NZ Infra Commission backs PPPs

The New Zealand Infrastructure Commission Te Waihanga has published a new draft infrastructure strategy that highlights the potential of the PPP model.

Within the draft strategy, the commission backed the potential for using private finance to develop and deliver new infrastructure, stating: “Public private partnerships are a viable option for delivering infrastructure.”

While acknowledging that there had been “some high profile examples where PPP projects have had delays or cost overruns” associated with the country’s PPP projects to date, it added that the five operational projects in New Zealand “have generally been delivered on-time and on-budget for the Crown”.

It concluded: “In the right circumstances, the PPP model can offer better value for money when compared to more traditional procurement approaches. When looking at how to deliver new infrastructure projects, government should rigorously test the potential for using a PPP as part of the procurement phase.”

The draft document has been sent to Grant Robertson, minister for infrastructure, for him to review and give feedback before the final strategy is published.