3.2  Process

Stage three builds on the preliminary evaluation by developing a comprehensive business case analysing each of the project delivery options. Additional information is available in the public private partnership business case development supporting document.

The extent to which each of the elements in this process needs to be undertaken will depend on the specific project delivery options being considered. Where the project delivery option involves private financing, the analysis will obviously be more complex.

The headings used in this section are for reference purposes only and, in practice, the activities described should be developed iteratively. Integration of technical and financial analyses is vital because the preferred project delivery option must be both technically sound and bankable, and therefore able to satisfy the requirements of debt and equity providers.

The key elements of stage three, illustrated in Figure 4 are described in further detail below,

∙  formalisation of the project steering committee and the government project team

∙  development of a project plan

∙  development of an output specification

∙  development of the reference project

∙  development of the public private partnership project

∙  completion of risk analysis and development of a risk allocation matrix

∙  market sounding

∙  completion of the public interest assessment

∙  completion of environmental, planning, cultural heritage, native title and other specialist studies

∙  completion of the employee, employment and skills development assessment

∙  development of the public sector comparator

∙  development of the partnership model

∙  value for money assessment of project delivery options

∙  compilation of the public private partnership business case

∙  consideration by Cabinet.

The public private partnership business case is developed around the public sector comparator and partnership model. These models require development of the output specification and the risk allocation matrix and a detailed understanding of economic and financial issues, public interest issues, policy implications, native title, cultural heritage and environmental impact.

Figure 4 - Key elements of stage three