As the Government seeks to reshape New Zealand’s infrastructure sector, we are expecting to see a number of key infrastructure developments before the end of 2024. These arise from both the Q4 Action Plan[1] and other Government announcements.
It is promising to see the Government’s commitment to driving economic growth through infrastructure, with many new initiatives on the horizon. Key to the success of these will be the transition from the planning phase to the implementation phase, and ensuring the market is able to respond in order to improve infrastructure delivery across New Zealand.
Upcoming developments to keep an eye on in the next few months are below.
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The Fast-track Approvals Bill proposes a fast-track approvals regime for infrastructure projects of national and regional significance and is currently progressing through Parliament, with submissions to the Environmental Select Committee on the Fast-track Bill having closed in April 2024. The Committee is due to report back to the House on 18 October 2024, with the aim to pass the Fast-track Bill before 31 December 2024.
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The Government recently announced plans to replace the RMA with two new laws, with the aim to introduce the second RMA reform bill to Parliament to remove barriers to growth in the infrastructure, energy, housing and farming sectors before 31 December 2024. See our earlier article here.
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Minister of Housing and Minister of Transport to deliver advice in the form of a value capture framework which will set out required changes to existing value capture tools and/or new tools, as well as clarification on the various forms of value capture tools available and guidance on when to use different tools. By 30 November 2024.
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Cabinet to consider and make decisions on how policy options could address issues with current funding tools. By 30 November 2024.
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Minister of Housing and Minister of Local Government to provide policy advice on council incentives for growth (as a specific workstream within Going for Housing Growth). By 30 November 2024.
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The Treasury is leading on the establishment of a National Infrastructure Agency (NIA) for New Zealand by repurposing Crown Infrastructure Partners in order to unlock access to more capital for infrastructure, act as the Government’s shopfront to facilitate private sector investment, administer central Government infrastructure funds, provide specialised project support services, and to help deliver regional deals. To be established on 1 December 2024.
With the establishment of the NIA, roles and responsibilities of other parts of the Crown’s infrastructure system will change: notably The Treasury will assume the Infrastructure Commission’s responsibility for PPP policy and take a primary role in supporting the Minister for Infrastructure, and Rau Paenga will be required to provide project delivery services to those Crown agencies with limited capacity to deliver infrastructure.
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Minister for Infrastructure to provide advice on modernising the Crown’s approach to PPP procurement in order to make improvements based on national and international experience to date, including guidance on amendments to the PPP procurement process, contracting models and standard form contract suite. Drafting changes to the NZ PPP standard form contract suite to be instructed from late 2024.
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Cabinet decisions on funding and financing tools to enable more housing to be built to be taken by 31 December 2024.
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The private sector, NGOs, local government and communities are invited to submit their infrastructure priority proposals as part of the Government’s plan to introduce and implement a 30-year National Infrastructure Plan. The Infrastructure Commission is inviting submission of proposals to the IPP now. The first call for proposals closes at the end of 2024. Assessment will occur in 2025 ahead of release of the IPP in April 2025.
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Cabinet to consider and make decisions on suggested reforms of the IFF Act to improve functioning of the levy model and reduce cost of transactions. By 31 December 2024.
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Minister of Transport to provide advice, and Cabinet to take decisions, on enhancing tolling settings, including legislative changes required to enable more tolling (and more effective tolling). By 31 December 2024.
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The Government aims to introduce legislation to facilitate offshore wind development by 31 December 2024, with legislation enacted during 2025, first feasibility permit round in late 2025, and first feasibility permits granted in 2026.
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The Government aims to pass legislation to reverse the ban on oil and gas exploration by 31 December 2024, with the Crown Minerals Amendment Bill introduced into Parliament on 26 September to give effect to this policy.
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Updated guidance on the Government’s process for assessing unsolicited proposals to be published by 31 December 2024.
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The Government issued a Regional Deals Strategic Framework earlier this year, setting out commitments to institute long-term regional deals and to provide guidance for discussions between central government, local government, and relevant private sector entities to deliver regional deals. Cabinet agreement to begin negotiations on regional deals to be sought by 31 December 2024, in order to enable the first deal to be finalised in 2025. See our article here.
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The Government is to introduce further legislation in December 2024 as part of Local Water Done Well, which will establish the enduring settings for the new water services system and a range of changes to the water services regulatory system. See our article here.
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Beyond 2024: below are some key updates anticipated in the infrastructure sector in 2025, which we may expect to hear more about in Q4 2024 as the year draws to a close.
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As noted above, the Government plans to develop a 30-year National Infrastructure Plan to understand what infrastructure is needed in New Zealand, what investment is planned over the short to medium term, and where the gaps are in terms of infrastructure need and investment planned. To be delivered to the Minister for Infrastructure in 2025.
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The Government is reviewing the Public Works Act 1981 to make building critical infrastructure in New Zealand easier and more efficient. Expert panel convened to provide specialist advice on reforms, from July to September 2024. Legislation giving effect to changes intended to be introduced to Parliament in mid-2025.
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Fast-track Approvals Bill
Resource Management Act replacement
Value capture
Infrastructure funding settings
Council incentives for growth
Establish the National Infrastructure Agency
Public Private Partnerships
Funding and financing for housing
Infrastructure Priorities Programme
Infrastructure Funding and Financing Act reform
Tolling reform
Offshore wind
Oil and gas
Unsolicited proposals
Regional deals
Water services
Development of National Infrastructure Plan
Amendments to the Public Works Act