These guidelines show the NSW Government’s:
- recognition of the benefits of using Public Private Partnerships (PPPs) as an effective way to deliver infrastructure in the right circumstances
- commitment to assessing different PPP models early in the procurement process
- commitment to achieving the best outcomes for government and taxpayers by working with the private sector to deliver service-enabling infrastructure
These guidelines are based on the following principles:
- Procure PPPs in a professional and transparent way, keeping tender costs low and giving all private sector participants a fair chance
- Apply consistent risk allocation across NSW PPPs, unless specific project needs justify a different approach
- Use stable delivery structures with sustainable debt financing and strong commercial and financial arrangements
- Do not guarantee private sector borrowings
- Deliver and operate public infrastructure with an acceptable level of risk remaining with the State
- Encourage innovation in how infrastructure and services are delivered
- Disclose contract and tender information in a timely and open way
- Support shared risk allocation between government and the private sector, in line with the NSW Government’s 10-point commitment to the construction sector
These guidelines provide a clear and competitive way to find innovative solutions that improve services and deliver value for money. This includes:
- smart risk allocation
- using combined strengths of public and private sectors
- encouraging innovation in operations
- integrating design and construction
- using assets efficiently
- managing assets across their full lifecycle
