Greater transparency for Govt investment projects
Release: Bill English
Finance Minister Bill English says the release of two reports today on its investment practices and the performance of its major investment projects provide an overview to the public for the first time.
The annual report Managing Government Investment Projects 2014-15 - the first of its kind - provides a snapshot of the Government’s overall investment programme and the recently implemented changes to the way it is managed.
It covers $6.4 billion of Government spending on 409 projects - such as ICT, new schools, Defence projects and construction - with a net worth of $74 billion.
Also being released is the Major Projects Performance Report March-June, which provides a comprehensive update on 38 of the most complex of those 409 investment projects, and advises on the extent to which they are delivering on expectations.
“These public reports offer greater transparency and increased accountability on how well tax-payer funded projects are progressing.
“We want to reduce the risk of failure and increase the likelihood of success.
“These reports make clear the Government’s approach to project monitoring, which helps to detect early warning signs on projects to help make changes to either get the project back on track, revise intentions or discontinue further investment,” he says.
The Major Projects Performance Report assesses investments spanning 19 agencies using a five-point scale from Red through to Amber and then Green.
The report identifies 32 projects that range between Amber and Green, accounting for $13.2 billion of the $20.5 billion Major Projects portfolio.
There are six projects identified as Red or Amber/Red, accounting for $7.3 billion of investment.
“Thirty two projects are rated Amber or Amber/Green which is to be expected – the report covers the most complex and expensive investments across Government and an Amber rating indicates that successful delivery of the project is feasible, but issues exist that require management attention.
“Given the nature of the projects, a Green rating is only given when delivery is nearing completion. Moving in and out of Amber/Red and Red is typical in the lifecycle of major projects, and these are usually managed to successful delivery”.
“With this information the Government can be responsive. The Christchurch Central Delivery Programme for example has been assessed as Red but a new monitoring regime and new legislation will ensure momentum is maintained to deliver the best possible outcomes,” Mr English says.
The two reports can be viewed here:
Managing Government Investment Projects 2014-15
Major Projects Performance Report March-June