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Government planning $6.1 billion worth of construction projects

The Government has 174 infrastructure projects worth about $6.1 billion in the pipeline, half of which should be finished by 2021, a Treasury report reveals.

The bulk of them were for the Ministry of Education and Defence Force, with 52 projects each.

The Transport Agency has 44 projects, while the Department of Corrections has 12 and the Ministry of Health has 14.

The majority of the projects are in early stages - either a business case, or in the procurement process.

Only 10 per cent, or 18 projects, are approaching or under construction.

"While a level of certainty is signalled, final approvals may be needed by Cabinet, ministers, or at board and executive level, before a project actually comes to market," Treasury said.

"This will depend on project risk and value."

The pipeline was created by the National Infrastructure Unit within Treasury, and will be spun out into an independent infrastructure commission later this year if approved by the Parliamentary process.

It aims to increase certainty in the construction market, the report said.

"When fully developed, the pipeline will help give the infrastructure market greater certainty about future infrastructure projects, to help it gear-up capacity and capability to deliver.

"It will also inform the commission's thinking as it develops a 30-year strategy to address New Zealand's infrastructure needs."

More agencies projects, and eventually private sector projects, would be added to the pipeline over time, the report said.

Radison Reidy

rnz.co.nz

Construction workers in Christchurch (file picture).
Construction workers in Christchurch (file picture). Source: istock.com