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8. Conclusions

Based on the foregoing, the following conclusions are drawn in respect to the relevance of international experience in funding large scale water enhancement projects in NZ:

• Large scale water infrastructure projects are funded by Governments under traditional D&C models in some developed economies and in many transition and developing economies.

• There is increasing use of a range of Private Public Partnership (PPP) funding models used in developed economies to provide core Government services.

• No completed examples of large scale water enhancement projects implemented under PPP were found, although the Deakin Irrigation project proposals in Victoria have been based on this model.

• There is a strong interest amongst private sector players to be involved in PPP projects in irrigated agriculture, so long as the investment climate is supportive. This particularly so for interests in Australia and traditional PPP players from other jurisdictions in Europe.

• The use of PPP is now being suggested as a mechanism for providing public sector infrastructure, specifically within the transport sector. The level of understanding in NZ of PPP is generally low and local experience inadequate to give confidence that lessons learned elsewhere have been taken into account.

• The role of Government in supporting and facilitating PPP in other jurisdictions involves interventions in the legislative and control environment, and substantial support in the early stages of the PPP process. In some EU countries, Government has taken a financial position in asset provision in situations where direct revenue steams were insufficient to support the investment, and total benefits justified the intervention.

• If the NZ Government was interested in creating an environment supportive of private sector interest in PPP developments of large scale water infrastructure projects there are several initiatives required:

1. A more detailed analysis of private sector needs and constraints -- than has been possible under the resources available to this study.
2. Investment opportunities suitable for PPP need to be identified.
3. A commitment to pursue PPP implementation where appropriate.
4. Identification of a pilot PPP project with minimal difficulties to gain experience.

• In all of the countries where PPP has become an increasingly important method of developing infrastructure projects, there has been policy decisions based on extensive analysis, and subsequent specific support and procedures developed by Government. In some cases legislative change has been necessary. It is an unresolved question as to whether such initiatives are appropriate in the NZ context.

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