- Hon Chris Bishop
- Simon Court
Updated guidance for Public-Private Partnership projects in New Zealand will provide greater clarity and consistency to the private sector and government agencies, Infrastructure Minister Chris Bishop and Under-Secretary Simon Court say.
"Refreshing New Zealand's PPP model is an important part of our plan to deliver, maintain, fund, and finance infrastructure in smarter ways, and attract international capital and expertise to New Zealand projects," Mr Bishop says.
"PPPs in New Zealand are not new. Eight PPP projects have been developed since 2011, including three correctional facilities, two Roads of National Significance state highways, and three bundles of primary and secondary schools.
"The service delivery outcomes achieved through these projects to date have been positive, in many cases outperforming similar projects delivered using other methods. Standardised or modular designs from PPP projects and asset management lessons have also begun to be implemented elsewhere.
"In November 2024, the Government released a Blueprint to the market outlining how the government will approach future PPPs. The Blueprint took into account lessons learned on our existing PPP projects, as well as lessons learned from other jurisdictions, and set out several improvements to the New Zealand model."
"The response to the 2025 Infrastructure Investment Summit demonstrates why it is so important to have a robust PPP approach - it puts New Zealand back on the map for the global talent, innovation, and investment our infrastructure sector is hanging out for," Mr Court says.
"For years New Zealand has limped along with an overloaded infrastructure pipeline and buildings falling to bits, while countries like Australia have been getting on with the job. Their PPPs are delivering durable schools, hospitals, and transport networks. That's the level we should expect too - infrastructure that actually gets built, lasts, and serves people well.
"The Treasury's updated guidance builds on the PPP Blueprint is designed to support government agencies delivering PPPs, and its public release helps ensure agencies take a consistent approach that is transparent and can be clearly understood by the market."
Some of the key elements in the updated guidance include:
Bid cost reimbursement - guidance for agencies on how to allow for bid cost reimbursement and ensure the right level of information is sought from bidders through procurement to help reduce the burden involved in bidding and encourage competition.
Price validation - guidance on how and when price validation can occur during the procurement process, including requirements for agencies to undertake robust due diligence of cost estimates to ensure the price is set appropriately.
Works completions regime - introducing a more flexible and responsive works completion regime that includes new elements that are open for adoption on a project-by-project basis, such as split and staged completion.
Expansions and augmentations - introducing the ability for expansions and augmentations of PPP projects on a project-by-project basis, provided value for money can be demonstrated.
Crown capability and resourcing - guidance for agencies on the capability and resourcing they need to put in place when delivering a PPP.
Crown capital contributions - guidance on how capital contributions can be considered and assessed so that they can be used when they improve overall project outcomes.
Notes to Editor:
The guidance can be found on the Treasury website: https://www.treasury.govt.nz/information-and-services/public-sector-leadership/partnerships/public-private-partnerships
