Infrastructure Expert Advisory Panel: Report on Establishing a National Infrastructure Agency

Establishing a National Infrastructure Agency #

The Treasury convened the Infrastructure Expert Advisory Panel to advise on the establishment of a National Infrastructure Agency (NIA) in early 2024. The panel’s report informed advice to Ministers and Cabinet on options for an NIA, eventually leading to decisions in August 2024. 

Cabinet has agreed that the NIA will be established on 1 December 2024 by repurposing Crown Infrastructure Partners (CIP) to:

• undertake CIP’s existing functions and responsibilities, including administering central government infrastructure funds
• be a partner to agencies on projects involving private financing, and
• act as the Crown’s “shopfront” to facilitate private sector investment in Crown infrastructure, including receiving and assessing unsolicited infrastructure proposals for the Crown.

Cabinet also agreed to make the following changes to the Crown infrastructure system:

• to clarify the role of the Infrastructure Commission (the Commission) as an independent advisor to Government on infrastructure matters, prioritising long-term infrastructure strategy and planning as its core focus
• to clarify the role of Treasury as the primary infrastructure policy advisor and provider of ministerial support to the Minister for Infrastructure, and
• to provide a formal mandate for Rau Paenga to act as the Crown’s delivery agency on behalf of agencies with low infrastructure delivery capability.

You can find more information on the NIA at: Establishment of the National Infrastructure Agency. You can also see the final NIA establishment Cabinet paper at: Cabinet Paper ECO-24-SUB-0168: Establishing a National Infrastructure Agency.

Executive Summary of the Panel’s Report#

1. This paper outlines the Infrastructure Expert Advisory Panel’s advice to the Treasury and the Minister for Infrastructure on the proposed establishment of a National Infrastructure Agency (NIA).
2. New Zealand’s infrastructure system needs reform. There are two significant gaps in our system – our ability to deliver projects at sufficient pace and scale to support New Zealand’s growing infrastructure needs, and our commercial capability, particularly within government.
3. The panel recommends clarifying the respective roles of the Treasury and the Infrastructure Commission (InfraCom), as well as establishing a new entity (the NIA) to improve commercial arrangements and delivery capability.
4. The NIA would: deliver significant projects as directed by Cabinet; be mandated to partner with agencies on projects involving commercial or alternative procurement and private financing; and provide delivery services for agencies that do not have sufficient infrastructure delivery experience or capability.
5. Initially, the NIA should be assigned three to six large projects to deliver or co-deliver. These projects should have clear business cases, funding agreed by Cabinet and viable private financing models.
6. The NIA should be a Schedule 4A[1] company, and its establishment would also involve winding down Rau Paenga and Crown Infrastructure Partners (CIP) and reallocating their funding and relevant complementary functions and resources to the new entity.

Acknowledgements#

The panel wishes to thank the following organisations for their attendance and contribution to the panel’s deliberations:

• Crown Infrastructure Partners
• Health New Zealand – Te Whatu Ora
• Rau Paenga
• The Department of the Prime Minister and Cabinet, the Policy Advisory Group
• The Infrastructure Commission – Te Waihanga
• The Ministry of Business, Innovation and Employment, New Zealand Government Procurement
• The Ministry of Health – Manatū Hauora
• The New Zealand Transport Authority – Waka Kotahi
• The Treasury – Te Tai Ōhanga.