UKTI NZ - Infrastructure Opportunities in New Zealand

UKTI New Zealand – Infrastructure Opportunities in New Zealand 06/11/2012 1

Infrastructure Opportunities in New Zealand
Paul Tuckley
Trade Development Manager, UK Trade & Investment New Zealand


National Infrastructure Plan 2011

• Produced and Released by National Infrastructure Unit 2011
• Extensive Consultation with Government and Industry
• Relationships are Critical – Key Relationship between Regional and National
Government
• Further Research into infrastructure market critical to achieving vision of plan
– Demand management and modelling.
– Creating national datasets of projects and performance measures.
– Benefits and costs of alternative procurement models.
– Regulatory barriers – the real costs.
– Resilience – understanding network resilience issues relating to assets, coordination
and end-user expectations

• Delivered by Government agencies


Implementation of the National Infrastructure Plan

The focus for 2012 is on three broad areas of work:
• Work area 1: on-going engagement with stakeholders, especially the private sector and
Local Government.
• Work area 2: working with the infrastructure agencies to progress co-ordinated work
programmes to achieve the goals for each sector.
• Work area 3: the four priority workstreams because of their importance in the current
environment or their criticality to the long term direction of the Plan.
1. Capital Intentions Plan
2. Demand Management
3. Performance Indicators Framework
4. Resilience


National Infrastructure Plan Objectives

• Outlines Government’s intentions for Infrastructure Development over the next 20
years
• Directional rather than directive and established to provide a framework to support
infrastructure development
• Focus on rebuild of Christchurch and Auckland Infrastructure
• $25Billion in expenditure planned for the next four years over five main areas of
infrastructure Development
1. Transport
2. Telecommunications
3. Energy
4. Water
5. Social

Christchurch – The Facts

• 2 Major Earthquakes and 1000’s of
aftershocks
• 100000 homes damaged or destroyed
• 60% of businesses in City displaced
• 1200 buildings demolished in CBD
• 500 Kms of damage to water and
wastewater systems
• Severe disruption and damage to road,
rail, communications, water, energy and Source: Wordpress

social infrastructure


Christchurch

• Government Appoints Minister for Earthquake Recovery
• Estimates for Rebuild of between $15-$30billion
• Recovery to take at least 10 years
• Government committed $8billion
• Establishment of Canterbury Earthquake Recovery Authority (CERA)
• CERA Role to oversee existing operations, demolition and work necessary
for effective coordination and recover of Christchurch
• Stronger Canterbury Infrastructure Rebuild Team (SCIRT) Established.


Christchurch Vision and 100 Day Plan

• 21st Century City of the
future?
• 100 Day plan providing
framework for
redevelopment of the
City
• UK capability provides
opportunity for
partnering

Source: Christchurch Central Development Unit


Christchurch – Issues and Challenges going forward

• Immediate – Restore basic infrastructure to all residents and buildings
affected
• Find a balance between the need to restore confidence and services against
the wider issue of redesigning and building New Zealand’s second largest
city
• Impacts on population and economic growth in region
• Capacity of construction sector to meet demands in Christchurch and wider
New Zealand infrastructure projects
• Impact on industry standards and building codes


Auckland

• New Zealand’s largest city

• Significant future population and
economic growth

• Royal Commission resulted in
amalgamation of 8 district councils into
one single city

• Auckland Council has ability to
– Make key Strategic decisions

– Develop expertise and understanding of
economic and population pressures facing the
Credit to Ed Freeman, Photodisc, Getty Images city

– Develop expertise in project assessment and
delivery of large and complex infrastructure
networks

The Auckland Plan

• Broad Based Strategy for Growth
• 30 year economic, environmental, social and cultural strategy
• Objective to make Auckland the Worlds most ‘liveable city’
• Key aspects of the plan
– Population growth and demographic change
– Climate change and energy security
– International economic competitiveness
– Social and economic inequalities
– Environmental quality
– Infrastructure planning, provision and funding


Council Controlled Organisations

• Auckland Plan to be delivered by the
Council Controlled Organisations
– Auckland Council Investments Ltd
– Auckland Council Property
– Auckland Tourism, Events and Economic
Development
– Waterfront Auckland
– Regional Facilities Auckland
– Watercare Services

• Current Strategies & Plans developed
by CCO’s include
– Draft Economic Development Strategy
– City Centre Master plan
– Draft Waterfront Plan
Credit to Vetta, Getty Images


Infrastructure Projects

Credit to Chris Ryan, OJO Images, Getty Images

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UKTI New Zealand – Infrastructure Opportunities in New Zealand 06/11/2012

Transport Infrastructure

• A flexible and resilient transport system
• A network of priority roads to ease congestion
• Provide a transport system that is robust and
effective
• A rail system that enables efficient movement of
freight and passengers
• Sea and airports linked to the overall transport
network
• New Zealand Transport Agency investing $12 Credit to Malcolcm Fife, Photodisc, Getty Images

billion over next five years in transport projects

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Transport Projects

• Wellington regional rail network
upgrades
• ‘Transmission Gully’ bypass
• Auckland rail network upgrades
• Auckland Central Rail Loop
• METW and East West Link
• 2nd Harbour Crossing
• Integrated public transport network for
Christchurch region
– Light rail
– Improved options for buses
– Cycle lanes and better routes for pedestrian
Credit (c) Punchstock

15

Communications

• Development of the Ultra Fast Broadband
Network (UFB) for urban areas and the
rural Broadband initiatives

• Opportunities for UK companies in services
and technology that depend on high speed
broadband

• Eg. entertainment, educational resources,
Healthcare, communications and other
services delivered by broadband

16

Energy generation and transmission

• Generation mostly from renewable sources
• 70% of energy from Hydro
• Transmission is major constraint on network
• Generation mostly in South Island
• Demand in North
• $5billion ongoing investment in transmission
infrastructure.
• Christchurch looking at distributed generation and
energy systems for central city
• UK companies well positioned

17

Oil & Gas

• New Zealand’s 3rd largest export is oil
• Self sufficient in gas
• Marston Point refinery produces over 55% of New Zealand transport fuels
• Investment of $400million to upgrade facilities leading to additional 3million
barrels of crude capability per year
• New Zealand Economic Exclusion Zone offers huge Oil & Gas potential .
• Petrobras and others exploring Eastern Coast and Southern Ocean
• Discovery will see boom in onshore and offshore infrastructure

18

Water Infrastructure

• Auckland population increase putting pressure on system
• Significant damage to water and waste water infrastructure in Christchurch
• Watercare investing $5billion over next 10 years
– 40% for investment in future growth requirements
– 32% used for renewing and upgrading existing assets
• Auckland Projects
– $800 million Central Interceptor tunnel project
– $350 million Hunua 4 water main pipeline
– $265 million North Harbour main duplication project
– $100 million for rural water treatment

19

Social Infrastructure

• Government plan to spend $8bn on social infrastructure
– Middlemore Hospital development
– Wiri Prison
– Convention Centres in Auckland and Christchuch
– Christchurch health service recovery
• Construction of New homes to meet demands in Auckland and Christchurch
– Current build around 3000 new homes
– Restrictions on land use to see increase in high density in Auckland
– Christchurch over 100000 homes damaged or destroyed
– Liquefaction risk reducing suitable building space in Christchurch
• Opportunities for Modular design, sustainable and energy efficient homes
20

Financing the plans

Credit to Kick Images, Photodisc, Getty Images

Credit to Kick Images, Photodisc, Getty Images

21

Finance

• Government have committed significant funding for infrastructure
• Ambitious projects throughout the country
• Funding gaps to achieve vision
• Traditional funding methods will not be sufficient
• New Zealand needs to rethink its approach in order to achieve growth
• Infrastructure investment as an enabler for growth
• Market New Zealand as an attractive place for investors in infrastructure
• Explore different models of investment, ownership and finance.

22

Areas of opportunity

• Infrastructure Projects and all elements of construction supply chain
• UK expertise is noted for its expertise in infrastructure and construction
projects
– Town Planning
– Road and rail infrastructure
– Urban planning and design
– Structural/ civil engineering
– Modular housing/ sustainable housing
– Heritage conservation and restoration

23

Market Access

• Easy country to do business
• Early Adopters, sophisticated consumers
• Familiar with dealing with overseas companies
• NZ$ currently strong making UK exports more attractive
• Look for tender opportunities through government websites such as GETS
www.gets.govt.nz

• Establish links and partners early
• Talk to UKTI in New Zealand who can advise on your specific needs

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Contact Details

Paul Tuckley
Trade Development Manager
UK Trade & Investment
New Zealand
Email: paul.tuckley@fco.gov.uk

Phone: +64 9 3035017
Mobile: +64 21 337778

Meet me in person at Explore Export www.exploreexport.ukti.gov.uk

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UKTI NZ - Infrastructure Opportunities in New Zealand

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