Shovel-ready projects

Helping build New Zealand

15 June 2020 - Today the New Zealand Government announced the first wave of successful applicants under its ‘shovel-ready’ initiative. This initiative aims to provide funding to projects that can get started quickly, create jobs and have a public or regional benefit. 

The successful applicants cover a range of industries across New Zealand including housing, transport (roading, rail, pathways and cycleways) and water, and are expected to stimulate the construction industry, its workforce and the broader economy.  

PwC is uniquely placed to help these projects deploy shovel-ready funds with tailored and expert advice on project establishment, governance, procurement, and funding and financing arrangements. An overview of how we can work together is outlined below. Please get in touch with one of our experts to find out more.

How PwC can help

Targeted Crown funding for selected shovel-ready projects offers a unique opportunity. PwC can work alongside you to ensure optimal structures and processes are put in place that allow funding to be deployed rapidly to facilitate successful project outcomes.

  • Large and agile team: Your PwC team has extensive experience and expertise working with clients on the development and delivery of capital projects and liaising closely with central government.
  • Outcome driven focus: PwC can help you deploy your shovel-ready project funds quickly to help create jobs and provide public and / or regional benefits whilst driving towards your key project outcomes.
  • Best practice approach: Robust governance, procurement and financing practices are essential to support outcomes and ensure your project progresses in line with schedule and budget.  We have the know how and resources to not only assist with development of these systems but also ensure they are implemented effectively. 
  • One trusted adviser: PwC has a broad range of specialist knowledge to assist across all aspects of your project throughout its lifecycle.

Well considered governance structures together with tailored communication, operational and reporting processes will help to ensure projects are delivered on time and to budget with early identification of delivery issues.

How we can help

  • Development of commercial principles, operational plans and guides, and decision making and approval frameworks.
  • Evaluation of alternative management, organisational and governance structures (including expertise in multi party structures).
  • Advice on management, and facilitation, of stakeholder and Government relationships.
  • In depth understanding of entity structures and legal frameworks, including shareholder and SPV agreements. 
  • Development of effective performance reporting templates and metrics, including monitoring

A comprehensive and well run procurement process is essential to ensure projects achieve value for money and have financially viable and capable contractors, consultants and suppliers.

How we can help

  • Development of procurement strategies, including assessment of contracting, packaging and asset ownership models, and optimal procurement timing, including incorporation of social procurement opportunities.
  • Development of material for, and management of, market sounding processes.
  • Determination of commercial and risk allocation principles and development of tender documentation including RfP, procurement plan and evaluation approaches.
  • Contractor and supplier assessments to ensure the viability of contracted parties (including financial sustainability as well as operational and commercial capability). 
  • Tender management, including evaluation of bids, supporting negotiations, probity and document execution.

The shovel-ready funding package will require close interaction with the Crown and other project stakeholders. Evaluation of complementary funding and financing options could lead to enhanced project outcomes.

How we can help

  • Identification of funding and financing sources, including innovative solutions that build on the shovel-ready funding package.
  • Financial model development to support evaluation of funding / financing options, creation of programme budgets and understanding of potential funding splits.
  • Evaluation of financing options, including price benchmarking, shadow credit rating analysis and potential market sounding with financiers.
  • Tailored solutions to align with governance, commercial and technical approaches.
  • Determine the best structure from a tax perspective to provide flexibility and optimise the investment. Advice on accounting treatment and implications of different contractual structures.

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Contact us

Carl Blanchard

Carl Blanchard

Partner, PwC New Zealand

Tel: +64 21 744 722

Robert Cameron

Robert Cameron

Partner, PwC New Zealand

Tel: +64 21 471 057

Dan Marshall

Dan Marshall

Partner, PwC New Zealand

Tel: +64 27 322 7781

Russell Windsor

Russell Windsor

Partner, PwC New Zealand

Tel: +64 21 498 060

James Rees-Thomas

James Rees-Thomas

Partner, PwC New Zealand

Tel: +64 21 462 410

Natalie McClew

Natalie McClew

Partner, PwC New Zealand

Tel: +64 21 280 4631

Peter Boyce

Peter Boyce

Partner, PwC New Zealand

Tel: +64 21 823 342

Lara Bennett

Lara Bennett

Executive Director, PwC New Zealand

Tel: +64 21 521 974

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