New Zealand backed US co-funding port on former Cook Islands military base without a formal business case

Detailed summary

New Zealand supported the United States co-funding a major port upgrade on a former American military base in the Cook Islands without a business case. The port upgrade in…

Foreign Affairs Minister Winston Peters has said the port upgrade in the Cook Islands was "hugely significant".

New Zealand supported the United States co-funding a major port upgrade on a former American military base in the Cook Islands without a business case.

The port upgrade in Penrhyn, part of the northern Cook Islands, is on track to be co-funded with the US Government.

The latter is intending to contribute about $84 million, and the New Zealand Government is topping up the investment with a further $17.5m.

The partnership was announced by the US Government, Cook Islands Prime Minister Mark Brown and Foreign Minister Winston Peters at the Pacific Islands Forum (PIF) leaders’ meeting in Palau in early September.

Documents obtained by Newstalk ZB under the Official Information Act show Ministry of Foreign Affairs and Trade (MFAT) officials said while there was no business case, the project was a “priority” and there were “strong reasons to support it”.

A briefing from MFAT officials to the Foreign Minister in May 2026 noted Cabinet consideration of a project of this scale would usually come with a business case.

“Major New Zealand development activity would ordinarily be supported by a detailed business case prepared over a number of years with firm cost estimates,” officials admitted.

Officials added it would not be possible to complete a feasibility study or business case in the time available before the proposed announcement at PIF, meaning Cabinet would have to make a decision “based on more preliminary information”.

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