The prototype pipeline is initially focused on five capital intensive government agencies:
- The Department of Corrections
- The Ministry of Education
- The Ministry of Health
- The New Zealand Defence Force and
- The New Zealand Transport Agency
There are 174 projects in the pipeline. As the pipeline matures in both quantum and breadth a greater level of pipeline data and associated analysis will be available.
|Agency||Number of projects in the pipeline|
|Department of Corrections||12 (7%)|
|Ministry of Education||52 (30%)|
|Ministry of Health||14 (8%)|
|New Zealand Defence Force||52 (30%)|
|New Zealand Transport Agency||44 (25%)|
The five agencies have estimated dates for the different project phases from business case through to project completion. This does not include the phasing of capital spend.
|Project phase||Number of projects in the pipeline|
|Business / Investment Case Phase||84 (48%)|
|In procurement||72 (41%)|
|Approaching/Under construction||18 (10%)|
As expected, given the initial stage of the pipeline, a large number of projects are at the business case phase (48% or 84 projects). Reference to the business case phase in the pipeline means that commitment has been given to progress work to the point of final approvals. It does not mean that there is absolute certainty that the project will progress beyond this point.
Different levels of approval are required under Cabinet Office circular (15) 5. The government’s Investment Management System requires that for most investments a business case is developed prior to final approval.
The majority of projects (55 per cent or 96 projects) are expected to be completed between 2019 and 2021.
For the purposes of the prototype pipeline, the agencies provided the Infrastructure Transactions Unit with value ranges for each of the projects, rather than precise values. Some projects are still in business case phase and the project value will depend on final approvals.
The Infrastructure Transaction Unit has estimated the total value of the pipeline at $6.1 billion. At this stage this figure should be viewed with caution.
Of those projects where a value range has been disclosed, 80 per cent of the projects in the pipeline are small i.e. below $25 million - primarily school infrastructure and defence initiatives.
Projects in the range of $25-50 million account for 8 per cent of projects (where a value range has been disclosed) - primarily transport, corrections and health initiatives.
There are 10 projects valued at over $100 million, including the Dunedin Public Hospital rebuild.
The Ministry of Education and New Zealand Defence Force are together responsible for 73% (104) of the pipeline projects.
All of the New Zealand Defence Force’s 52 projects are in the business case phase. As part of the Defence Estate Regeneration Programme, all projects will require individual business case approval. The projects represented by the New Zealand Defence Force are anticipated to span housing, transport, ports and airfield infrastructure as well as the development of utilities, bases and hospital facilities.
The Ministry of Education project pipeline comprises 52 current projects, all of which are nearing or are currently in procurement. The Education infrastructure initiatives are a split between refurbishment of current school assets or investment in new school property with the majority of projects expected to be delivered within the Auckland region.
The New Zealand Transport Agency (NZTA) has included only 44 projects in the pipeline at this time. The Infrastructure Transactions Unit understands that the NZTA is currently reviewing its pipeline of projects and will provide a further update shortly.
The Ministry of Health is responsible for 14 projects, including the Dunedin Public Hospital rebuild representing three separate projects:
- site clearance commencing 2020
- the Ambulatory Services Centre Stages 1 and 2, and
- the Acute Building and remainder of the campus.
The Department of Corrections is responsible for 12 projects in the pipeline, including the Waikeria Prison development project which is already in construction. The majority of the Department of Corrections’ infrastructure investments are targeted toward prison capacity and facility improvements. Twelve of the Department’s projects are currently under construction with the remaining four initiatives nearing or currently in procurement.
This information will be updated in early June, after Budget 2019.