Infrastructure Minister Chris Bishop and Parliamentary Under-Secretary Simon Court have released guidelines for market-led proposals, allowing private sector players to contribute innovative ideas for solving New Zealand's infrastructure problems.
New Zealand has never successfully implemented a market-led proposal, despite international examples. The Government hopes the new framework will clarify how to assess and engage with private sector ideas. The guidelines focus on three core considerations: public interest, value for money, and exclusivity. A new national agency, National Infrastructure Funding and Financing Ltd (NIFFCo), will serve as the "front-door" for market-led proposals.
The Government has acknowledged a lack of clear processes in the past, leading to bureaucratic inertia and missed opportunities. The new guidelines aim to positively engage with private sector ideas and solutions to New Zealand's infrastructure deficit. According to Mr Court, the Government is now equipped to assess proposals more efficiently, ensuring that innovative ideas are not turned away due to inadequate systems and frameworks.
The release of the market-led proposals - Guidelines for submission and assessment marks a significant step in reforming infrastructure funding and financing in New Zealand. The guidelines will be managed by The Treasury, which has taken ownership from the Ministry of Business, Innovation and Employment (MBIE).