Traditional public sector accountability arrangements do not fit these diverse forms of partnerships. Consequently, there is a need for tailored, innovative approaches based on a full appreciation of the risks and benefits involved, if there is to be credible accountability to Parliament for both the results and the manner in which they are achieved. This is particularly the case where the public sector makes use of private sector financing to deliver public services. 169
The fourth inquiry term of reference required the Committee to examine the various government models for evaluating and monitoring private investment in public infrastructure projects, and the governance and accountability arrangements.
This chapter looks at how PPPs are governed, how decisions are made, and how evaluation and monitoring arrangements contribute to public accountability requirements. These include policy making, project planning, pre-decision consultation, estimation of financial viability and net community welfare, evaluation of tender bidders and choice of successful tender, monitoring of project throughout construction, performance audits by the Auditor-General after completion and the post completion evaluation of outcomes achieved. These evaluations should cover economic, social and other community interests as well as financial arrangements. This chapter will also review accountability arrangements, and because accountability requirements cover a broad arena, a range of institutions will be relevant to ensure appropriate governance.
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169 P Barrett, AM, (then) Auditor-General for Australia, Auditing in a Changing Governance Environment, presentation, Senate Occasional Lecture Series, Canberra, 21 June 2002, p.14