© The Treasury
The Role of Public Private
Partnerships in New Zealand
Infrastructure
Dan Marshall
Senior Advisor, PPP Prog...
© The Treasury
Outline
 First Principles: The role of PPP in New
Zealand infrastructure
 Reflections on the first three ...
© The Treasury
First Principles
PPP is about: better outcomes
 Enhanced levels and quality of service for an
equivalent c...
© The Treasury
First Principles
PPP is about: paying for performance
 Absolute alignment of focus on outcomes
 Unitary C...
© The Treasury
First Principles
PPP is about: a catalyst for change
 Improving how we think about service delivery
 Driv...
© The Treasury
First Principles
PPP is about: asset design and whole of
life asset management
 Outcome driven asset desig...
© The Treasury
First Principles
PPP is about: innovation in services
delivered from assets
 Outcome driven service delive...
© The Treasury
First Principles
PPP is about: real risk transfer
 Identification and recognition of project risk
 Alloca...
© The Treasury
First Principles
PPP is not about:
 off balance sheet funding
 lowest cost procurement
 solving procurem...
© The Treasury
Reflecting: PPP - The Early Years
5
10
projects to market
2 projects banked
3 versions of the standard form...
© The Treasury
Reflecting: PPP - The Early Years
5
11
projects to market
2 projects banked
3 versions of the standard form...
© The Treasury
Reflecting: A Client Agency Perspective
“ A flagship project for the Department, and very important
for our...
© The Treasury
Reflecting: A Client Agency Perspective
“ At Hobsonville Point, we will be creating a school that
allows fo...
© The Treasury
Reflecting: A Client Agency Perspective
14
“ PPP opens the door for private sector innovations that are
not...
© The Treasury
Reflecting: A Client Agency Perspective
15
“ It soon became clear to me that the project had been
designed ...
© The Treasury
Reflecting: Lessons learned
 We can close deals with outcome based
performance regimes
 It is the outcome...
© The Treasury
Reflecting: Lessons learned
 Whole of life analysis adds value
 Process clarity and understanding is
cruc...
© The Treasury
Currently: we’re thinking about
 Depth of the construction market
 Ensuring lessons learned are captured ...
© The Treasury
Currently: we’re thinking about
 How we ensure network wide application of
innovation
 How we optimise en...
© The Treasury
Currently: we’re thinking about
 The application of PPP principles more
broadly
 The scope for private se...
© The Treasury
The future: PPP in New Zealand
 Proving PPP – entering the operating phase
 The maturing of the New Zeala...
© The Treasury
The future: PPP in New Zealand
 In procurement:
– NZ Transport Agency (Transmission Gully)
– Ministry of E...
© The Treasury23
“ When you consider the New Zealand PPP model,
fundamentally it has service outcomes and whole
if life co...
Upcoming SlideShare
Loading in …5
×

Dan Marshall, Senior Advisor - Public Private Partnerships Programme, The New Zealand Treasury - The role of PPPs in NZ Infrastructure

708 views

Published on

Dan Marshall delivered the presentation at the 2014 NEW ZEALAND INFRASTRUCTURE SUMMIT.

The New Zealand Infrastructure Summit brings you the most up to date infrastructure news combining case studies and key presentations, addressing developments in the some of the main infrastructure hubs, such as Auckland and Christchurch.

For more information about the event, please visit: http://www.informa.com.au/nzinfra14

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
708
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
21
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Dan Marshall, Senior Advisor - Public Private Partnerships Programme, The New Zealand Treasury - The role of PPPs in NZ Infrastructure

  1. 1. © The Treasury The Role of Public Private Partnerships in New Zealand Infrastructure Dan Marshall Senior Advisor, PPP Programme 2 April 2014
  2. 2. © The Treasury Outline  First Principles: The role of PPP in New Zealand infrastructure  Reflections on the first three years – what we have learned  Looking forward 2
  3. 3. © The Treasury First Principles PPP is about: better outcomes  Enhanced levels and quality of service for an equivalent cost to that of the public sector  Performance regimes that require levels of performance higher than the public sector 3
  4. 4. © The Treasury First Principles PPP is about: paying for performance  Absolute alignment of focus on outcomes  Unitary Charge 100% at risk 4
  5. 5. © The Treasury First Principles PPP is about: a catalyst for change  Improving how we think about service delivery  Driving continuous improvement  Promoting wider network implementation 5
  6. 6. © The Treasury First Principles PPP is about: asset design and whole of life asset management  Outcome driven asset design  Historic procurement – a race to the bottom  Long-term perspective – recognising the future cost of today’s decisions 6
  7. 7. © The Treasury First Principles PPP is about: innovation in services delivered from assets  Outcome driven service delivery and asset design  International best practice  Focus on operations and service models 7
  8. 8. © The Treasury First Principles PPP is about: real risk transfer  Identification and recognition of project risk  Allocation of risk to appropriate party  Development of risk management processes 8
  9. 9. © The Treasury First Principles PPP is not about:  off balance sheet funding  lowest cost procurement  solving procurement process problems 9
  10. 10. © The Treasury Reflecting: PPP - The Early Years 5 10 projects to market 2 projects banked 3 versions of the standard form Project Agreement released $1.8b worth of infrastructure under PPP procurement in New Zealand~ 2 public binding rulings obtained
  11. 11. © The Treasury Reflecting: PPP - The Early Years 5 11 projects to market 2 projects banked 3 versions of the standard form Project Agreement released $1.8b worth of infrastructure under PPP procurement in New Zealand~ 2 public binding rulings obtained $220b investment in infrastructure in New Zealand
  12. 12. © The Treasury Reflecting: A Client Agency Perspective “ A flagship project for the Department, and very important for our goals of reducing reoffending, lifting overall performance across the Department and ensuring better public value ” Ray Smith Chief Executive – Department of Corrections 12 “ [PPP] will allow the NZ Transport Agency to establish a performance-based contract based on very specific service, quality and value-for-money outcomes.” Geoff Dangerfield Chief Executive – NZ Transport Agency
  13. 13. © The Treasury Reflecting: A Client Agency Perspective “ At Hobsonville Point, we will be creating a school that allows for students to become the best they can be in all areas of development through strong relationships, shared learning design and high expectations of our whole community.” Daniel Birch Foundation Principal – Hobsonville Point Primary 13
  14. 14. © The Treasury Reflecting: A Client Agency Perspective 14 “ PPP opens the door for private sector innovations that are not always achievable under traditional public sector procurement methods, and today’s decision gives us the certainty we need to move ahead and deliver the important economic and safety benefits of this project.” Geoff Dangerfield Chief Executive – NZ Transport Agency
  15. 15. © The Treasury Reflecting: A Client Agency Perspective 15 “ It soon became clear to me that the project had been designed to encourage collaboration, and provide the private sector with the freedom and incentives needed to deliver different and innovative solutions ” Ray Smith Chief Executive – Department of Corrections
  16. 16. © The Treasury Reflecting: Lessons learned  We can close deals with outcome based performance regimes  It is the outcomes that count  A pipeline can be useful - and a problem 16
  17. 17. © The Treasury Reflecting: Lessons learned  Whole of life analysis adds value  Process clarity and understanding is crucial  How we engage is critical 17
  18. 18. © The Treasury Currently: we’re thinking about  Depth of the construction market  Ensuring lessons learned are captured and applied  Management of projects post financial close  The finance market 18
  19. 19. © The Treasury Currently: we’re thinking about  How we ensure network wide application of innovation  How we optimise engagement with the market  How we reduce uncertainty and complexity for the private sector 19
  20. 20. © The Treasury Currently: we’re thinking about  The application of PPP principles more broadly  The scope for private sector involvement in non-PPP infrastructure projects  Ensuring the New Zealand PPP model is well understood 20
  21. 21. © The Treasury The future: PPP in New Zealand  Proving PPP – entering the operating phase  The maturing of the New Zealand model and market  A clear and present pipeline  The promised guidance material 21
  22. 22. © The Treasury The future: PPP in New Zealand  In procurement: – NZ Transport Agency (Transmission Gully) – Ministry of Education (4 new schools) – Department of Corrections (Auckland Prison)  Business case: – NZ Transport Agency  Of interest: – Ministry of Health – Canterbury Earthquake Recovery Authority 22
  23. 23. © The Treasury23 “ When you consider the New Zealand PPP model, fundamentally it has service outcomes and whole if life considerations at its core – it is not merely about tricky financing or clever contracting”

×