One of the Commission’s key roles is to support government agencies, local authorities and others to procure and deliver major infrastructure projects. The nature of support provided will be tailored to suit the size, complexity and risk of the project and the procurement capability of the party involved. The Commission aims to supplement, rather than replace, existing capability.
The type of Commercial advice that will be provided by the Commission includes:
- Procurement and delivery support: This can involve supporting agencies in any aspect of a major infrastructure project from the preparation of a business case, through market engagement, procurement, negotiation and or project delivery, including through the provision of embedded commercial and procurement expertise.
- Best practice guidance: Provide exemplar advice on infrastructure procurement and delivery, including best practice procurement processes and documentation for major infrastructure projects.
The Commission’s ability to support major infrastructure projects will build gradually over time.
The Commission also has specialist expertise in alternative financing models, including public private partnerships.
In the course of providing advice and guidance the Commission will be receiving information from multiple parties, especially central and local and government agencies. Accordingly it has developed a set of information sharing protocols [PDF, 132 KB] to explain how it will use this data.
The National Infrastructure Unit(external link) will have oversight of the Infrastructure Commission’s work and monitor its performance, providing formal advice to the Minister for Infrastructure.
The Commission’s mandate derives from its enabling legislation; the Ministry of Business Employment and Innovation (MBIE) Rules of Procurement(external link); and the State Services Investment Management System(external link), which sets out Cabinet’s expectations regarding the management of investments through their lifecycles.
For Public Service departments and agencies(external link) planning major projects with a total cost of ownership greater than $50m, Rule 64 of MBIE’s rules of procurement the states that they must:
- Consult with the Commission’s [Infrastructure Transaction Unit (ITU)] early in the development of their business case
- Follow relevant published ITU guidance
- involve the ITU in the assessment of the project’s business case and advice to Ministers
- invite the ITU to participate in relevant project steering and working groups, and in the selection panels for all key advisor appointments in relation to the project, and
- use any standard form documentation developed by the ITU as the basis for any infrastructure contract, and consult with the ITU over any material proposed modifications.
For State Services agencies, initial engagement with the ITU will typically occur through the Investment Management System. Cabinet Office Circular CO (19) 6: Investment Management and Asset Performance in the State Services(external link) sets out Cabinet’s expectations that agencies planning investments will consult the Commission early, particularly when the investments are greater than $50m or where innovative approaches to procurement and alternative financing arrangements are being considered. Treasury, the Commission and relevant functional leaders will determine the form of support for an investment.