DTF notes the positive findings in the report on the new Royal Children's Hospital that the planning and business case for the new facility were sound, that the procurement process was fair and compliant with relevant requirements, and that government was provided with robust analyses of the project options and procurement strategies available.
DTF also notes Recommendations 4.5 and 4.6, which recommend that DTF amend its guidance to require agencies implementing Partnerships Victoria projects to:
• conduct and document quality assurance reviews of PSC estimates and related financial models - irrespective of whether they are internally or externally prepared - to reduce risks of error or inaccuracy, and to ensure that the state has sufficient understanding of these highly complex financial models; and
• maintain adequate documented evidence to support all costings and PSC calculations contained in a business case.
Following the introduction of the National PPP Policy and PPP Guidelines in late 2008, the Partnerships Victoria Framework now requires compliance with the new National PPP Policy and PPP Guidelines and the Victorian specific requirements outlined in the Partnerships Victoria Requirements document and annexures. DTF will review the guidance and determine the appropriate means of reflecting Recommendations 4.5 and 4.6 within this Framework.