New Zealand to reform infrastructure decision-making
- Sydney (22 April)
New Zealand’s Infrastructure Commission – an independent body – will give the New Zealand Government clear advice on infrastructure investment proposals, under reforms announced on 22 April.
“We want experts to give us their free and frank [advice]; is it a ‘yes’ or a ‘no’,” Infrastructure Minister Chris Bishop said in a speech at the New Zealand Infrastructure Commission Symposium.
“The Commission will analyse all major infrastructure investments funded by central government, including hospitals, schools, prisons, courthouses, and more,” Bishop added.
The Infrastructure Commission will give Ministers advice on whether investments meet a public need, represent value for money, and are deliverable, Bishop and Finance Minister Nicola Willis said in a joint statement.
Proposed investment projects currently pass through multiple rounds of review – which do not provide clear recommendations – prior to Ministerial approval. But the review process does not support decision-making, according to the Ministers.
“[Reviews] like the Treasury’s Gateway Review and Infrastructure Commission’s Infrastructure Priorities Programme are causing duplication and overcomplication for both Ministers and agencies,” Willis said.
The Treasury Gateway Review scheme assesses whether developers will be able to successfully deliver projects, based on interviews and document reviews. Treasury officials give projects one of six ratings – ranging from red to green. Red projects are unlikely to be deliverable, while green projects have a high likelihood of being delivered on time.
The Infrastructure Commission’s Priorities Review similarly gives projects ‘red’, ‘yellow’, or ‘green’ ratings on multiple assessment criteria related to deliverability, value for money, and alignment with official infrastructure strategies.
The Infrastructure Commission will replace both schemes with a single new assessment under the reforms.
In February, the Commission recommended that the New Zealand Government transfer infrastructure investment advice functions to a single government agency, in its National Infrastructure Plan.
The Government based its reforms on the Plan, which it will formally respond to in June, Bishop said.
New Zealand’s government has a mixed investment record. In 2023, New Zealand’s Auditor General found that funding applications for the Provincial Growth Fund (PGF) were assessed inconsistently against public objectives.
Crown Regional Holdings (CRH), a state-owned company that manages PGF holdings, recorded NZ$28 million of loan impairments on a NZ$433 million loan book in its 2025 annual report.
By Avinash Govind