1. Introduction

PPP projects will be procured under the Partnerships Victoria Framework that requires compliance with both:

- the new National PPP Policy and PPP Guidelines; and

- the Victorian specific requirements outlined in this Partnerships Victoria Requirements document and annexures.

The National PPP Policy and Guidelines have immediate effect and will apply to all Victorian PPP projects that are released to the market from January 2009. Where the National Guidelines allow flexibility the Victorian specific requirements in this document and annexures apply (see in particular the annexures on commercial principles published on the Partnerships Victoria website).

The Partnerships Victoria Framework complements the broad range of asset management, investment standards and procurement guidance that apply in Victoria. These whole-of-government policies continue to apply to PPP projects delivered in Victoria.

Under the national guidelines, there is a new policy requirement to consider PPP delivery as one of the procurement options when planning for any capital expenditure over $50 million.

The national guidelines are consistent with the pre-existing Partnerships Victoria approach with the exception of the Discount Rate Methodology. While this changes the methodology for some projects, it is anticipated the outcome will not be materially different. ¹

Figure 1 Hierarchy of guidelines

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¹ Under the previous Partnerships Victoria approach, special rules for discount rates applied to large and unusual projects, while general rules applied to all other projects. Under the National Guidelines, the special rules apply to all projects.