Infracom coordinates the New Zealand Public Private Partnership (PPP) Programme. Updated PPP guidance material and project information will be published here from time to time.
What is the New Zealand PPP model?
In the New Zealand context, a PPP is a long-term contract 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 full legal ownership of the asset is retained by the Crown.
The key policy characteristics of the New Zealand PPP model include:
- a focus on service outcomes
- the construction of a new infrastructure asset, or substantial enhancement of an existing asset, to facilitate the delivery of service outcomes
- the delivery of service outcomes by a private sector partner for a defined period (often between 20-30 years)
- the efficient allocation of risk to the party best able to manage that risk
- the separation of ownership (retained by the public sector) and financing (provided by the private sector partner) to provide meaningful risk transfer and management, and
- the application of a payment for performance regime to incentivise the delivery of specified service outcomes and to penalise non-performance.
Why adopt the PPP procurement model?
The primary purpose of PPP procurement is to improve the delivery of service outcomes from major public infrastructure assets by:
- integrating asset and service design
- incentivising whole of life design and asset management
- allocating risks to the parties who are best able to manage them
- only paying for services that meet pre-agreed performance standards.
What PPP support does Infracom provide?
Infracom was established to support government agencies, local authorities and others to procure and deliver major infrastructure projects. As part of this role it is responsible for:
- developing PPP policy and processes
- assisting agencies with PPP procurement
- the Standard Form PPP Project Agreement(external link)
- engaging with potential private sector participants
- monitoring the implementation of PPP projects.