Step closer to improved infrastructure planning

A second pipeline of New Zealand’s planned infrastructure projects has been released by the new Infrastructure Commission, Te Waihanga, with a combined estimated value of $21.1bn.

The pipeline contains data from 15 organisations, which have identified more than 500 credible and committed projects over the next decade. Contributors include government agencies and local councils, as well as council controlled organisations and a university. One of the Commission’s objectives is to improve New Zealand’s infrastructure procurement and the pipeline is a key part of this, delivering greater certainty to infrastructure builders and investors.

Commission board chair, Dr Alan Bollard says even though it is still in development, the pipeline provides some useful guidance to the market.

"As might be expected, transport is the largest sector in the pipeline, comprising nearly a third of the total estimated value. Water and energy are represented for the first time and the latest version incorporates data from across the Manawatu, in an effort to test the value of regional infrastructure overviews."

Dr Bollard says pipeline development is an iterative process, with more, better quality data being incorporated all the time. In this version, project phase dates were provided for roughly 30% of projects by volume and value.

"Taking those caveats into account, early indications are that nearly $670m of works are expected to move from business case to procurement between now and March 2020, with an increase in construction activity throughout 2020 and 2021."

The pipeline is intended to increase co-ordination between procuring entities as planned works are made visible, and to enable smoothing of the market. Dr Bollard says data quality and volume is imperative to deliver an increasingly robust picture of New Zealand’s forward works programme.

"As with any tool of this kind, it is only as valuable as the information it contains. We welcome the ten additional contributors to this version and encourage all government agencies and councils to share their plans."

Dr Bollard says the Commission will be actively consulting with stakeholders at the earliest opportunity to begin the process of developing a 30 year strategy by the end of 2021.

The pipeline can be found on the Infrastructure Commission’s new website at https://infracom.govt.nz/projects/pipeline/(external link), along with more information about the procurement advice, commercial support and strategic guidance the independent organisation offers procurers of large infrastructure projects.

-ENDS-

The Infrastructure Commission, Te Waihanga

The Commission was created to improve New Zealand’s infrastructure procurement and strategic planning. It was formed in late September 2019, and incorporates the former Treasury Infrastructure Transactions Unit. Together with stakeholders, Te Waihanga will develop a 30 year infrastructure strategy and a quarterly pipeline of credible projects, committed to over the next ten years. The first version of the pipeline, published in May 2019, contained data from five capital-intensive government agencies, covering 174 projects to the value of $6.1bn.

Contact:
Anna Verboeket
General Manager Engagement
Infrastructure Commission, Te Waihanga
021-938-290