The list of potentially viable project delivery options developed in section 2.2.3 should be assessed to determine whether there is potential for a public private partnership arrangement to deliver value for money.
In their assessment, agencies should consider key value for money drivers, including,
∙ allocation of risk to the private sector where it is best able to manage that risk
∙ output based specification which avoids unnecessary prescription of delivery mechanisms
∙ private sector innovation
∙ long-term nature of contracts
∙ performance measurement and incentives
∙ increased competition
∙ Private Sector management skills
∙ Improved asset utilisation
∙ alignment of the interests of public and private sectors
∙ transparency of processes.
This assessment may result in modifications to, or abandonment of, some or all of the project delivery options. The assessment will involve the following: