Ngāti Toa iwi leader Helmut Modlik highlighted the intergenerational nature of iwi and infrastructure investment at ANZ’s 2024 Māori Investor Forum.
Renewable energy, particularly solar power, offers significant opportunities for iwi, alongside the Government’s Public-Private Partnerships.
Māori investors, including iwi, are increasingly turning their attention to infrastructure projects – and with good reason.
This shift is not just a long-term financial strategy but a move that aligns with Māori aspirations to foster improved social outcomes.
Helmut Modlik, chief executive of Te Rūnanga o Toa Rangatira, recently told ANZ’s 2024 Māori Investor Forum: “Iwi – by definition – is an intergenerational enterprise – as is infrastructure.”
Te Runanga o Toa Rangatira chief executive Helmut Modlik.
That’s why it’s clear to see why the two sit together well. The aim is not merely to build roads or water systems, it’s to build futures.
By investing in infrastructure, iwi are not only securing sustainable financial returns on their investment but also looking to foster the economic wellbeing and resilience of their people.
Infrastructure projects are by nature labour-intensive, from their design and construction to their operation and maintenance. This can offer meaningful training and employment opportunities.
The annual ANZ Māori Investor Forum – which gathers CEOs and directors of leading Māori investment entities – highlighted both the opportunities and challenges in this sector.
Nick Leggett of Infrastructure NZ pointed out that New Zealand currently ranks poorly in terms of the value derived from each dollar spent on infrastructure.
This inefficiency underscores the urgent need for a coherent investment plan that balances various sectors, including water services, roads, and rail.
Ramping up infrastructure investment has the potential to enhance our quality of life, while also helping increase our resilience to climate change and supporting our transition to cleaner energy.
In this way, renewable energy – particularly solar power – stands out as a significant opportunity for iwi.
Gary Holden, managing director of Lodestone Energy, provided the forum with insights from his decades in the energy sector.
The company has five solar farms across the Far North, Coromandel and Bay of Plenty and has plans to build 20 more in the next five years, supported by investors, including Māori.
These solar power projects are set to deliver both environmental benefits and good financial returns – and to upskill a new generation of workers.
Holden explained that to build each new solar farm, the company needed to train new staff, many of whom have stayed with the company and moved on to its next project.
The current coalition Government’s increased use of Public-Private Partnerships (PPPs) for infrastructure also opens the door for more iwi investment.
David Harrison.
Leggett said that while some of the PPP projects will be “mega” projects, others – especially in the education or health sector – will be smaller.
Rather than building an entire standalone hospital, he says there will increasingly be opportunities to build smaller facilities that might be grouped together in one place.
This innovative approach could revolutionise how we think about and implement infrastructure projects.
Another prime example of innovative infrastructure investment is Te Rūnanga o Toa Rangatira’s partnership with an Australian firm to trial a scalable wastewater project.
There is a significant demand for water asset replacement and operation, presenting a perfect opportunity for iwi to step in with funding and investment, Modlik noted.
The alignment between iwi values and infrastructure investment offers a promising path forward.
By focusing on long-term, sustainable projects, iwi can ensure that their investments benefit not only their communities but also the broader New Zealand society.
