Crown Infrastructure Partners




PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
Crown Infrastructure Partners
Crown Infrastructure Partnerships - Drury South
Crown Infrastructure Partnerships - Wainui
Crown Infrastructure Partnerships - Paerata, Pukekohe and Drury West
STATUS

Prospective pipeline

Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.

Credibly proposed

The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.   

Announced

The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.

Under procurement

The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).

Preferred bidder announced

A preferred bidder has been selected and is in exclusive negotiations.

Recently closed

Projects that have progressed to contractual close remain on ANZIP for 12 months.

ANZIP is focused only on major infrastructure activity, above the following thresholds:

Australia

Construction projects: > AUD$300m

Investable greenfield & brownfield: > AUD$100m

New Zealand

All greenfield and brownfield projects and divestments: > NZD $100 million


STATUS: Announced
VALUE: $599M AUD | $600M NZD
SECTOR: Other
JURISDICTION: New Zealand
PROCUREMENT APPROACH: Other
TYPE: Greenfield

In July 2017 The New Zealand Government announced NZ$600 million (A$599 million) will be provided for a joint public-private infrastructure investment fund Crown Infrastructure Partners, for road and water infrastructure.

Crown Infrastructure Partners (repurposed from Crown Fibre Holdings) will manage the fund, and follow the same investment vehicle model used to deliver Ultra-Fast Broadband services in New Zealand.

The objective of Crown Infrastructure Partnerships is to increase the supply of land available for housing development through infrastructure investment, particularly in high-growth areas in the north and south of Auckland.

Should projects proceed to completion, it is expected that combined they will open up sufficient land for the construction of 23,300 additional houses, taking total housing capacity 28,300.

The fund has been set up as local councils have high levels of debt, constraining their ability to fund necessary infrastructure for greenfield housing development.

By accessing private capital, councils sidestep this financial constraint and provide the necessary infrastructure.

The Government is prepared to take up some of the early uptake risk. This approach aims to de-risk the early stages of investment for the private sector so that projects can be completed more rapidly.

Crown Infrastructure Partners and its co-investors will establish Special Purpose Vehicles (SPVs) with revenue streams coming from councils through targeted rates, from new residents through user charges, or from developers in the form of one-off payments. The NZ Government notes that councils partnering with Crown Infrastructure Partners will have the option to buy back infrastructure at a later date, although this will not be a requirement.

This model of investment has been successfully used in the roll-out of the NZ$1.5 billion (A$1.4 billion) Ultra-Fast Broadband network. Crown Fibre Holdings is working in partnership with the private sector with four newly created Local Fibre Companies to deliver the rollout. The first phase of the project is now 75 per cent complete, with 1.1 million businesses in 22 cities and towns across New Zealand currently able to access to the service.

Crown Infrastructure Partners will develop specific SPV criteria during 2017, which is expected to include a requirement for projects to generate sufficient revenue to cover their own costs (including capital costs), provide for an exit pathway for the Government to recoup investment and a mechanism through which external providers can invest in infrastructure.

The Auckland North (Wainui) and South (Drury) housing developments, previously submitted to the Government by Auckland Council, will be among the first projects to be assessed by Crown Infrastructure Partners.

Crown Infrastructure Partners will consider other proposals after SPV guidelines have been developed.


Crown Infrastructure Partnerships - Drury South


PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
 Crown Infrastructure Partnerships - Drury South

STATUS: Credibly proposed
VALUE: $63M AUD | $68 NZD
SECTOR: Other
JURISDICTION: New Zealand
PROCUREMENT APPROACH: Confirmed PPP
TYPE: Greenfield

In July 2017 the New Zealand Government announced NZ$600 million (A$599 million) will be provided for a joint public-private infrastructure investment fund, Crown Infrastructure Partners, for new road and water infrastructure.

Drury South is one of the four areas situated to the South of Auckland that has been identified as having the greatest opportunity to create new urban areas through new infrastructure investment.

Out of the four areas it is the most developed and is in near ready-to-go status, having already obtained planning permission, with the design and consenting expected to be complete in 2017. Should major civil works commence in October 2017 it is expected the project will be ready for the first occupants in 2019.

The Drury South project being developed by Stevensons Group is an integrated development that will provide for more than 700 houses as well as an 180Ha business and industrial development adjacent to the Stevenson Drury Quarry.

To facilitate and accelerate development within the southern sector of the city, Auckland Council and NZTA are investigating the southern section of the Mill Road Corridor, a Primary Arterial Road/Expressway that will link Mill Road in Manukau with Pukekohe.

The Drury South project proposes that a Mill Road Arterial be constructed that will intersect and connect to SH1 within the bounds of the Drury South Development Area and Great South Road in the West. This interconnection via the spine road will provide important network resilience to both the Mill Road Arterial and SH1.

The project also includes new wastewater and freshwater connections. This includes a 4.5km trunk sewer between the project and Hingaia pump station north of Drury, and a new connection to the Waikato water pipeline in Drury. This infrastructure will be designed to integrate with other developments in the area and could service in excess of 10,000 households.

Civil works to deliver the land ready for development will total $300 million, of which an estimated $68 million in road and waste infrastructure will be assessed for Crown Infrastructure Partners funding. 


Crown Infrastructure Partnerships - Paerata, Pukekohe and Drury West


PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
 Crown Infrastructure Partnerships - Paerata, Pukekohe and Drury West

STATUS: Prospective pipeline
VALUE: $296M AUD | $319 NZD
SECTOR: Other
JURISDICTION: New Zealand
PROCUREMENT APPROACH: Confirmed PPP
TYPE: Greenfield

In July 2017 the New Zealand Government announced NZ$600 million (A$560 million) will be provided for a joint public-private infrastructure investment fund, Crown Infrastructure Partners, for road and water infrastructure.

The objective of Crown Infrastructure Partners is to increase the supply of land available for housing development through infrastructure investment, particularly in high-growth areas in the North and South of Auckland.

The greatest opportunity to create new urban areas in Auckland is to the South of the city, where around 5,300 hectares of land has been identified for urban development.

The areas of Paerata, Pukekohe, Drury West and Drury South offer the greatest opportunity to expedite the supply of housing as they are the most ready to develop.

Of these, Drury South is the most progressed potenital housing development (see $68 million Drury South sub-project).

Although areas in the South have significant potential to expand greenfield housing capacity in Auckland, only 3,000 additional houses can be supported by the existing water and roading infrastructure.

It is estimated that an infrastructure investment of $387 million ($215 million for transport; $172 million for water) could increase the supply of new houses by 17,800 across Paerata, Pukekohe, Drury West and Drury South.

The estimated $172 million needed for water infrastructure in the South would fund a number of developments including (but limited to) the:

- New Paerata water main ($30 million)
- New Paerata sewer ($40 million)
- Drury West wastewater reticulation ($20 million)
- Drury South pump station ($25 million)
- Bremner Road sewers ($2 million)
- Bremner Road pump station ($20 million)
- Paerata storm water ($1 million)
- Pukekohe storm water ($26 million)

The estimated $215 million infrastructure investment in the South would fund a number of transport developments, including the:

- Rail stations at Paerata and Drury West ($60 million)
- Paerata rail crossing ($20 million)
- Bremner upgrade ($38 million)
- Mill Road, Great South Road/Spine Road ($97 million)


Crown Infrastructure Partnerships - Wainui


PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
 Crown Infrastructure Partnerships - Wainui

STATUS: Credibly proposed
VALUE: $187M AUD | $201M NZD
SECTOR: Other
JURISDICTION: New Zealand
PROCUREMENT APPROACH: Confirmed PPP
TYPE: Greenfield

In July 2017 the New Zealand Government announced NZ$600 million (A$599 million) will be provided for a joint public-private infrastructure investment fund, Crown Infrastructure Partners, for new road and water infrastructure.

New urban areas in the north of Auckland, including Silverdale, Wainui and Dairy Flat have been identified by Auckland Council as areas where greenfield housing development can be significantly expanded over the next 30 years, provided the necessary infrastructure is in place to support the expansion.

The North project focuses on Wainui, where the existing infrastructure can only support the construction of 2,000 new houses in the area zoned for residential use in the Auckland Unitary Plan. It is estimated that an infrastructure investment of $201 million ($149 million for transport; $52 million for water) could sufficiently increase infrastructure capacity to service up to another 5,500 houses in Wainui.

The estimated $52 million infrastructure investment in the North would fund a number of water developments including the:

- New Wainui service reservoir ($15 million)
- New water supply booster pump station ($10 million)
- New Wainui sewer and pump station ($25 million)
- Wainui Storm water ($2 million)

The estimated $149 million infrastructure investment in the North would fund a number of arterial transport developments, including the:

- Wainui Arterial Road ($60 million)
- Curley Ave Bridge ($89 million)

The project is currently being assessed by Crown Infrastructure Partners.


Crown Infrastructure Partners
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