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Social Infrastructure

What is Social Infrastructure?

Infrastructure can broadly be defined as long-term physical assets that operate in markets with high barriers to entry and enable the provision of goods and services. Social Infrastructure is a subset of the infrastructure sector and typically includes assets that accommodate social services.

What are Public-Private Partnerships?

A PPP is a long-term contract between the public sector (a Public Sector Client) and a private company or consortium of companies (a Private Entity) covering the design, construction, maintenance, and financing of an infrastructure asset.

The benefits of using PPPs to procure Social Infrastructure

Traditionally, New Zealand Social Infrastructure projects have been funded, operated and maintained by the public sector. However, there is international evidence to suggest that procurement through a PPP can deliver several benefits to the public sector.

Global PPPs

The PPP model has been used in the United Kingdom since the early 1990's, through the use of Private Finance Initiatives for the procurement of public infrastructure. Since 1992, over 630 PFI projects delivering infrastructure investment of over £63 billion have been signed in the United Kingdom.

Market Potential for PPPs in New Zealand

While PPPs are well established internationally, to date traditional procurement models have been favoured in New Zealand. There have, however, been a number of examples of partnerships between the public and private sectors to finance the delivery of infrastructure projects in New Zealand.

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