Reason Foundation

Reason Foundation

New Zealand's Guidance for Public Private Partnerships

Shirley Ybarra
October 20, 2009, 11:17am

The National Infrastructure Unit of the Treasury of New Zealand has published a new report entitled “Guidance for Public Private Partnerships (PPPs) in New Zealand”.  This is a report that can provide significant insights to the PPP market not only in New Zealand for those working and thinking about the next steps for the PPP market in the United States.

The purpose of this guide is to outline for government agencies, potential bidders and the public the general direction and principles that will be adopted, the processes that are to be followed and the rationale for them. It also provides a framework for assessing whether a PPP is to be preferred over other forms of procurement in any given situation.

As noted in the report for New Zealand:

The guide looks at the well developed Australian guidance, but recognizes that New Zealand’s circumstances are different and therefore looks at what can be followed and what needs to be changed.   The report looks at when/why a PPP should be considered, risk assessment, project management structure, project delivery structure, the bidding process, project negotiation, financial impacts and project review upon final negotiation.

Most importantly, the report states, “Finally, readers should note that these guidelines should not be substituted for common sense, judgement and experience. Expert advice should therefore be sought wherever appropriate.”  

PPP’s are complex and there are no cookie cutters available to any country or any state in the USA.  This report is well worth a review.

Print This