Infrastructure for a major suburban development on Auckland's Hibiscus Coast will be the first to gain funding from a special purpose vehicle using long-term debt raised by the government's Crown Infrastructure Partners and designed to lower the up-front cost of new housing for home buyers.
Some $48.9 million of the $91m of roading and wastewater infrastructure for Fulton Hogan's Milldale subdivision at Wainui, between Orewa and Silverdale, will be funded with long-term debt raised by CIP from the Accident Compensation Corp.
CIP began life as Crown Fibre Holdings, responsible for administering the previous government's ultra-fast broadband roll-out.
Its skills have been retained to assist with the current administration's desire to accelerate other types of infrastructure using novel funding structures that can be held off-balance sheet by both the Crown and local governments.
Auckland Council is contributing $33.5m to the SPV being formed for the project, while central government is contributing $4m. Fulton Hogan is providing the remaining $4.6m.