Government releases updated PPP guidance to boost NZ infrastructure delivery

Infrastructure Minister Chris Bishop and Under-Secretary Simon Court say the refreshed framework is crucial to modernising how New Zealand delivers large-scale public assets.

The Government has released updated guidance for Public-Private Partnership (PPP) projects, aiming to bring greater clarity, consistency, and confidence to both the private sector and government agencies involved in major infrastructure development. Infrastructure Minister Chris Bishop and Under-Secretary Simon Court say the refreshed framework is crucial to modernising how New Zealand delivers large-scale public assets.

Minister Bishop emphasised that PPPs are a well-established tool in New Zealand’s infrastructure landscape. Since 2011, eight PPPs have been completed, including:

• Three correctional facilities

• Two Roads of National Significance

• Three bundles of primary and secondary schools

“These projects have demonstrated strong performance, often outperforming similar developments delivered through traditional methods,” Bishop said. He noted that modular design innovations and asset management lessons from these PPPs are already being adopted across other government projects.

A Stronger, More Competitive PPP Model for New Zealand

In November 2024, the Government released a PPP Blueprint, outlining its future approach to partnership-driven infrastructure delivery. The updated guidance incorporates lessons from current PPPs, international best practice, and market feedback.

Under-Secretary Court said the response at the 2025 Infrastructure Investment Summit proved that New Zealand’s refreshed approach is gaining global attention.

“For years, New Zealand has struggled with an overloaded pipeline and deteriorating public buildings, while places like Australia were delivering modern schools, hospitals, and transport networks through well-designed PPPs,” Court said. “A robust PPP model helps us tap into global expertise, innovation, and investment.”

The Treasury’s updated guidance builds on the Blueprint to help agencies deliver projects more efficiently, transparently, and competitively.

Key Improvements in the Updated PPP Guidance

The new guidance introduces several important changes intended to streamline procurement, reduce bid costs, increase price certainty, and support long-term infrastructure resilience:

Bid Cost Reimbursement

• Clear advice for agencies on offering bid cost reimbursement

• Designed to reduce financial barriers for bidders and encourage stronger market competition

Price Validation

• Guidance on when and how price validation should occur

• Requires agencies to undertake more rigorous testing of cost estimates to ensure bids represent fair market value

Works Completion Regime

• A more flexible, responsive framework for completing project works

• Introduces options such as split or staged completion, enabling smoother delivery on complex projects

Expansions and Augmentations

• Allows PPP projects to expand over time where value for money can be demonstrated

• Helps future-proof infrastructure assets as populations grow or service needs change

Crown Capability and Resourcing

• Clear expectations for capability and staffing within agencies delivering PPPs

• Ensures government is equipped to manage complex partnerships effectively

Crown Capital Contributions

• Guidance on when and how government capital contributions can be incorporated

• Ensures contributions are used strategically to improve project outcomes

Strengthening NZ’s Infrastructure Pipeline

The updated guidance aims to re-energise New Zealand’s infrastructure sector by creating a more predictable, investable environment for both domestic and international partners. With ageing assets, rising demand, and constrained public budgets, PPPs are expected to play an increasingly important role in how New Zealand funds and delivers essential infrastructure.

Minister Bishop said the refreshed model ensures the country can develop durable, modern infrastructure that stands the test of time. “This is about getting projects built—properly, efficiently, and in ways that deliver long-term value for taxpayers.”