Government’s announcement that this year’s Budget will allocate $42 billion to
capital investment over 5 years will provide a welcome boost for regional and
urban development, but speed in establishing a specialised strategic
procurement agency is now a priority to ensure projects are sequenced and
delivered at best value,” said Stephen Selwood CEO of Infrastructure New
“Details of the exact
programme will become clear on Budget day, but with major investment needs in
health, education, justice, housing and of course transport, the challenge for
the Government will be getting best value out of its programme.
“There is a risk that
costs will inflate if project sequencing stretches the market by location,
portfolio or skillset.
project pipeline, developed with the industry and comprising the full spectrum
of central and local government major projects, is essential to delivering a
programme this large.
“Just as important will
be the way in which projects are procured.
Minister Shane Jones’ procurement agency idea now takes on immediate priority,
not only to develop the project pipeline but also to ensure that hospitals,
schools, roads, railways and other infrastructure are delivered on time, to
specification and to budget.
“Recent reports that
the SuperFund has made an unsolicited bid to deliver light rail in Auckland
underline how sophisticated major project procurement has become.
“It’s great news that
investors are looking at national infrastructure as an investment opportunity
and we need serious expertise across government to ensure this type of approach
will be a success.
procurement agency will consolidate public procurement expertise and enable the
5 year $42 billion pipeline to be delivered in a way which benefits all New
Zealanders,” Selwood says.
For further information and comment contact
Stephen Selwood on 021 791 209