National Infrastructure Bank

 

A key part of National’s plan to deal with the current economic and jobs crisis is to deliver world-class infrastructure that grows our economy, and to gets Kiwis back to work.

To do that we have to invest, and every dollar borrowed must be spent wisely on projects that improve our economy and build productivity.

National will create a new Crown Financial Institution, named the National Infrastructure Bank to provide finance and advice to central and local Government infrastructure projects. It will take an inter-generational, long term approach to finance of infrastructure in New Zealand.

You can read our National Infrastructure Bank Policy Factsheet here.

The Bank will employ professionals with valuable technical, legal, financial and economic appraisal skills. This will lift the quality of engagement in the infrastructure sector.

The Bank will have a role in ensuring that the Crown receives value for money from its infrastructure finance structures. It will provide an avenue for institutional investors such as the ACC, NZSuper Fund, iwi, Kiwisaver providers and Australian pension funds to take on investment risk in New Zealand infrastructure assets.

The Bank will consolidate several existing entities to provide a single, professional agency including the:

  • Crown Infrastructure Partners

  • Green Investment Finance

  • Residual holdings at Crown Irrigation Investments Limited

  • Loans made by the Provincial Growth Fund

  • Other loan portfolios across the Crown balance sheet where appropriate

Final design of the Bank would be completed by a new National Government drawing upon the appropriate advice of The Treasury and private sector expertise.

Projects the National Infrastructure Bank could support:

  • Development of new three waters infrastructure, including funding local Government finance.

  • Financing new toll roads through long term bond finance in collaboration with NZTA.

  • Supporting funding for green investment projects.

  • Financing water storage projects.

  • Supporting co-funding models for social infrastructure such as schools.

  • Helping local Government unlock housing and commercial development with loans tied to targeted rates and development contributions.

A National Government will invest in New Zealand’s largest ever infrastructure programme, including $31 billion to upgrade our transport networks and de-clog our cities, $4.8 billion to fix our schools, and further investment to upgrade healthcare infrastructure.

You can read our National Infrastructure Bank Policy Factsheet here.