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Further to reply 27653 (2026), how does increasing the Crown's capital contribution to take advantage of its "lower cost of capital" reconcile with the reply's stated aim of "retaining sufficient transfer of risk from the Crown to the PPP consortia"?

Answered Question 30356 (2026)
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Asked by

Tangi Utikere

Member for Palmerston North · Labour Party

Question

  • Further to reply 27653 (2026), how does increasing the Crown's capital contribution to take advantage of its "lower cost of capital" reconcile with the reply's stated aim of "retaining sufficient transfer of risk from the Crown to the PPP consortia"?

Answered by

Hon Chris Bishop

Member for Hutt South · National Party · Minister of Transport

Answer

The Capital Crown Contribution reduces the quantity of private finance in the project by replacing it with crown funding. However, the risk transfer to the consortium remains material which underpins the benefits of the PPP model.