents of the plan, because it is independent, it will show areas where Parliamentary parties agree, where we don’t, and where there is room to compromise in the best interests of New Zealanders.

“I’m under no illusions that this process will be easy, but our Government thinks long-term and has big ambitions for taking New Zealand forward. The National Infrastructure Plan will be an important part of that progress.”

The National Infrastructure Plan will be delivered in December 2025.

National Infrastructure Agency

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.”

Source: New Zealand Government

Source: New Zealand Government

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