The next national infrastructure pipeline will be “investor-focused” and will be regularly updated, the head of the National Infrastructure and Service Transformation Authority (NISTA) has told MPs.
Appearing before parliament’s Public Accounts Committee (PAC) on Monday (12 May), Jean-Christophe Gray, interim chief executive at the newly established body, set out plans to improve the National Infrastructure and Construction Pipeline (NICP).
According to Construction News’ sister magazine, New Civil Engineer, Gray said the next NICP spreadsheet of major projects will be published this summer alongside its 10-year Infrastructure Strategy.
Since 2016, the NICP has been published by the Infrastructure and Projects Authority (IPA). But in recent years the publication of the pipeline has been delayed, with gaps in 2019, 2020 and 2022.
The IPA and the National Infrastructure Commission (NIC) have been absorbed into NISTA, which launched last month, and the new body is now taking responsibility for the pipeline.
Speaking at the PAC as part of its inquiry into the use of private finance in public infrastructure, Gray said the next iteration will seek to “learn lessons” with more regular updates and the inclusion of more information relevant to investors.
NISTA is committed to updating the new pipeline “very regularly”, Gray said, adding: “I think my expectation would be around every six months.”
The pipeline will not only provide information on project cost and schedule, but also give “greater granularity” to investors around the types of financing models that various projects are willing to entertain, Gray added.
“On the pipeline itself, previously we’ve had a more construction industry-focused pipeline and it hasn’t always been done annually. What we are trying to do is develop that into an investor-focused pipeline,” he said.
Asked how NISTA would prioritise projects within the infrastructure pipeline, Gray said the priorities would flow from the 10-year Infrastructure Strategy and those that the government believes are aligned with its growth objectives.
Gray – who will be replaced next month by Becky Wood as permanent chief executive – added that it will be important that the projects in the pipeline are accompanied by the appropriate level of detail, in particular around financing models that investors can take.
“There’ll be a role for NISTA and the government to challenge contracting authorities to say, ‘Have you got the appropriate level of detail required?’” he said.
Gray appeared in front of the committee alongside NISTA deputy chief executive Matthew Vickerstaff, who was asked about the challenges of building a “credible” pipeline.
He responded that the “real challenge with the pipeline is developing those investable models”.
He continued: “We have a number: we have the regulated asset base model; we have Contracts for Difference; if you take carbon capture utilisation and storage, we now have dispatchable power agreements […] So we are evolving those but the real challenge is not so much working up the finance, it’s actually working up the funding models.
“So it’s developing an investable set of projects which will attract not just domestic capital but international capital as well, because if you do that, you’ll drive down the price and get a better outturn in terms of overall projects.”
The 10-year Infrastructure Strategy and accompanying pipeline are expected to be published in June around the conclusion of the Spending Review.