Appendix 3: About our work
Review of the Provincial Growth Fund reset.
Our review12 examined how well the PGF reset was set up to deliver on its objectives. We reviewed all projects that had funding repurposed and a sample of six new projects that received funding from the PGF reset. The tables below provide information about the projects we looked at.
The focus of our work was on Kānoa-RDU’s role in the repurposing of PGF funds and implementing the PGF reset. We did not speak with other agencies, funding applicants or recipients, or the Regional Economic Development Ministers involved in the PGF reset.
Projects repurposed for the Provincial Growth Fund reset detailed review
| Type of project | Status of project | Reason for longlisting as documented in the Cabinet paper | Outcome |
|---|---|---|---|
| Infrastructure – rail | Contract in place | Unlikely to be viable under Covid-19 market conditions | Grouped project had contract varied with reduced scope. Funding repurposed $56.0 million |
| Infrastructure – rail | Contract in place | Unlikely to be viable under Covid-19 market conditions | |
| Infrastructure – rail | Contract in place | Unlikely to be viable under Covid-19 market conditions | |
| Primary industry | Contract in place | Applicant expressed desire to terminate or rescope | Contract varied at the instigation of the recipient. Funding repurposed $1.7 million |
| Construction of multi-use building | Contract in place | Not met deliverables to date, low confidence in delivery | Contract varied with reduced scope limited to consent lodgement. Funding repurposed $5.0 million |
| Infrastructure – rail | Approved (not yet contracted) | Likely to be significantly delayed | Contracted with reduced scope. Funding repurposed $4.0 million |
| Infrastructure – ports | Approved (not yet contracted) | Resource consent and consultation requirements, likely to be lengthy, preventing short term impact | Deed of grant entered into to take the project to the stage of completed detailed design. Funding repurposed $18.6 million |
| Workforce training and development | Approved (not yet contracted) | Unlikely to be viable under Covid-19 market conditions | Did not receive funding. Funding repurposed $10.793 million |
| Construction of community and cultural centre | Approved (not yet contracted) | Applicant expressed desire to terminate | Did not receive funding. Funding repurposed $19.82 million |
| Primary industry | Approved (not yet contracted) | Unable to proceed on established conditions | Did not receive funding. Funding repurposed $9.7 million |
New Provincial Growth Fund reset projects that were part of our detailed review
| Type of project | Project category | Funding details |
|---|---|---|
| Marae renovations | Tier 1 | $500,000 (Grant) Approved 28 August 2020 |
| Work readiness | Tier 1 | $5,255,000 (Grant) Approved 23 July 2020 |
| Social capital | Tier 1 | $1,781,800 (Grant) Approved 16 June 2020 |
| Immediate capital investments | Tier 2 | $12,190,905 (Loan) Approved 16 June 2020 |
| Māori and Pasifika business investments | Tier 2 | $11,930,000 (Loan) Approved 29 September 2020 |
| Small scale infrastructure | Tier 3 | $14,200,000 (Grant) Approved 16 June 2020 |
12: Conducted under section 16 of the Public Audit Act 2001.