Photo: RNZ / Angus Dreaver
The promised National Infrastructure Agency will start operating from 1 December, with the government repurposing and powering up the current Crown Infrastructure Partners.
Infrastructure Minister Chris Bishop confirmed the coalition's approach for the agency in a speech to Infrastructure New Zealand's conference, named "Building Nations".
The roles of different agencies with oversight of infrastructure will also be redefined, with the Infrastructure Commission handing responsibility for public private partnership policy to Treasury, and Crown Infrastructure Delivery Agency Rau Paenga providing services to government agencies that have limited capability to deliver infrastructure.
Bishop has also laid out the four parts of the 30-year National Infrastructure Plan, with the Infrastructure Commission to also deliver that in December.
The agency and plan were both election commitments from National.
Bishop said Cabinet had agreed Crown Infrastructure Partners (CIP) would be repurposed into the new agency from 1 December.
It would have new responsibilities:
- Be a 'shopfront' for the Crown, receiving unsolicited proposals and supporting private investment in infrastructure
- Partner with agencies and - in some cases - local government on projects involving private finance
- Administer Central Government infrastructure funds
This would be on top of its current work. CIP is directly responsible for overseeing 46 Infrastructure Reference Group (IRG) projects, and contracts with third parties handling a total project value of $2.4 billion including $1.3b from the government.
It previously handled the ultra-fast and rural broadband rollouts, rural mobile, marae digital connectivity and the public safety network, and is also now managing the Cyclone Recovery Programme of work.
"Cabinet has decided that Crown agencies and entities will be mandated to partner with the NIA on all projects that could involve private financing, alternative funding, and complex procurement. Agencies will be required to engage with the NIA early about the potential for involving private financing - with accountability for those projects remaining with the lead agency," he said.
The exact size of the new agency was still being worked out, he said, but it would have about 60 staff in 2025 - an increase of 50 percent - and an operating budget of $26m, an increase of 44 percent.
The funding had been reprioritised "from within the existing infrastructure system, and includes $5 million in establishment funding from Budget 2024".
Bishop said the National Infrastructure Plan would provide a 30-year roadmap, setting out priorities for investment, including better management of existing assets and ensuring value for money on new projects.
He said it would outline New Zealand's infrastructure needs over the next 30 years, planned investments over the next 10-15 years, and recommendations on priority projects and reforms to fill legislative gaps into the future.
The plan will consist of four components:
- An Infrastructure Needs Assessment providing analysis of New Zealand's long-term needs - and can be afforded - across the next 5-30 years
- A strengthened National Infrastructure Pipeline to provide a nationwide view of projects over the next ten years
- The Infrastructure Priorities Programme (IPP) which will involve a structured independent review of unfunded projects and initiatives
- Priority reforms to improve selection of, investment in, delivery and maintenance of infrastructure
He said the plan would be led independently by the commission, who would consult directly with all parties in Parliament as part of the process in building the list of projects and priorities.
"It's not our plan, it's the commission's plan because the commission is independent ... under the law, they develop the plan and the government is obliged to respond to the plan."
"They will be going out for public consultation as part of the development ... it's not my list, that's the whole point."
The Commission was launching a website for the IPP from Wednesday, giving access to the public and prospective investors and stakeholders to submit proposals.
"In developing the National Infrastructure Plan, the Infrastructure Commission will work across central and local government, along with the private and wider infrastructure sector," Bishop said.
"The first round of priority proposals will be published in April next year, and the second round in June."
Bishop plans to seek support from all parties in Parliament via the Business Committee to hold an annual debate on the National Infrastructure Plan, to "show areas where Parliamentary parties agree, where we don't, and where there is room to compromise in the best interests of New Zealanders".
"I'm under no illusions that this process will be easy, but our government thinks long-term and has big ambitions for taking New Zealand forward. The National Infrastructure Plan will be an important part of that progress."
He also thanked Alan Bollard, who is stepping down as Infrastructure Commission chaiperson after five years.
The Commission, Te Waihanga, also began recruiting for a new chief executive last month "at a critical time for both the organisation and New Zealand's infrastructure system".