Key findings of the Committee: 1.1 The Victorian Government is committed to the use of public private partnerships (PPP) projects and currently has 16 projects worth $4.5 billion under contract. These PPP projects represent a small but significant element (approximately 10 per cent) of the provision of public infrastructure. 1.2 The criteria for Victorian Government usage of PPPs is that the project is large, complex in nature and there are opportunities for risk transfer and private sector innovation. The Victorian Government judges a successful public private partnership project as one that delivers value for money. 1.3 The financial and economic benefits of PPPs have been subject to much debate both in Victoria and in other jurisdictions, and there are opposing views about the benefits these projects bring for the community. 1.4 Submissions and evidence presented to the Public Accounts and Estimates Committee identified the potential for PPP projects to promote whole-of-life costing for assets and improved assessment and allocation of risks. A range of issues principally concerned with governance and the limited accountability and transparency of PPP projects were also raised. Other key issues concerned evaluation methods, for example that the public sector comparator should be used with caution; the fact that governments can be 'locked in' to contracts for long periods; the inadequacy of current infrastructure; the need to maintain infrastructure assets; and intergenerational equity. 1.5 The need for improved reporting and disclosure of information in government contracts, continues to be raised as concerns in this inquiry. |