DECEMBER 2019

Building for generationsto comeEarlier this month the Government announced a $12 billion investment in short andlong-term transport, health, regional investment and public estate carbonisationinfrastructure projects.

The spending is to be funded mainly from new borrowing. There is $8 billion to be spent onspecific "shovel-ready" projects to be detailed early next year, including $6.8 billion on transport,mostly for roads and heavy rail. Hospitals will get $300 million, regional investment $300 million,and public estate decarbonisation $200 million. School property improvements will get an already

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Update From NZInfrastructure Commission,Te Waihanga

announced $400 million. Finance Minister Grant Robertson said the investment would providemuch needed improvement to New Zealand’s infrastructure, certainty to the construction sectorand a boost to the economy and jobs.

Taking care of the troopsThe wellbeing of New Zealand soldiers spurred recent discussions between the InfrastructureCommission, Te Waihanga (Infracom or Te Waihanga for short), the New Zealand Defence Forceand market participants, as part of a wider upgrade to the Defence Estate in New Zealand. TheAccommodation, Messing and Dining Modernisation Programme (AMDM) will upgrade barracksacross the Defence Estate.

The Defence Force has chosen Linton Military Camp near Palmerston North as the focus of thefirst phase of the AMDM Programme. As part of developing the detailed business case for Linton,the Defence Force is exploring whether to procure the project through a public private partnership.

The Linton business case is expected to be completed by the third quarter of 2020, withconstruction expected to begin in 2022.

Government seeks furtheranalysis of Upper North IslandSupply Chain StrategyInfracom will provide the Government with independent advice on the Upper North Island SupplyChain Strategy following the final report by the UNISCS Working Group, released on 12December. The Government says the report raises important economic, social and environmentalquestions. One of the report’s recommendations is to move freight operations from the Ports ofAuckland to Northport and Tauranga. The report includes priorities identified by the working groupfor investment in rail, roads and other supporting infrastructure. Infracom’s advice will complementthe analysis being led by the Ministry of Transport which is due to be complete in May 2020.

Sharing plans for betterinfrastructureWork at Infracom is now well underway, as we begin developing our 30-year strategy for infrastructure and systems which enhance New Zealanders’ wellbeing and prosperity. This willbe a collaborative effort with central and local government, iwi, as well as industry and sectorpeak bodies. We are looking forward to actively consulting with stakeholders in the New Year. Wewant to ensure Kiwis can go about their daily lives, accessing clean and safe water, sustainableenergy, efficient transport networks and modern, and fit-for-purpose public services.

Part of our role is to encourage government agencies and councils to share their future buildplans to provide a common view of the work ahead. In November, Infracom released a secondpipeline of transport, water, energy and building projects. We collated data from 15 organisationsobout more than 500 projects with a combined value of over $21bn. This iterative pipelineprovides guidance and greater certainty to the market and will be refreshed again in March 2020.Procuring agencies have been sent updated guidance to assist. Alongside our 30-year strategy,the pipeline will help pave the way for a more seamless approach to infrastructure.

We look forward to engaging with you in 2020. Until then, Infracom wishes all our stakeholders arelaxing and enjoyable festive season.

The Infrastructure Commission, Te WaihangaThe Commission was created to improve New Zealand’s infrastructure procurement and strategicplanning. It was formed in late September 2019, and incorporates the former TreasuryInfrastructure Transactions Unit. Together with stakeholders, Te Waihanga will develop a 30 yearinfrastructure strategy and a quarterly pipeline of credible projects, committed to over the next tenyears.