Cabinet Paper ECO-24-SUB-0168: Establishing a National Infrastructure Agency

1 This paper proposes a reorganisation of the Crown's infrastructure agencies as a first step to create a highly performing infrastructure system. We need clearer roles and responsibilities, greater accountability, stronger system leadership, and a greater focus on using private capital to deliver infrastructure projects.

2 Our infrastructure system faces complex challenges, including an infrastructure deficit estimated at over $104 billion.[1] I propose that we strengthen the Crown’s commercial, procurement, private finance, and assurance functions to build up the capability and access to capital needed to meet New Zealand’s infrastructure investment needs.

3 There is also a lack of effective long-term national planning, investment prioritisation, and monitoring of the Crown infrastructure system. This, alongside some role ambiguity between the core Crown infrastructure agencies, has resulted in non-strategic decision making, reduced accountability, poor incentives and performance, and delayed interventions.

4 The proposals in this paper seek to address these issues through coordination with other work programmes such as the fast-track consenting regime, National Infrastructure Plan, and Improving Infrastructure Funding and Financing (which includes, but is not limited to, reform of the Infrastructure Funding and Financing Act 2020, and modernisation of the Public Private Partnership (PPP) model).