The June On Schedule podcast featuring Vicente Valencia, highlights the compelling case for increased use of public private partnerships (PPPs) to fast-track infrastructure delivery in New Zealand. In somewhat of a wake-up call to political leaders, one of the key outtakes was that if New Zealand wants world-class infrastructure delivered within a decade – not generations – we must embrace PPPs as a central tool in our development arsenal.

Why PPPs work

PPPs are not simply a funding mechanism, they’re also a delivery model. They combine the public sector’s need for infrastructure with the private sector’s appetite for risk, capital and efficiency. As Vicente eloquently pointed out, PPPs allow for the transfer of significant risks – such as cost overruns and delivery delays – away from taxpayers and towards private partners who are better equipped to manage them. PPPs also give the government access to global infrastructure expertise of the kind that is not normally available in New Zealand.

This model brings cost discipline, innovation and speed. PPPs demand that infrastructure projects are shovel-ready and structured, with clear milestones and outcomes. It’s a model that has delivered success globally. I had the privilege of working with the government on arguably New Zealand’s most successful PPP – the ultrafast broadband project. New Zealand’s fibre-based broadband is the envy of the world, and whether I wore a taxpayer hat or an investor hat, it was a good deal. Australia, Canada and the UK have all transformed transport, education, healthcare, and social infrastructure through successful PPPs.

The political gap in New Zealand

Unfortunately, history has shown, New Zealand has been reluctant to fully engage with PPPs. The result? Delays, budget blowouts and a credibility gap with the private sector. Interestingly, both sides of the aisle in Australia support PPPs, a more mature approach that New Zealand would benefit from.

It is clear that political inconsistency is New Zealand’s biggest infrastructure risk. We lack a stable pipeline of projects that investors can rely on. When governments change, priorities shift and years of planning are often tossed out. This uncertainty deters investment and drives talent offshore. This is why NRC has been calling for a 50-year roading infrastructure pipeline, out of reach of the political cycle. Pleasingly, the Infrastructure Commission and the National Infrastructure Agency are both working to build this pipeline.

The talent issue is particularly pressing. Infrastructure experts – planners, engineers, financiers – need consistent, long-term visibility of work. Without that, they leave. New Zealand risks losing its best people to Australia and beyond, where the infrastructure pipeline is stable, politically bipartisan and decades long.

A better way forward

What New Zealand needs is not just more PPPs – it needs political courage and clarity. Something we are starting to see signs of with the Coalition Government and Minister Bishop and his predecessor Minister Brown.

To meaningfully move forward we must:

• Establish a cross-party infrastructure accord: We need a bipartisan agreement on New Zealand’s long-term infrastructure priorities and be clear on the projects that will meet them. This must outlive election cycles and remove the temptation for successive governments to ‘re-litigate’ major projects. Without political consistency, there can be no confidence from investors.

• Maintain a clear and transparent pipeline: The New Zealand Infrastructure Commission must be empowered to maintain a real-time, 10- to 30-year pipeline of projects. This transparency gives investors confidence and gives local industry the ability to plan workforce and resources.

• Embed PPP expertise in government: Government agencies often lack the expertise to structure and negotiate complex PPPs. Australia’s strength lies in embedding commercial expertise within the public sector. New Zealand must invest in similar institutional knowledge and retain it across successive governments.

• Incentivise private capital: Globally, pension funds, sovereign wealth funds and institutional investors are seeking long-term, stable infrastructure assets. New Zealand must be open for business. That means clearly structured PPP frameworks, streamlined procurement processes, and competitive returns.

From 50 years to 10

Vicente is correct. New Zealand doesn’t have 50 years to get this right. Our housing crisis, transport bottlenecks and outdated water infrastructure are already costing us billions in lost productivity, social cohesion and public health. The private sector is ready. The capital exists. The expertise is here.

Now we just need the political will to make it happen.

We need to stop treating PPPs as a last resort and start seeing them for what they are: a smart, effective way to deliver public outcomes. Countries that have embraced PPPs are building faster, more resilient infrastructure. There’s no reason we can’t do the same.

In 10 years, New Zealand could have delivered modern hospitals, better roads, efficient public transport and safer water systems. Or we could still be arguing about business cases and shifting goalposts.

The choice is ours. And it begins with a change in mindset – one that sees the private sector not as a threat, but as a partner.