The Government has released the Major Projects Performance Report for the period November 2016 to March 2017, covering 55 complex major projects across government with a whole of life cost of $38.5 billion.
“The Investment System is continuing to mature with an increasing focus on realising the benefits of investment, and addressing risks before they turn into issues,” says Finance Minister Steven Joyce. “The portfolio as a whole continues to perform as expected.”
“Through this regular assessment, the Treasury aims to improve visibility of challenges and potential risks on projects where significant public funds are being invested,” says Mr Joyce. “It is my clear expectation that the public sector continue to focus on lifting productivity as a result of these investments so we can do more to help New Zealanders.”
The portfolio continues to perform well with 91 per cent of projects rated Amber or better, over half of the major projects are rated Green or Amber/Green, only nine per cent is rated Red or Amber/Red over this period.
The Red or Amber/Red rated projects are:
· Māori Land Service Programme – Te Puni Kokiri (Red)
· ANZAC Frigate Systems Upgrade – Defence (Red)
· 2018 Census Programme – Stats NZ (Amber/Red)
· Lincoln University/AgResearch Joint Facility – Tertiary Education Commission (Amber/Red).
Major projects are a collection of the most challenging projects Government agencies are currently undertaking. A red or amber/red rating is not uncommon during the life cycle of these large scale projects and highlights that there are issues or risks that are either being addressed or need to be addressed to ensure the project is delivered successful. Project governance teams are working with central government agencies to resolve those issues.
The interim report can be found at http://www.treasury.govt.nz/statesector/investmentmanagement/publications/majorprojects