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PPPs and infrastructure funding and finance
New Zealand faces a significant infrastructure deficit, requiring substantial investment in new projects and upgrades to meet the demands of a growing population and economy.
The new coalition Government has indicated it is open to Public-Private Partnerships (PPPs) and other private finance models to deliver projects. Creating new funding streams to underpin the financing of projects looms as a major challenge.
Simpson Grierson, New Zealand's leading infrastructure law firm, is well positioned to advise on the changes that are coming. Our specialists have a long track record of advising on funding and financing of infrastructure projects, including PPPs, under previous government programmes.
Our experience includes current initiatives such as the major Infrastructure Funding and Financing (IFF) programme, which is now delivering important urban development projects across New Zealand. Importantly, we have expertise on a range of other revenue generation and funding tools, including time-of-use charging, development contributions, and value capture.
Simpson Grierson is committed to facilitating sustainable growth for the nation's future, including through providing high quality thought leadership and industry support. As part of this commitment, Partner Josh Cairns led a panel of experts discussing funding models at the 2024 Building Nation’s Conference.
Work Highlights
IFF programme design
We were the principal adviser to the New Zealand Government on the design and implementation of the Infrastructure Levy Model, a new limited-recourse funding and financing tool enabled through the enactment of the Infrastructure Funding and Financing Act 2020 (IFF).
By using an innovative special purpose vehicle (SPV) structure, IFF provides an alternative funding and financing model for infrastructure needed by high growth councils that they otherwise could not deliver due to funding and financing constraints.
IFF programme roll-out
We have advised Treasury on the first projects rolled-out under IFF - the Western Bay of Plenty Transport System Plan and Wellington City’s new Sludge Minimisation Facility at Moa Point.
Transmission Gully PPP
Transmission Gully is a $1 billion+ roading project north of Wellington, which opened in 2022 and was delivered as a PPP.
We acted in two roles on this project:
- as the New Zealand legal adviser to the Wellington gateway Partnership, at the consortium level. This gave us informed insights as to the requirements of a sponsor in a PPP project at all levels of the project
- as legal adviser to the successful joint venture of Leighton Contractors Pty Limited and HEB Construction Limited in all aspects relating to the design and construct element of this project.
Kainga Ora
We acted for Kainga Ora (a Crown agency that provides rental housing for New Zealanders in need) on the $2 billion Crown funding arrangements for the Large Scale Projects programme in Auckland.
Other New Zealand PPP projects
We have acted on many of New Zealand’s major PPPs, advising clients in various roles (Consortium, SPV, Owner, Contractor, Consultant). These include:
- Hobsonville School
- Wiri Prison
- Puhoi to Warkworth SH1 diversion
- Spark (Vector) Arena
- Britomart Above Ground Development
- Penlink Toll Road.
Members of our team also have significant international experience on PPPs, and other project structures, while working with law firms in the UK and Australia.