In what can be seen as an early test for the Govt’s commitment to public-private partnerships, it is being urged to appoint a public and private sector advisory board reporting to the Infrastructure Minister to prioritise investment in national infrastructure and optimise value for money from its capital investment programme. The NZ Council for Infrastructure Development CEO, Stephen Selwood, says, “Constraints on public funds mean a combination of public and private sector finance will be needed to fund all of the work required.” He adds leveraging private sector investment, and improving value for money through private sector innovation and risk transfer will be critical success factors for any such capital investment programme.

Priorities need setting. Selwood believes the first task for the advisory board must be to take stock and advise Govt on priorities for public works projects which are already consented and have a demonstrated high benefit cost ratio. Examples include road safety projects and local road improvements across the country and a backlog of work on the national rail network. Selwood says there are already $1bn of roading projects nation-wide consented awaiting construction which can be fast-tracked.

Broad approach. The advisory Board should be charged with the responsibility of co-ordinating a whole of Govt 20 year infrastructure plan and recommending the policy changes necessary to drive economic growth in the medium term. A joint public and private sector approach is required which capitalises on the expertise of all sectors and advances best practice in project delivery.

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