Refreshed guidelines aim to deliver better infrastructure projects.
The New Zealand government has released a refreshed Public Private Partnership (PPP) framework, providing a blueprint for future PPP transactions. The updated model aims to attract international capital and expertise while prioritizing whole-of-life outcomes.
Infrastructure Minister Chris Bishop said the refreshed PPP model is essential for delivering, maintaining, funding, and financing infrastructure in smarter ways. Parliamentary Under-Secretary Simon Court added that considering the use of PPPs is a government priority, with extensive engagement by the Infrastructure Commission with Treasury, public sector agencies, and the broader infrastructure sector.
The new framework includes several key elements, such as risk transfer, bid cost recognition, collaborative tendering, affordability threshold, claims and dispute resolution, and crown resourcing and capability. These changes aim to improve project outcomes and reduce disputes.
Mr Bishop noted that PPPs can drive better performance due to strong contractual incentives. He also stated that the new framework has a strong focus on greater outcomes rather than lower cost, achieved through the use of an affordability threshold based on the modeled net present cost of delivering the same service outcomes using non-PPP delivery methods.
The refreshed Blueprint for PPPs sits alongside other changes made by the government to New Zealand's infrastructure policy guidance and settings.