Australian Capital Territory

ACT Government to partner with private sector to deliver major projects

THE ACT Government last week said it will use Public Private Partnerships (PPPs) as an option to deliver major infrastructure projects in the Territory, following the release of a new procurement framework to help engage the private sector.

In a statement, Treasurer and Deputy Chief Minister Andrew Barr said the performance-driven contracts will help deliver major infrastructure projects and ensure they are completed on time and on budget, as well as provide a boost to the local economy.

"Attorney General Simon Corbell and I are pleased to announce that the redevelopment of the Supreme Court will be the first major infrastructure project delivered under the new PPP framework," Mr Barr said.

Other projects being considered for delivery under the PPP framework include Capital Metro, the 'City to the Lake' project, and the University of Canberra Public Hospital.

According to the statement, estimated cost savings of 11.4 per cent, on average, can be made under a PPP compared to traditional procurement methods. It added that PPPs generally involve high levels of risk transfer to the private sector and high levels of integrated delivery including design, construction, maintenance, operations and private sector financing.

"Using the PPP model also helps ensure facilities are well maintained and efficiently operated under long-term commitments between the government and private sector," Mr Barr said.

"The decision to undertake projects using PPPs is only undertaken after rigorous examination of costing models in relation to public sector vs private sector project delivery. This is consistent with similar approaches to procurement that have been successfully undertaken both in Australia and overseas."

More information about The Partnerships Framework is available from ACT Government Treasury website at <http://www.treasury.act.gov.au/>.

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