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Regional Infrastructure Fund

The Regional Infrastructure Fund has been established to promote sustainable regional economic development, and promote environmental protection and enhancement that supports sustainable regional economic development in the Bay of Plenty.

The Regional Infrastructure Fund was set up to support and promote economic development in the Bay of Plenty. The Fund is a commitment we made in the Council’s Ten Year Plan 2012-22.

The first funding round took place in 2013 and up to $40.5 million funding was allocated for:

  • An Innovation Centre at Scion’s Innovation Park in Rotorua.
  • A shared tertiary campus in Tauranga.
  • A Marine Precinct for Tauranga City.
  • The Ōpōtiki Harbour Transformation.

Read more about these projects below.

The Innovation Park is a shared space for growing businesses and small development teams within Scion’s Innovation Park.

The Centre seeks to attract high-tech businesses that are targeting new markets for forest and wood-derived products and services.

The Regional Infrastructure Fund has provided up to $2.5 million towards the Innovation Centre’s construction and fit-out.

Bay of Plenty Regional Council signed a Funding Agreement with Scion in April 2014 which sets out the conditions and obligations for the Regional Infrastructure Fund contribution.

www.scionresearch.com

Bay of Plenty Polytechnic, Te Whare Wananga o Awanuiarangi, and the University of Waikato make up the Bay of Plenty Tertiary Education Partnership.

The project involved construction of a new, purpose-built shared tertiary campus in the Tauranga CBD.

It provides more pathways through tertiary education, attracting more young people, particularly Māori, into tertiary education. Attracting young people to the Bay of Plenty is crucial to develop employment, education, and business opportunities.

The project partners estimate that over its two stages of construction, the tertiary shared campus provided:

  • over $49 million in direct construction expenditures;
  • $47 million in flow-on effects for suppliers and households;
  • an estimated 427 construction jobs, and
  • 272 tertiary operations jobs.

The Regional Infrastructure Fund provided up to $15 million towards the construction of stage one, a new purpose-built campus by 2020; and stage two, a second building on the campus by 2039.

Tauranga Energy Consumer Trust (TECT) is also contributing $15 million towards stage one, and Tauranga City Council (TCC) is gifting Durham Street land for stage one. Bay of Plenty Regional Council signed a Heads of Agreement in May 2015 with TECT, TCC and University of Waikato (on behalf of the Tertiary Education Partnership) which sets out the conditions and obligations for receiving the funding commitments.

This project involved construction of a purpose-built marine servicing facility and related infrastructure at Tauranga’s Sulphur Point. 

www.vesselworks.co.nz

The Ōpōtiki Harbour Transformation Project will create a new harbour infrastructure that enables all weather, all tide access in and out of the harbour. This will be crucial to developing the off-shore aquaculture industry in the eastern Bay.

The Ōpōtiki Harbour Transformation Project aligns with the objectives of the Bay of Plenty aquaculture strategy.

Estimates are that the mussel farm producing 16,000 tonnes of mussels a year would create 236 jobs, and increase GDP by $33.5 million in the sub-region.

The Regional Infrastructure Fund is providing up to $18 million towards the Ōpōtiki Harbour Transformation Project.

Bay of Plenty Regional Council and Ōpōtiki District Council signed a Heads of Agreement in January 2015, which sets out the conditions and obligations for the Regional Infrastructure Fund contributions. As part of its Long Term Plan 2015-25, Council allocated a further $2 million to the Ōpōtiki Harbour Transformation Project, bringing its total funding commitment to $20 million.

Ōpōtiki Harbour Development

Questions about the Regional Infrastructure Fund 

How will the fund affect rates in the region?

There is funding allocated in our current Long Term Plan for regional infrastructure projects and the council doesn't anticipate any additional impact on rates in coming years.

Once negotiations are progressed with the RIF applicants, future Long Term Plans (formerly Ten Year Plans) will address the timing of funding allocations for regional infrastructure. 

This Council is financially prudent and Council is confident RIF funding requirements can be successfully managed.

How does spending $40 million on infrastructure fit with the new purpose of the Local Government Act 2002?

Section 10 of the Local Government Act 2002 states that the purpose of local government is to:

  • Enable democratic local decision-making and action by, and on behalf of, communities.
  • Meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.

Council is seeking to fulfil this purpose through our contribution to high-quality local infrastructure.  We do this with our direct funding for sewerage and water treatment, and we believe that the four projects chosen for the Regional Infrastructure Fund also help us meet this purpose.

These projects have been independently assessed as providing the greatest economic benefit for the funding provided.