New government infrastructure agency a potential game-changer, say industry professionals

Infrastructure and asset management professionals are lauding the Government’s 30-year National Infrastructure Plan.

The president of Āpōpō Gary Porteous says it’s long past due that New Zealand has a bi-partisan, strategic view about infrastructure development and management. 

Āpōpō is the lead association for infrastructure asset management professionals for Aotearoa New Zealand. With over 1,000 members from local and central government, suppliers and consulting firms, Āpōpō provides guidance, learning and accreditation to enhance our nation’s capability in asset management. 

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 announced in August. 

“From 1 December, Crown Infrastructure Partners (CIP) will be repurposed to be the new National Infrastructure Agency (NIA).” 

The 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. 

“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.” 

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.

Mr Porteous says the ongoing maintenance and management of the country’s major infrastructure assets has been on a downward spiral of under-investment for years. It’s a trajectory that’s created a number of major long-term issues for NZ Inc, and it will be hard to turn around. 

As a consequence, and because of ongoing uncertainty and the lack of construction, the sector has lost skilled people and much- needed expertise to deliver these projects. 

The recent Āpōpō member sentiment survey found that one of the top three challenges for asset managers is the reliability of planning direction across election cycles. Increased funding and new funding sources were also cited as top priorities for the future of New Zealand’s infrastructure. 

“Something really needed to change, and the Government’s new plan has the potential to be that game-changer. But we desperately need immediate and decisive action and to see an urgent timeline around projects rolling out.” 

Mr Porteous agreed any infrastructure development plan needed to be truly bi-partisan and long-term in vision. The 30-year life cycle that’s been proposed is appropriate given infrastructure assets last for generations. 

The NIA also needs to deliver innovative funding models, both to finance new infrastructure assets and address the massive infrastructure deficit the country now faces. 

“Our asset management professionals have been working hard on their Long Term Plans, to improve the data and predict trends like population growth, regional development, and community requirements as well as finding efficiencies. We understand the risks associated with New Zealand’s geology and we are increasingly aware and conscious of the growing impacts of climate change and the need for adaptation. 

“Having a strategic plan that takes those and other considerations into account, that is properly funded, and that isn’t subject to a three-year election cycle, is something that our members, as infrastructure and asset management professionals, support wholeheartedly.” 

He said Āpōpō members will be keen to submit to the Infrastructure Priorities Programme.