UKTI NZ - Infrastructure Opportunities in New Zealand

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

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

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

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

UKTI New Zealand – Infrastructure Opportunities in New Zealand 06/11/2012 3

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. Social5UKTI New Zealand – Infrastructure Opportunities in New Zealand 06/11/2012

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 social infrastructure

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Source: Wordpress


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

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• 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

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• 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 city

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

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Credit to Ed Freeman, Photodisc, Getty Images


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

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Credit to Vetta, Getty Images


Infrastructure Projects


Credit to Chris Ryan, OJO Images, Getty Images

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 billion over next five years in transport projects


Credit to Malcolcm Fife, Photodisc, Getty Images

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

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


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


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


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


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


Financing the plans

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Credit to Kick Images, Photodisc, Getty Images


Credit to Kick Images, Photodisc, Getty Images

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.


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


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


Contact Details

Paul Tuckley

Trade Development Manager

UK Trade & Investment

New Zealand

Email: [email protected]

Phone: +64 9 3035017

Mobile: +64 21 337778

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


UKTI NZ - Infrastructure Opportunities in New Zealand

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