Considerations we make
When we look at your application, these are some of the things we take into account - so it makes sense to address them in your application.
Risk and reward
All PGF projects must provide clear benefits which can be linked to our goal of lifting the productivity of the regions of Aotearoa New Zealand.
We expect projects to provide a net benefit, that is, value created by the PGF’s investment exceeds its cost. This may be considered across a portfolio of projects, where each adds to a beneficial sum of parts.
We encourage you to look at both the direct and indirect benefits from your project proposals, and demonstrate the overall value created in both economic and non-economic terms. This can include social, cultural, environmental and community benefits.
Each project proposal should include its whole-of-life costs, bearing in mind that ongoing operational costs will not typically be funded through the PGF.
The risks for each project must be clearly outlined in your proposal, including the risk of not achieving expected benefits. You should highlight any suitable mitigations or contingencies to manage these risks. Funding decisions will weigh up the reward and value created against the risks of projects.
We may also consider whether projects might be better funded through other government programmes and sources, and work with applicants to identify those where relevant.
Capacity to deliver
Projects and initiatives need to have the right skills and resources to deliver intended benefits and ensure success.
When we evaluating projects, we look for demonstrated capability within the team, a track record of success, and/or partnering with others to deliver. Your application should make clear how projects will be delivered on time and budget, with benefits realised and risks managed.
We look for contributions to come from applicants, or related parties.
Exceptions may be considered where the benefits to the region or to New Zealand overall are high — for example, projects supporting people to get into employment.
We are looking to leverage investment from private enterprise, iwi and philanthropy. Projects that are deemed commercial or quasi-commercial will require a 50% contribution from the applicant, or a related third party.
Grants provided to commercial projects will generally require a 60% contribution from the applicant or related third party (in line with other government programmes).
Co-contribution can be in-kind rather than financial if this is appropriate for the project.
Co-investment with individual firms may occur if they generate opportunity and value that would not otherwise occur, where benefits are shared beyond the specific firm sponsoring the project, and where government contribution creates additional value. For example, co-investing may lead to increased employment opportunities, increased research capability, or a contribution to regional infrastructure for multiple beneficiaries.
For example, if a business was proposing to invest in a new factory/processing facility:
- If the location has above-average rates of people not in education, employment or training, we might partner with the business to fund a range of apprenticeships for local people, with supporting pastoral care.
- We might co-fund a research facility attached to the plant, if the research is of value to the regional economy (e.g. research into monetising a local natural resource)
- We could co-fund more extensive enhancements to the local transport and logistics network than would otherwise occur, where they would deliver more benefits to a community or region.
Published: Oct 26, 2018