Govt Unveils Refreshed PPP Framework to Drive Smarter Infrastructure Delivery

"Updating New Zealand’s PPP model is a key component of our broader plan to enhance how we fund, deliver, and maintain infrastructure," said Mr. Bishop.

The Government has released an updated Public-Private Partnership (PPP) framework, marking a significant step toward delivering smarter, more sustainable infrastructure projects. The refreshed framework provides a clear strategy for how New Zealand will approach future PPP transactions, with an emphasis on attracting international capital and expertise, Infrastructure Minister Chris Bishop and Parliamentary Under-Secretary Simon Court announced today.

"Updating New Zealand’s PPP model is a key component of our broader plan to enhance how we fund, deliver, and maintain infrastructure," said Mr Bishop. "It’s about using smarter methods to drive economic growth and ensure long-lasting benefits for all New Zealanders."

The framework update aligns with the Government’s commitment, outlined in the ACT-National Coalition Agreement, to prioritize the use of PPPs for key infrastructure projects. Mr. Court, who has overseen the development of the framework, emphasized that PPPs have a proven track record of delivering positive outcomes across various sectors in New Zealand.

Since 2011, eight major PPP projects have been completed in New Zealand, including correctional facilities, state highways, and primary and secondary schools. These projects have, in many cases, outperformed traditional delivery models, providing high-quality services and long-term value through standardized designs and efficient asset management.

The new PPP framework builds on these successes, focusing on enhancing performance and outcomes over the lifetime of each project. "When executed well, PPPs ensure projects are well planned, delivered on time and on budget, and maintained properly, resulting in reliable infrastructure for New Zealanders," said Mr Court.

The refreshed framework incorporates several key elements designed to improve the effectiveness and attractiveness of PPPs, including:

Risk Transfer: Emphasizing that risks should be allocated to the parties best positioned to manage them, addressing past concerns about the excessive transfer of risk to private partners.

Bid Cost Recognition: Offering guidance to agencies on how to reduce the costs and time associated with the bidding process, which will help maintain competitive tension.

Collaborative Tendering: Improving the Interactive Tender Process to foster better collaboration between bidders and clients, ensuring solutions are better aligned with project needs.

Affordability Threshold & Public Sector Comparator: Introducing more realistic price comparisons and validating project costs to ensure PPP projects offer better value than non-PPP alternatives.

Claims & Dispute Resolution: Streamlining dispute resolution processes to prevent delays and improve project relationships.

Crown Resourcing & Capability: Acknowledging the importance of strong central government oversight and an informed, engaged client to deliver successful PPP projects.

"By refining these processes, we aim to create a system where both public and private partners can contribute to better infrastructure outcomes, enhancing New Zealand’s prosperity," Mr Bishop added.

In addition to the refreshed PPP framework, the Government is set to publish updates to other key infrastructure policy documents, including New Zealand’s Funding and Financing Framework, Strategic Leasing guidelines, and guidelines for Market-Led (Unsolicited) Proposals. These initiatives collectively form the Government’s strategy to streamline and improve infrastructure delivery and financing.

The new PPP framework is expected to attract both domestic and international expertise, playing a crucial role in delivering a new generation of infrastructure projects critical to New Zealand’s economic future.