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New Zealand Infrastructure Investment

New Zealand’s infrastructure challenges present opportunities for U.S. companies offering innovative products and services tailored to new infrastructure projects. Solutions that enhance quality, resilience, and productivity are especially welcomed.

New Zealand’s infrastructure network is facing significant challenges due to population growth, aging systems, insufficient resilience to natural hazards (e.g., flooding, earthquakes), technological advancements and evolving demands. Expanding, upgrading, and replacing key infrastructure is essential to meet future needs and ensure resilience against natural hazards.

Several sectors are forecast to require increased investment:

  • Electricity and Gas: The largest investment demand is expected in this sector, with 90% of funding directed toward new generation projects and the remainder allocated to transmission and distribution networks. Most of this investment will occur over the next 10 to 15 years and is expected to come from both the New Zealand government and private sector sources.

  • Hospitals: Rising demand is driven by an aging population, with renewal of existing facilities accounting for a significant portion of investment, such as the recently announced Dunedin Hospital and Nelson Hospital redevelopments. The New Zealand government will fund this work.

  • Government-Subsidized Housing: Expansion and upgrades are needed to address demographic changes and housing shortages.

  • Telecommunications: Enhancements in mobile broadband and other technologies are critical to support economic growth and connectivity.

Conversely, sectors such as land transport, water and waste, and education are expected to see slightly lower investment demand compared to current levels.

New Zealand’s annual spending on infrastructure is expected to grow from $14.5 billion in 2022 to $21 billion by 2055, reflecting increased investment in roads, public transport, utilities, and other essential services. Notably, 60% of this investment will go toward replacing aging or outdated infrastructure, rather than building new projects. Improving construction productivity and achieving greater returns on investment are key priorities.

For more information, contact our office in New Zealand at office.newzealand@trade.gov.