Procurement Professional is the official publication of CIPS Australasia

New Zealand government procurement policy to change

12 Aug 2010

Source: TVNZ

 
Future infrastructure projects by government agencies worth more $25 million will be required to consider alternative procurement options - including public private partnerships (PPPs), New Zealand Finance Minister Bill English announced today.

It was part of a package of measures aimed at improving public sector decision making around infrastructure investment. The government holds $220 billion of assets which were forecast to grow by $30b over the next four years.

English also confirmed the government's plan to publish a regular government investment statement which would set out the Crown's assets and liabilities. The statement was signalled in the budget and would also identify issues and how government would manage investment in assets. The first statement would be released by the end of the year.

Government agencies would be required to consider and evaluate alternative procurement options when making decision on infrastructure investment with a whole-of-life cost over $25m.

"PPPs will be appropriate only for some projects, but we believe putting this to the test will increase price competition and ensure that taxpayers get the best possible value for money," English said.

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