Use of BOOT methodologies in infrastructure works in New Zealand

Abstract

In many overseas countries, particularly UK, Asia, USA and Australia, infrastructure works are more commonly being funded by private investors. The mechanisms for achieving this involve private developers constructing the facility and then operating it for a pre-determined number of years during which time they can retain the operating revenues and at the end of the period hand the operating facility back to the responsible local government body.

New Zealand, however, has been very slow to adopt this methodology. Survey research, which forms the core of this paper, indicates that the country is largely ignorant of the principles and application of private funding and at best sees it as a means of effecting privatisation of public facilities.