10 May 2018
“The Government’s announcement that this year’s Budget will allocate $42 billion to capital investment over 5 years will
provide a welcome boost for regional and urban development, but speed in establishing a specialised strategic
procurement agency is now a priority to ensure projects are sequenced and delivered at best value,” said Stephen Selwood
CEO of Infrastructure New Zealand.
“Details of the exact programme will become clear on Budget day, but with major investment needs in health, education,
justice, housing and of course transport, the challenge for the Government will be getting best value out of its
programme.
“There is a risk that costs will inflate if project sequencing stretches the market by location, portfolio or skillset.
“A carefully-conceived project pipeline, developed with the industry and comprising the full spectrum of central and
local government major projects, is essential to delivering a programme this large.
“Just as important will be the way in which projects are procured.
“Infrastructure Minister Shane Jones’ procurement agency idea now takes on immediate priority, not only to develop the
project pipeline but also to ensure that hospitals, schools, roads, railways and other infrastructure are delivered on
time, to specification and to budget.
“Recent reports that the SuperFund has made an unsolicited bid to deliver light rail in Auckland underline how
sophisticated major project procurement has become.
“It’s great news that investors are looking at national infrastructure as an investment opportunity and we need serious
expertise across government to ensure this type of approach will be a success.
“A specialised procurement agency will consolidate public procurement expertise and enable the 5 year $42 billion
pipeline to be delivered in a way which benefits all New Zealanders,” Selwood says.
ENDS