The Government has announced its plan to unlock economic growth through a series of initiatives aimed at attracting private capital and improving funding and financing tools.
The Government has outlined four key areas of focus in Budget 2025: lifting economic growth, using social investment to improve life outcomes, keeping tight control of government spending, and developing a pipeline of long-term infrastructure investments.
To attract long-term private capital into the economy, the Prime Minister and Minister for Infrastructure hosted the New Zealand Infrastructure Investment Summit in Auckland, which was attended by over 100 world-leading institutional investors, private investment firms, and construction companies.
The Government is also establishing National Infrastructure Funding and Financing Ltd (NIFFCo) to carry out three key functions: facilitating private sector investment and interest in infrastructure, partnering with agencies on complex procurement, alternative funding mechanisms and private finance, and administering central government infrastructure funds.
Treasury's new Funding and Financing Framework will broaden the funding base for Crown investments and utilise private capital where efficient. The Government is also modernising its PPP policies to make them more appealing to investors, including a Blueprint outlining how the government will approach future PPPs.
Additionally, changes are being made to the Infrastructure Funding and Financing Act (IFF) Act to enable levies to be charged for major transport projects, and a credit enhancement intervention has been agreed upon for Community Housing Providers (CHPs), including a Crown lending facility and loan guarantee scheme.
Government Unveils Plans for Growth and Investment
New initiatives aim to unlock private capital and address funding challenges in infrastructure and housing.
The New Zealand Government is taking steps to drive economic growth, reduce debt financing barriers for Community Housing Providers (CHPs), and attract private investment. As part of this effort, the Prime Minister and the Minister for Infrastructure hosted the New Zealand Infrastructure Investment Summit, which brought together over 100 global investors and industry leaders.
Key initiatives announced include:
* The establishment of National Infrastructure Funding and Financing Ltd (NIFFCo) to facilitate private sector investment in infrastructure.
* Treasury's new Funding and Financing Framework, designed to broaden the funding base for Crown investments and utilize private capital where efficient.
* Remedial amendments to the Infrastructure Funding and Financing Act (IFF) to enable more effective use of Special Purpose Vehicles and levies on properties that benefit from projects.
* Changes to IRRS contracts to make revenue streams more attractive to financiers, including additional compensation for Build to Lease projects and limiting the 'step-in' period to six months.
Government Unveils Infrastructure Funding Plan
New measures aim to attract private capital and reduce debt financing barriers.
The New Zealand government has announced a comprehensive plan to unlock growth and overcome funding challenges in infrastructure and housing. The plan includes establishing National Infrastructure Funding and Financing Ltd (NIFFCo), Treasury's new Funding and Financing Framework, and the refresh of the Government's PPP policies.
As part of its efforts to attract private capital, the Government hosted the New Zealand Infrastructure Investment Summit, which was attended by over 100 world-leading institutional investors, private investment firms, and construction companies. The summit reaffirmed New Zealand's position as a safe and strong country to invest in.
The Government has established National Infrastructure Funding and Financing Ltd (NIFFCo) to facilitate private sector investment in infrastructure projects. NIFFCo will provide expertise on complex procurement, alternative funding mechanisms, and private finance.
The new Funding and Financing Framework will broaden the funding base for Crown investments and utilize private capital where efficient. The framework provides guidance to agencies that they should seek user or beneficiary pays to fund new infrastructure projects rather than defaulting to taxpayer money.
The Government has also introduced changes to the Infrastructure Funding and Financing Act (IFF) Act to support urban growth, including broadening the Act to enable levies to be charged for major transport projects.