Attached is a copy of the new Guidelines for Private Sector Participation in Infrastructure Provision, which were released recently following an extensive review process co-ordinated by the Department of State Development.

All State Government agencies are required to adhere to these guidelines in undertaking private infrastructure projects. However, it is important to note that the guidelines do not apply to general purchasing or tendering for capital works projects funded by the public sector.

It is expected that over the next 12 months a large number of private infrastructure projects will be undertaken and initiated. Ministers should ensure that all areas of their administrations are actively seeking after and responding to private infrastructure proposals while ensuring that the public interest is fully protected.

It should be noted that all Government agencies have responsibilities arising from the review including that:

• as from 1991-92 all agencies will be required to develop a Strategic Capital Works Plan which identifies the current and projected needs within their area of responsibility. Following approval by the Capital Works Committee of Cabinet, these Plans should be made publicly available;
• as from 1991-92, all agencies will be required to include supporting information demonstrating that the potential for private sector involvement has been investigated, when submitting net capital works proposals valued at over $5 million, for the consideration of the Capital Works Committee of Cabinets;
• comprehensive details should be included in Annual Reports of private infrastructure projects, irrespective of the stage of the project.

Ministers should ensure also that the identity and responsibilities of the private infrastructure contact officers within their
administrations are well circulated so that all private infrastructure enquiries are directed to the appropriate officers.

Care should be exercised in developing briefs for projects to ensure that all pertinent issues are examined, such as Loan Council constraints. In this respect, the Private Infrastructure Committee chaired by State Development or its individual members will be able to assist with advice.

Any enquiries about the guidelines should be directed to the Department of State Development.

Nick Greiner MP

Branch: IRB
Date: 15 August 1990