Chapter 3:  Private investment in public infrastructure in Victoria

Recommendation 1:

All major infrastructure projects including PPPs be subject to independent post project reviews at the completion of the construction phase and during the operational phase to measure the degree to which agreed outcomes are met. All results be periodically reported to Parliament.

 

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Recommendation 2:

Before proceeding with any further build, own and operate projects, the government ensure that public benefits are maximised.

 

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Recommendation 3:

Long term peppercorn leases extending beyond the concession period should not be given to a private consortium, unless it can be clearly demonstrated that there is a public benefit.

 

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Recommendation 4:

All existing public private partnership projects involving operating leases be reviewed to determine whether they should be reclassified to finance leases under current accounting standards.

 

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Recommendation 5:

Public private partnership contracts should include the total amount of payments outlining the total government commitment and the impact on state debt. This information should be published on the Partnerships Victoria website, with summary information included in the state budget papers.

 

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Recommendation 6:

Further guidance material be developed to cover the situation where, during the course of the public private partnership contract, transferred risk reverts to the Victorian Government.

 

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Recommendation 7:

The Victorian Government develop a policy on maximising the benefits to the state from commercial opportunities arising from public private partnership arrangements.

 

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Recommendation 8:

Timeframes should be reduced, where possible, for the period of concession agreements so as to limit the impact of debt repayments for future governments.

 

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