Government may consider using PPPs to build defence forces infrastructure

An Air Force C-130 Hercules at Ōhakea Air Force Base.
Photo: Supplied / New Zealand Defence Force

The government may consider hiring private companies to build infrastructure at Ōhakea Air Base, but says security remains a top priority.

Last week, RNZ revealed the Defence Force had not proposed a $200 million modernisation programme for the base in this year’s budget.

The programme includes a new accommodation block and an explosives storage facility.

The rationale was that prioritization was needed for other defense projects announced as part of a $571 million program in the 2024 budget.

Associate Defence Minister Chris Penk told RNZ public-private partnerships were an option to fund new and regenerate existing defence infrastructure.

He said preferred options would be considered on a case-by-case basis as business cases were considered by the government, including for work at Ōhakea and Linton military camps near Palmerston North.

Penk could not confirm whether the $200 million Ōhakea infrastructure program was specifically being considered for financing through a P3.

He told RNZ he expected to announce further details on the defence and infrastructure PPPs in the coming months.

He said safety was a top priority when considering any decision in this area.

“Any decision to seek private sector financing would be based on absolute certainty that rigorous security requirements would be met.”

In June, Infrastructure Minister Chris Bishop signalled the government’s intention to fund more major projects through private sector finance, such as P3s.

“The problem is that we cannot buy our way out of our infrastructure deficit. It has built up over the years,” he said.