What is a public private partnership?
A public private partnership, also known as a PPP, is a long term arrangement between the public sector and private sector institutions for the delivery of a service, where provision of the service requires the construction of a new asset, or enhancement of an existing asset that is financed from external sources on a non-recourse basis, and ownership of the asset is retained by the Crown.
On 24 October, Treasury released two new guidance documents around the PPP model and policy, and procurement process. You can view these here: Public Private Partnerships | The Treasury New Zealand
The New Zealand PPP model:
focuses on service outcomes through integrated asset and service design;
incentivises whole of life design and asset management;
seeks to efficiently allocate risk to the party best able to manage that risk; and
applies a payment for performance regime incentivising delivery of specified service outcomes and to penalise non-performance.
Refer to the New Zealand PPP framework here:
How we can help
We provide advice and support to government agencies to plan, procure and deliver major infrastructure projects involving private finance (including public private partnerships).
We aim to supplement, rather than replace, existing capability. We partner with agencies to build up capability in, and increase access to, private financing and alternative procurement models such as public private partnerships.
We can provide specialist capability and expertise to support agencies across the investment lifecycle including:
Strategy and Planning: We provide support and engagement on the strategic options and supporting analysis, support the agency to ensure the commercial and financial proposition is robust, advise on market engagement, and assist with business case preparation, contributing directly to the commercial, financing and procurement elements.
Procurement: We provide advice on procurement models and funding and financing options and structures, support the preparation of procurement documentation (including expressions of interest and requests for proposals), support and participate in key advisor selection, provide financial and commercial support and advice including on risk approach and allocation, participate in the procurement process including interactives, evaluation, negotiations and contract execution, and support agencies in obtaining necessary government approvals.
Delivery and operation: We support agencies on the delivery and operation of a project, and provide advice and support on claims mediation, refinancing and proposed amendments.
Governance: We provide advice and support on governance, and provide oversight governance through participation in the relevant project steering and working groups.
We tailor our support according to the projects size, complexity, risk level and procurement capability. Our team will work closely with you to provide appropriate commercial, corporate finance, procurement and governance expertise.
If you would like to talk to us about a project, Please contact us at [email protected]