Formats and related files
The New Zealand PPP Programme commenced in 2009 and developed an international reputation for being outcomes and service oriented – that is, it has not been used simply to deliver infrastructure assets. Instead, it has focused on the enhanced delivery of public services, with the intent that this would challenge, or shift, how we deliver infrastructure to New Zealanders across wider asset networks.
Eight PPP projects have been developed since 2011, including three corrections facilities, two state highways and three bundles of primary and secondary schools. Service delivery outcomes achieved through these projects to date have been positive, in many cases outperforming similar projects delivered using other methods. Standardised or modular designs from PPP projects and asset management lessons have also begun to be implemented elsewhere.
However, there have also been some commercial challenges faced by those delivering the contracted outcomes, which is not sustainable. As we prepare for future PPP projects, we are committed to learning from the shared experience of PPP delivery agencies and contractors alike, to ensure the New Zealand PPP framework is an attractive and successful delivery model.
No two significant and complex infrastructure projects are alike, and as the scale of individual and aggregate investment in the New Zealand infrastructure pipeline grows, we consider it essential that public sector agencies have access to a range of tools – including a PPP Framework that retains the key objective of providing unrivalled incentive on whole of life performance and service outcomes, but is flexible in accommodating unique project characteristics and market conditions.
This document outlines some of the model, policy and process enhancements we believe will contribute to making future PPP transactions as successful as possible for all parties.
The development of this approach to future PPP transactions has been led by the New Zealand Infrastructure Commission, working closely with the Treasury and relevant public sector agencies. It incorporates a range of feedback and insights from private sector stakeholders, experienced public sector PPP practitioners, and consideration of international best practices.
We will continue to engage with the sector on the principles set out in the document and refine the New Zealand PPP Framework to ensure that it serves the procurement needs and objectives of government while remaining attractive to market participants.