Years of underinvestment in crucial infrastructure have created an infrastructure deficit of $210 billion over the next 30 years. According to the Infrastructure Commission – Te Waihanga, New Zealand has approximately $92.15 billion worth of infrastructure projects planned and in its pipeline. Most of these projects are slated to start in the next three to five years. To close the current infrastructure deficit, Sense Partners2 has estimated the pipeline would need to grow by as much as $140 billion over the next 30 years.
The Infrastructure Commission: Te Waihanga coordinates information on the infrastructure pipeline. Uncertainty around the pipeline is making it virtually impossible for the infrastructure sector to plan the resources needed to fill the infrastructure deficit, ensure that market participants are not competing for the same pool of resources, and ensure the right skills that cannot be locally sourced are in the country at the right time.
With certainty around project timing, funding and procurement, government policy and decision-making, the sector can better invest in labour and capital, and provide the resources necessary to deliver projects.
New Zealand's infrastructure pipeline presents an opportunity to modernise critical sectors such as transportation, housing, energy, and digital connectivity. By investing in a well-planned and sustainable infrastructure network, the country can foster economic growth, create jobs, and enhance liveability for both urban and rural communities.
Transportation: Enhancing connectivity through improved roads, railways, and public transportation systems can enhance mobility, reduce congestion, and increase economic productivity. Investments in the infrastructure pipeline can facilitate easier access to jobs, services, and recreation opportunities, promoting a more inclusive society.
Housing: Addressing the housing crisis through the infrastructure pipeline can help meet the growing demand for affordable and sustainable housing. Upgrades and expansions to existing housing stock, combined with the development of new, energy-efficient homes, will not only provide shelter but also reduce carbon footprints and improve overall living standards.
Energy: The infrastructure pipeline provides an opportunity to invest in renewable energy sources and improve energy distribution networks. Transitioning to clean and sustainable energy systems will not only mitigate the environmental impact but contribute to long-term energy security and cost savings.
Digital Connectivity: As the world increasingly digitises, ensuring reliable and high-speed internet connectivity to all corners of New Zealand is imperative. Expanding broadband infrastructure, particularly in rural areas, will enable equitable access to education, healthcare, and economic opportunities, bridging the digital divide.
Although the infrastructure pipeline presents numerous benefits, it is not without its challenges. Addressing these challenges will require comprehensive planning, careful execution, and a collaborative approach.
Funding: Financing major infrastructure projects can be a significant hurdle. Striking a balance between budgetary constraints, public-private partnerships, and seeking alternative financing options will be crucial to ensure sufficient investment.
Environmental Sustainability: As New Zealand seeks to reduce its carbon emissions and transition to a greener economy, infrastructure development must align with sustainability goals. Minimising the ecological impact of major construction projects, embracing renewable energy, and incorporating climate change resilience measures are essential elements in the infrastructure pipeline.
Stakeholder Engagement: Successful implementation of the infrastructure pipeline requires robust stakeholder engagement. Ensuring communities, local businesses, and indigenous groups are involved in the decision-making process can contribute to the social acceptance and integration of projects.
Skills and Capacity: Executing large-scale infrastructure projects requires a skilled workforce and technical expertise. Investing in education and training programs to develop a pipeline of skilled professionals will be vital to meet the demands of an ambitious infrastructure development agenda.
New Zealand's infrastructure pipeline presents an unprecedented opportunity to transform the nation's social, economic, and environmental landscape. By prioritising sustainable development, fostering public-private collaborations, and engaging diverse stakeholders, we can successfully navigate the challenges and unlock the full potential of the infrastructure pipeline. As we look towards the future, it is essential to remember that a well-planned and inclusive infrastructure development agenda is not simply about physical structures; rather, it is about building a prosperous, resilient, and equitable society for generations to come.
It's important that New Zealand has a clear and certain pipeline which will let the sector build the infrastructure it needs more efficiently and, more importantly, reduce the burden on the taxpayer. The new Government can support this by ensuring the Infrastructure Commission: Te Waihanga and Treasury create their Infrastructure Priority List promptly, well ahead of the currently scheduled 2026 timeframe, and having it undergo an independent expert review.
