by Te Waihanga (the New Zealand Infrastructure Commission) 

Te Waihanga (ThE New Zealand Infrastructure Commission) has launched the Infrastructure Priorities Programme to help address Aotearoa New Zealand’s infrastructure issues.

Chief Executive of Te Waihanga (the New Zealand Infrastructure Commission) Geoff Cooper says the Infrastructure Priorities Programme (IPP) puts in place a standard and independent process to help address some of the big infrastructure challenges that Aotearoa New Zealand faces. 

‘The IPP will help us identify New Zealand’s top infrastructure issues and solutions, so that we can be sure we’re making the right investment decisions,’ says Cooper.

‘New Zealand spends a lot on infrastructure – an average of 5.8 per cent of gross domestic product in total. International comparisons show that our infrastructure investment levels are higher than Australia and the typical Organisation for Economic Co-operation and Development country; however, New Zealand ranks near the bottom of high-income countries for the efficiency of that spend.

‘Simply put, we’re not always getting value from our infrastructure investment. There are things we can do to improve, including longer-term planning, a more complete programmatic approach to investment and better choices about what we invest in,’ says Cooper.

‘Endorsed proposals will be included in the National Infrastructure Plan that Te Waihanga is now developing. This will provide a menu of high-quality, vetted proposals that is available to decision-makers. It is not limited to projects, but could also include initiatives that avoid the need for costly new investments.’

How was the assessment framework developed?

‘Priority lists take different forms in different countries, but until the IPP was launched, New Zealand was in the minority (19 per cent) of high-income countries that did not have an independent process for identifying infrastructure priorities,’ says Cooper.

In developing the assessment framework, Te Waihanga looked at international best practice and engaged with external reviewers, including the United Kingdom–based Institution of Civil Engineers through its Enabling Better Infrastructure program. 

‘Globally, decision-makers, infrastructure owners and operators are facing difficult challenges,’ Professor Jim Hall, Chair of the Enabling Better Infrastructure program steering group, says. ‘To address them, we need to improve how we think about infrastructure in the long term, learning lessons from around the world. 

‘Planning, prioritisation and designing with public benefits in mind is paramount. Evidence-based, independent assessments and a clear decision-making process are essential to improve outcomes. Incorporating the Enabling Better Infrastructure program’s insights on the New Zealand Infrastructure Commission’s assessment framework demonstrates Te Waihanga’s commitment to identifying and delivering the infrastructure New Zealand needs in a transparent and strategic way.’

International best practice shows that programs are most valuable when they are improved on over time. Te Waihanga expects to periodically review and update the IPP. This review will use a structured process, including asking key stakeholders for feedback. 

How will proposals be assessed? 

We’re seeking proposals that meet the following three assessment criteria:

1. Strategic alignment: Does a proposal support future infrastructure priorities and/or improve existing infrastructure systems and networks that New Zealanders need?
2. Value for money: Does a proposal provide value to New Zealand above the costs required to deliver, operate and maintain it?
3. Deliverability: Can a proposal be successfully implemented and operated over its life?

‘If a solution is strategically aligned, but is either not deliverable or the benefits do not cover its whole-of-life costs, then it is reason to pause and reconsider other solutions. This is why all three criteria are equally important,’ says Cooper.

The IPP defines strategic alignment in terms of the five long-term strategic objectives that are set out in the New Zealand Infrastructure Strategy. The five strategic objectives are: 

1. enabling a net-zero carbon emissions New Zealand
2. supporting towns and regions to flourish
3. building attractive and inclusive cities
4. strengthening resilience to shocks and stresses
5. moving to a circular economy.

Some proposals may not make a direct contribution to the objectives outlined above, but may still be strategically important. In these cases, a proposal should demonstrate how it fits into the wider picture of its infrastructure system.

The value for money component of the assessment will test the extent to which a proposal provides value to society above the costs to provide it. To demonstrate value for money, proposals will need to show that the preferred option is the best-performing option, and that it creates more benefits than costs.

The deliverability component will look at whether the project has been developed sufficiently, whether the investment is viable and achievable in the delivery market, and whether the applicant has the capability needed to deliver it.

Successfully assessed proposals signal a readiness to proceed

Projects can be submitted at three different stages. These stages are based on how far along a proposal is.

• Stage 1: A problem or opportunity has been identified, but no solution has been locked in.
• Stage 2: The problem or opportunity has been determined, and a range of options have been identified that might address it. 
• Stage 3: The proposal is ready for investment, and the submitter can provide a high level of detail in financial, commercial, procurement, and governance planning.

‘Major infrastructure proposals should go through a deliberate, staged planning and development process. The IPP assessment will signal what stage different proposals are at. 

‘In some cases, people might have defined a problem or opportunity, even if they haven’t yet landed on the right solution. Our staged process acknowledges that as an important part of the planning process,’ says Cooper.

How can a proposal be considered?

Anyone can submit a project or proposal for any part of New Zealand. This could include central government, local government, community groups and the private sector.

‘Our assessment framework doesn’t only focus on evaluation of new investments, although those are important. It acknowledges that, in many cases, the biggest gains lie in better caring for and using our existing assets,’ says Cooper.

Projects or proposals will be assessed on whether they are nationally important. Those valued at over $50 million are more likely to fall into this category, and so Te Waihanga would encourage potential applicants to consider this in deciding whether to submit to the IPP.

What happens to proposals that are successful?

Proposals that are endorsed through the IPP will be publicly listed on Te Waihanga’s website. Successful proposals will also be included in the National Infrastructure Plan that is currently being developed. This will give decision‑makers and the public visibility of projects that can make a difference. The IPP will also inform Te Waihanga’s advice on infrastructure proposals that are considered for central government funding. 

The Minister for Infrastructure the Hon. Chris Bishop has asked Te Waihanga to lead in the development of the National Infrastructure Plan, but we’ll be working across government, the sector and with the public to ensure the plan is enduring. As part of that, there will be several opportunities for the infrastructure sector and the public to provide input into the National Infrastructure Plan, which is expected to be finalised in late 2025.

‘We recognise that this work will take time and ongoing commitment, but both the National Infrastructure Plan and the IPP will offer ways to lift New Zealand’s game when it comes to building consensus on our infrastructure priorities, and getting the value Kiwis deserve from our infrastructure investments,’ says Cooper.

To learn more about the Infrastructure Priorities Programme, visit https://tewaihanga.govt.nz/our-work/infrastructure-priorities-programme. To learn more about the National Infrastructure Plan, visit https://tewaihanga.govt.nz/national-infrastructure-plan.