A VFM analysis was conducted by MPV to acquit the successful bid against the PSC, as well as achievement of the project scope, objectives and expected functionality.
Evidence we viewed showed that on financial grounds alone, the cost of the contracted project was lower than the net present value of the PSC.
In addition, although non-financial benefits were not expressly modelled in the project business case, or fully reflected in the PSC, in Audit's view it is reasonable to expect them to generate direct and indirect positive value for the State economy over the life of the project.
Figure 2D Examples of non-financial benefits from the development
| • 6 "green star" Green Building Council of Australia rating for the core facility • Effective integration of the Polly Woodside maritime heritage precinct • Complementary commercial development and upgrade of the precinct • Pre-built capacity for future expansion of the existing exhibition halls • Addition to the rate base for City of Melbourne and City of Port Philip from the commercial precinct improvements • Improved amenity and public domain facilities throughout the precinct |
Source: Victorian Auditor-General's Office analysis of MPV/DIIRD documents.