Govt Launches Major Defence Infrastructure Upgrade Plan to 2040

Minister Penk says the operational strength of the New Zealand Defence Force (NZDF) relies on a resilient and modern Defence estate.

 

The Government has announced a sweeping long-term plan to modernise New Zealand’s Defence Force infrastructure, describing it as a generational investment that will boost military readiness and create jobs across the country. Associate Defence Minister Chris Penk says the programme will ensure the Defence Force has the modern facilities it needs to operate effectively in an increasingly complex global security environment.

A Critical Upgrade for National Security

Minister Penk says the operational strength of the New Zealand Defence Force (NZDF) relies on a resilient and modern Defence estate.

“The national security of New Zealand depends on a strong Defence estate that empowers the Force to perform at its best,” he said. “Modern facilities support personnel to train, deploy and operate equipment at their peak, while safe and healthy workplaces and homes are essential for their wellbeing.”

But decades of underinvestment have left much of the estate outdated. According to current assessments:

• Over 70 percent of NZDF infrastructure has less than 20 years of useful life remaining

• Many facilities are aged, fragile, and prone to failure

• Key operational areas are at risk of closure without urgent renewal

Penk says failing to act would weaken New Zealand’s ability to maintain readiness, limit training opportunities, and increase safety risks for personnel.

Defence Estate Portfolio Plan (DEPP): A Vision Through to 2040

To address this, the Government has released the Defence Estate Portfolio Plan (DEPP) — a long-term strategy outlining how bases, camps, and training areas will be modernised by 2040.

The DEPP:

• Sets investment priorities for the $2.5 billion allocated in the Defence Capability Plan 2025 (subject to annual Budget processes)

• Replaces earlier regeneration plans that focused on smaller, isolated upgrades

• Provides a holistic, portfolio-wide approach that integrates service-critical assets, housing, training grounds, and essential utilities

Penk says the plan ensures “our camps, bases and training areas are fit for purpose and equipped to meet the growing demands on a modern Defence Force.”

Approval of the Future Naval Base Programme

One of the centrepieces of the DEPP is Cabinet’s approval of the Future Naval Base Programme, focused on transforming the Devonport Naval Base—New Zealand’s only naval port.

Devonport’s current infrastructure is struggling to meet the Navy’s operational and training needs. The modernisation programme will deliver:

• New accommodation blocks and improved facilities for personnel

• Upgraded training infrastructure

• Wharf improvements to support fleet operations

• Enhanced horizontal infrastructure, including power, water, and access routes

• Complementary upgrades at related sites: Narrow Neck, Kauri Point, and the Tamaki Leadership Centre at Whangaparāoa

The upgrades will be carried out in tranches, with the first tranche already funded with $25 million in Budget 2025.

“These upgrades are essential to ensuring the Royal New Zealand Navy can operate safely, effectively, and with modern support systems behind them,” Penk said.

Five Additional Programmes Strengthening the Wider Defence Estate

The DEPP doesn’t stop with the Navy. It supports five major ongoing programmes critical to Defence capability:

► Defence Estate Regeneration Programme (DERP)

Renewing ageing, service-critical infrastructure across camps, bases, training areas, and regional facilities.

► Horizontal Infrastructure Workstream

Upgrading foundational services such as water, electricity, ICT networks, stormwater systems, and site roads to bring Defence facilities up to modern standards.

► Homes for Families Programme

Delivering modern, warm, safe housing for Defence families at multiple locations, supporting wellbeing and retention.

► Ōhakea Infrastructure Programme

Targeted upgrades at RNZAF Base Ōhakea, ensuring infrastructure keeps pace with current and future Air Force capability.

► Accommodation, Messing and Dining Modernisation Programme

Improving barracks, dining halls, kitchens, and communal facilities to raise living standards and support personnel morale.

Together, these programmes form an integrated national effort to renew and future-proof the Defence estate.

Boosting Jobs and Regional Economies

Beyond improving Defence capability, Penk says the plan will inject significant activity into New Zealand’s building and construction sector over the next decade and beyond.

“Renovations and new projects across bases and camps nationwide will create jobs and economic opportunities in local communities for years to come,” he said.

Regions such as Auckland, Manawatū, Canterbury, and the Wellington area are expected to see substantial investment and project activity.

Strengthening Defence for a New Strategic Environment

Minister Penk emphasised that the investment comes at a time of rising global uncertainty, evolving military technology, and increasing pressure on Defence readiness.

“This Government is investing in the foundations of our Defence Force. We are building the infrastructure that enables capability, supports our hard-working servicemen and women, and safeguards our country,” Penk said.

By 2040, the Defence estate will be significantly modernised, more resilient, and better tailored to the complex operational demands of the 21st century — ensuring New Zealand remains ready to meet future challenges at home, in the Pacific, and around the world.