It is the Treasurer’s responsibility under the PAFA Act to give approval for agencies to enter into joint financing arrangements.
As part of the process for seeking the Treasurer’s approval, the ‘terms and conditions for negotiations of private sector infrastructure projects’ (refer PSI-3 in Appendix 4) should be updated to reflect any changes to the project made as a result of negotiations with the preferred proponent. The final project deed should also be forwarded to Treasury.
These are important steps in ensuring that the Treasurer is aware of the nature of the project prior to exercising his discretion to grant approval to the agency to enter into the joint financing arrangement.
In addition, state owned corporations may need to obtain the written approval of the shareholding Ministers under section 20X of the State Owned Corporations Act 1989 (SOC Act). This section of the SOC Act deals with the acquisition and disposal of fixed assets and investments. State owned corporations should check with NSW Treasury to determine whether this approval is required for their particular privately financed project.