We’d like to advise our members about the Governments interest to identify ‘shovel ready’ infrastructure projects from the public and certain private infrastructure sector participants impacted by COVID 19.
This comes after Ministers have advised that they wish to understand the availability, benefits, geographical spread and scale of ‘shovel ready’ projects in New Zealand.
The purpose of this call out, is so that these types of projects are considered in the context of any potential Government response to support the construction industry. It would also provide certainty on a pipeline of projects to be commenced or re-commenced, once the COVID 19 Response Level is suitable for construction to proceed.
What is required from our industry?
At the request of Ministers, the Infrastructure Industry Reference Group chaired by Mark Binns is leading this works. This is also support by Crown Infrastructure Partners Limited (CIP).
CIP is now seeking information from relevant industry participants to identify appropriate projects and/or programs that may be suitable for potential Government support. To assist, they’ve prepared Project Information Guidelines which outline the approach they’ll be taking to review and categorise the project information it receives.
The four key criteria are:
- The extent to which the project is construction ready now or within a realistic 6 – 12 months (construction readiness);
- The project is of an infrastructure nature (either horizontal or vertical), and has a public or regional benefit;
- Whether the project is of a size and has material employment benefits (i.e. $10m+); and
- The overall benefits and risks of the project.
Interested parties will need to submit a form for each project they consider meets these criteria
This information is being sought in good faith – but no undertaking can be made that:
- The criteria or any other considerations will not change,
- That any projects coming forward from the Reference Group will be accelerated, or
- That any of the Reference Group’s recommendations will be adopted.
How does this help the NZ metals industry?
At HERA we believe this provides another piece to the pie of information for our members. And, should give confidence that the Government is certainly exploring ways in the context of stimulation packages through infrastructure projects.
We’d encourage our members who are engaged in construction of infrastructure projects to consider submitting projects for consideration.