Description

The procurement of infrastructure and associated services through Public Private Partnerships (PPP) (PPPs are also known as Privately Financed Projects in NSW) by any NSW Government agency, including State Owned Corporations (SOCs), need to comply with:

• the National Public Private Partnerships Policy and Guidelines (the National Guidelines); and
• NSW specific requirements in these NSW Public Private Partnerships Guidelines.

These Guidelines supersede the NSW 2006 Working with Government Guidelines for Privately Financed Projects. PPP projects contracted through unsolicited proposals with a private sector proponent need to also comply with the Guide for Submission and Assessment of Unsolicited Proposals1 .

These Guidelines provide a transparent mechanism to competitively pursue innovative solutions to deliver improved services and better value for money. This is primarily achieved through optimal risk transfer, management synergies, encouraging innovation, efficient asset utilisation and integrated whole-of-life asset management. The achievement of "off balance sheet" transactions is not the motivation for the Government to deliver PPPs.

All NSW Government agencies, other than State Owned Corporations (SOC), are also subject to the NSW Government Procurement Policy2 and its associated guidelines. SOCs are subject to the Commercial Policy Framework3. Local government councils are required to comply with separate guidelines as per Part Six of Chapter 12 of the Local Government Act 1993.

PPPs have the following principal features:

• creating public infrastructure assets through private sector financing and ownership control;
• a contribution by Government through land, capital works, risk sharing, revenue diversion or other supporting mechanisms4; and
• engaging the private sector for a specified period for the delivery of related services.

Any "related services" contracted to the private sector should be determined on a project by project basis at the early planning stage of each infrastructure project. Government retains the overall responsibility to meet its service delivery objectives and goals, regardless of any PPP entered.

These Guidelines are based on the following principles:

• ensure PPPs are procured in a professional and transparent manner, minimising tender costs and providing fair opportunity to all prospective private sector participants;
• ensure stability of PPP delivery structures, with sustainable debt financing and robust commercial and financial structures;
• the Government will not guarantee private sector borrowings;
• encourage innovation in the provision of infrastructure and service delivery; and
• ensure the timely disclosure of information on contracts and tenders.

In NSW, for any public infrastructure project with a total estimated capital value exceeding $100 million, PPP must be assessed as a potential procurement method having regard to value for money drivers.