Pipeline analysis

Infracom released its latest quarterly pipeline data update on 18 March 2020, before New Zealand’s COVID-19 lockdown. Below is the analysis from this date. Projects are being revised due to the pandemic and are working with organisations to ensure the information on our pipeline is up-to-date. We are also continuing to onboard new organisations. Once all revisions are made we will refresh the analysis.

The latest updates are summarised in the table below:

 

Organisation Number of Projects Estimated Value Last Updated
Opotiki District Council 1 $99 million 16 September 2020
Dunedin City Council 17 $163 million 1 September 2020
Christchurch City Council 1 $473 million 20 August 2020
Waimea Water Limited 1 $100-250 million 11 August 2020
Ministry of Education 142 $1.86 billion 7 August 2020
Department of Corrections 16 $1.36 billion 7 August 2020
Ministry of Health 41 $2.94 billion 27 July 2020
Queenstown Lakes District Council 34 $221 million 27 July 2020
New Zealand Transport Agency 112 $11.7 billion 2 July 2020
Ministry for Primary Industries 1 $100-250 million 2 July 2020
Transpower 19 $1.99 billion 2 July 2020
City Rail Link Limited 1 $4.4 billion 26 June 2020
Otakaro Ltd 2 $669 million 26 June 2020
Wellington Water 7 $268 million 17 March 2020
Antarctica New Zealand 1 $100-250 million 17 March 2020
New Zealand Defence Force 70 $1.4 billion 17 March 2020
Wellington International Airport Limited 3 $725 million 17 March 2020
Ports of Auckland Limited 8 $252 million 17 March 2020
Hamilton City Council 26 $687 million 17 March 2020
Palmerston North City Council 98 $586 million 17 March 2020
KiwiRail 18 $4.4 billion 17 March 2020
Watercare 119 $5.56 billion 17 March 2020
Manawatu District Council 14 $252 million 12 November 2019
University of Otago 23 $881 million 12 November 2019
Total 775 $41.5 billion  

 

Insights from previous quarter

As at 18 March, the pipeline contained data from 19 organisations, which have identified 2,290 projects between them. Together, these have an estimated value of $33.2 billion – significantly higher than last quarter’s combined estimated value of $21.1 billion. This is largely due to the New Zealand Upgrade Programme(external link) projects.  Three high growth councils are also now included, with several projects in the Auckland region. 

New Zealand Upgrade Programme

In December 2019 the Government announced a $12 billion programme of investment as part of the Half Yearly Fiscal Update. It outlined the first package of projects totaling $7.3 billion, in January 2020.  Twenty-four of the projects from the announcement have been included in this update​. These projects add up to $6.9 billion and include:  

  • ​all twelve roading projects​ 
  • all four rail projects​ 
  • one walking/cycling project ​ 
  • seven health projects. ​ 

Note: The $400 million school maintenance programme and smaller health projects announced recently are not included. 

High growth councils contributing

High growth councils Auckland Council, Hamilton City Council and Queenstown Lakes District Council (Three Waters programme only) are new additions to pipeline. Ports of Auckland and Wellington Airport (our first private sector contributor) have also begun providing their data.  

A few big projects

Large projects make up a significant proportion of the estimated value of the pipeline. In this iteration 0.5 percent of projects are valued at over $500 million, representing around a third of the estimated pipeline value. 

Transport remains the largest sector

Transport is the largest sector represented, comprising around half the estimated value of the pipeline. Water and health are next. This can partly be attributed to the data available at the time of publication.

Other changes

Twenty-three new Ministry of Education projects have been added to the pipeline. KiwiRail has expanded its original listing of two projects to eight — the Auckland Metro Rail Network Programme (now five projects) and the Rolling Stock Procurement Project (now three projects). Stages 6 and 7 of the Wellington Metro Rail Network Programme were also added to the pipeline for this third iteration. Below is a summary of organisations contributing to the pipeline.

 

Organisation Number of projects Estimated value 
Antarctica NZ 1 $100 – $250 million
Auckland Council 1,644 $1.64 billion
Department of Corrections 11  $1.39 billion
Hamilton City Council 26 $687 million
KiwiRail 18 $4.43 billion
Manawatu District Council 14 $252 million
Ministry of Education 118 $1.22 billion
Ministry of Health 23 $2.69 billion
Ministry for Primary Industries 1 $100 - $250 million
New Zealand Defence Force 65 $1.18 billion
New Zealand Transport Agency 67 $9.80 billion
Palmerston North City Council 98  $586 million
Ports of Auckland Limited 8 $252 million
Queenstown Lakes District Council 35 $225 million
Transpower 9 $1.02 billion
Watercare 119 $5.56 billion
Wellington International Airport Limited 3 $725 million
Wellington Water $268 million
University of Otago 23 $881 million
Total 2,290 $33.24 billion

Note: The estimate provided for the City Centre to Mangere Light Rail is the initial funding allocation of $1.8 billion as stated in ATAP, and therefore does not include the full estimated cost of the project. It is currently listed as an NZTA project while the Ministry of Transport runs a process to develop the NZTA and an alternative NZ Infra delivery option for Auckland’s rapid transit project. In the event that an alternative delivery partner is selected, we will update the pipeline to reflect the outcome. For more information see https://www.transport.govt.nz/land/auckland/atap/next-steps-on-auckland-light-rail/(external link)