The government has included a specific public interest test within its PPP policy as a key mechanism for protecting the public interest in PPP projects. The test is applied at several stages including prior to assessment of funding options, before release of a project to the market, and before the signing of a contract.
Carrying out these steps does not automatically guarantee that the public interest has been fully served in all instances. Because the results of public interest assessments are not made public, the level of rigour and the depth of challenge applied to the assessments by government officials and/or external advisers cannot be judged by Parliament or the community. The level of reliance that can be placed on internal analyses of public interest is therefore limited.
Public assurance on the adequacy of public interest considerations during later stages of the development of projects, and through their operational phases, can best be achieved through regular independent evaluations. The Committee considers that the Auditor-General should be encouraged by Parliament to provide a strong and continual audit focus on the management and effectiveness of PPP projects in Victoria.