Government Set to Roll Out New Infrastructure Framework

The New Zealand government is beginning to take significant steps towards addressing the country’s long-standing $100bn infrastructure deficit (and election promises) with a flurry of announcements in the lead up to Christmas.

New Zealand spends roughly the same amount on infrastructure per capita as most other OECD countries - but our infrastructure remains in a much poorer state. Being a long and narrow country with a low population density doesn't make it easy (or cheap) to build and maintain infrastructure, but there are a number of tools available to help kickstart activity and build a strong pipeline of infrastructure commitments that Business Canterbury has been advocating for over the last few years.

With time of the essence, we need the Government to get the system working and the taps turned on so our economy can start building again. Here's what has been announced so far:

• New funding and financing framework
• Framework for taking private sector-led infrastructure proposals
• Infrastructure agency up and running
• Refreshed Public Private Partnership framework
• Regional deal framework (and invitation for all regions to apply)

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The National Infrastructure Plan: Shaping the Future

• A 30-Year Vision: The government has tasked the Infrastructure Commission with creating a 30-year National Infrastructure Plan that will map out the country’s infrastructure needs and investments for the coming decades.
• Business Opportunity: Stay informed and engaged with the consultation process. Participate in submissions for the National Infrastructure Plan to ensure that Canterbury's specific needs, particularly in transport and logistics, are met.
  
  

The Commission is currently calling for public submissions, be sure to make your voice heard by submitting feedback here.

New National Infrastructure Agency: A Step Towards Smarter Investment

• Introducing NIFFCo: The National Infrastructure Funding and Financing Company (NIFFCo) is the New Zealand Government’s investor shopfront for private capital investments into public infrastructure and the centre of expertise on the funding and financing of New Zealand infrastructure.
• Impact for Canterbury Businesses: As NIFFCo's role has expanded to include partnering with the private sector, central and local government, NGOs, and iwi to fund, finance, and deliver infrastructure — including connectivity, water, transport, flood protection, community facilities, and social infrastructure — if your business operates in one of these sectors, NIFFCo could be your gateway to partnership opportunities.
  
  

Learn more about how your business can partner with government initiatives through NIFFCo by visiting their website.

Improving Infrastructure Funding and Financing

The government is shifting from relying solely on taxpayer or ratepayer funding to using smarter financial tools, such as user-pays models, to fund infrastructure projects. This includes market-led proposals and public-private partnerships (PPPs) that encourage private-sector involvement in infrastructure.

What Does This Mean for Your Business?

• Become a private investor
  As infrastructure projects begin to seek private investment, businesses that are able to offer capital, expertise, or innovative solutions will have a significant opportunity to participate in the government’s plans.
• Work collaboratively with the Government
  Check if your business is eligible to submit a market-led proposal under the new framework. The focus for market-led proposals is on proposals which meet public interest objectives and value for money and can justify an exclusive negotiation with the Government. Such proposals are generally outside the normal planning and competitive procurement processes of government and will offer opportunities to deliver real value, productivity improvements and innovation to the Government and community.
• Explore how you can benefit from a public-private partnership (PPP)
  A public private partnership, also known as a PPP, is a long term arrangement between the public sector and private sector institutions for the delivery of a service, where provision of the service requires the construction of a new asset, or enhancement of an existing asset that is financed from external sources on a non-recourse basis, and ownership of the asset is retained by the Crown. 
  
  

Strengthening the Consent Framework for Faster Project Delivery

• Streamlined Approvals: The government is reforming the Resource Management Act (RMA) to allow faster consenting for significant infrastructure projects. This will ensure that Canterbury’s projects, critical to the region’s economy, are delivered more quickly.
• Benefits for Business: Faster consenting means less project delay, helping to get new infrastructure in place sooner. For businesses in the construction, transport, and logistics sectors, this is a direct benefit.
  
  

To ensure your business is ready to leverage any new opportunities, stay up to date with the latest developments on the RMA on the Ministry for the Environments website here.

What’s Next: Opportunities and Next Steps for Business

• Next Year’s Commitments: Businesses will see commitments for funding and planning in the coming year, which will directly impact long-term infrastructure projects. Be prepared for shifts in funding models, faster approvals, and new funding frameworks that could provide opportunities for collaboration.
• Aligning with National Priorities: Make sure your business is positioned to take advantage of upcoming infrastructure projects by aligning with the government’s priorities. This is a chance for Canterbury businesses to play an active role in shaping the future of infrastructure in the region.
  
  

The government’s overhaul of the infrastructure system is a game-changer for businesses in Canterbury. From streamlined processes and smarter funding to a greater emphasis on collaboration, these changes will bring new opportunities to the region. Now is the time for businesses to engage with the ongoing discussions and make their voices heard, ensuring that Canterbury is at the forefront of capitalising on New Zealand’s infrastructure opportunities.

With infrastructure in mind, we invite you to engage with our efforts to shape Canterbury's regional economic vision through the Canterbury Ambition initiative. 

To connect with us about our work on the Canterbury Ambition or to offer feedback on our first draft report, feel free to contact me or taitd@cecc.org.nz directly.