The risk allocation in the Project Agreement is consistent with Partnerships Victoria guidelines. In Partnerships Victoria projects, the state seeks to achieve best value for money by allocating particular risks to the party best able to manage them at the least cost. This process resulted in risks being either:
• retained by the state
• transferred to the private sector
• shared between the parties.
The Project Agreement established the obligations of each party in relation to these risks. (A detailed breakdown of the various risks and their allocation is provided at Appendix A of this report.)