Department of Treasury and Finance commissioned an independent external evaluation of eight partnership projects which was undertaken in January 2004 by Peter Fitzgerald from the Growth Solutions Group. The review concluded that the eight projects examined (of which two were actually completed), provided tangible evidence of the benefits available from harnessing private sector skills and innovation of design in infrastructure. Other positive aspects were seen as timeliness of delivery, certainty of price, and a whole-of-life approach to maintenance.
The report drew attention to a need to further improve risk identification and evaluation, along with improving the pricing of the transferred market risks. There was a need for a concentrated effort to improve the skills and capabilities of public servants involved in major infrastructure developments undertaken under partnership arrangements.
The Fitzgerald report, probably the most comprehensive review of the outcomes of partnership projects within Victoria, drew heavily on the experiences of the Auditor-General in evaluating selected PPP projects.
The Department of Treasury and Finance advised the Committee that in the early years, partnership arrangements focused on transferring most of the risks to the private sector partner. Initially in the 1990s focus was placed on projects being undertaken at the lowest cost, with the focus now on value for money.