National win opens door to PPPs in New Zealand

The opposition National Party has won the New Zealand election, in a move that could pave the way for the return of PPPs in the country.

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With National projected to win 50 seats and 39% of the vote, the party is expected to combine with the Act Party to establish a right wing coalition.

The change could result in the return of the PPP model to deliver new infrastructure across the country, following the antipathy shown to the use of private sector investment in public infrastructure during the Labour Party’s time in power.

In June, National made infrastructure investment a key part of its policy programme, pledging to establish a new National Infrastructure Agency that will act as a “centre of expertise for new funding and financing tools, like public-private partnerships, value-capture, and tolls”.

PPPs had been popular in New Zealand, but have fallen out of favour in recent years, in part due to the delays and cost increases associated with the Transmission Gully road project.