Government Eyes Chorus Investment Sale to Fund Schools, Hospitals, Roads

The Government is considering selling its investment in telecommunications company Chorus, a move that could unlock hundreds of millions of dollars in capital for essential national infrastructure projects such as hospitals, schools, and roads.

Finance Minister Nicola Willis and Infrastructure Minister Chris Bishop announced that the National Infrastructure Funding and Financing (NIFFCo) agency will lead a feasibility study into selling the Crown’s debt and equity securities in Chorus — assets originally acquired to fund the Ultra-Fast Broadband (UFB) rollout.

Redirecting Capital for Greater Public Benefit

The Crown’s investment in Chorus dates back to the early 2010s as part of the UFB initiative, which was successfully completed in 2022. The programme brought high-speed internet to 87% of New Zealanders, transforming digital connectivity across the country. However, with the completion of the initiative, Ms Willis says there is no longer a policy reason for the Government to retain its Chorus holdings.

“Most New Zealanders were probably not aware the Government owns this investment in Chorus, nor feels any particular benefit from it,” Ms Willis said. “It is both sensible and prudent to consider the feasibility of divestment, to redirect the Government’s capital into projects that New Zealanders can directly benefit from.”

Ms Willis emphasised that the move aligns with the Government’s fiscal strategy to make the public balance sheet more efficient and channel funds into productive capital investments that foster economic growth. “Early monetisation of NIFFCo’s Chorus securities is one opportunity worth exploring,” she said.

A Strategic Move Toward Fiscal Efficiency

Under the proposed plan, NIFFCo will examine whether the Crown could sell its securities in early 2026, several years before their scheduled maturity, potentially freeing up significant financial resources earlier than expected.

Infrastructure Minister Chris Bishop said the feasibility study would determine whether selling to private investors makes commercial sense. “If such a sale gains approval and goes ahead, the proceeds would return to the Crown and be made available for capital allocations in Budget 2026,” he explained.

“That means Kiwis reaping the benefits of jobs, infrastructure, and growth sooner,” Bishop added, noting that any sale would be carried out with Treasury oversight to ensure transparency and value for money.

Due Diligence and Market Testing

NIFFCo’s assessment process will include due diligence on the contractual terms of the securities, commercial valuation, market testing to gauge investor appetite, and recommendations on the optimal sales process. Advice on whether to proceed is expected to reach the NIFFCo board and shareholding ministers by the end of 2025.

Any sale will require ministerial approval, and the Government has made clear that both the decision to go to market and the final sale price must meet strict value-for-money criteria.

Broader Economic Context

The move reflects a wider government approach to asset recycling — selling non-essential public investments to fund higher-priority infrastructure needs. Similar approaches have been used internationally to balance fiscal responsibility with investment in long-term growth.

If approved, the divestment could inject much-needed capital into national infrastructure programmes, supporting construction, regional development, and employment.

By shifting capital from mature investments like Chorus into sectors with higher social and economic returns, the Government aims to stimulate activity across New Zealand’s economy while maintaining its commitment to responsible fiscal management.