Snapshot

Core service delivered: Education. Nine new public schools in Sydney, Wollongong, Shell Harbour and the Central Coast.

Government department: NSW Department of Education and Training (DET).

Consortium: Axiom Education consortium (ABN Amro - sponsor, St Hilliers, Hansen Yuncken - builder and SSL Facilities Management -facilities manager).

Contract period: 30 years.

The first Australian schools PPP project reached financial close in March 2003. This project has delivered nine new public schools in Sydney, Wollongong, Shell Harbour and on the Central Coast. The project was awarded to Axiom Education consortium (comprising ABN Amro, St Hilliers, Hansen Yuncken and SSL Facilities Management), who will also provide non-core services for the 30 year life of the project.

The project received a favourable report from the Auditor General in 2006, which concluded that the contracts "were established and let in a way that greatly assists their potential for delivering value for money". New South Wales Treasury also released its own post implementation review of the first schools project in October 2005. This report 5 claimed that schools "were delivered some two years earlier, on average, than would have been possible had traditional public sector funding been used. PFP delivery has enabled a faster response to demographic needs in urban growth areas."

Given the success of the first New Schools project, it is no surprise that the NSW Government sought to capitalise on the experience, rolling out a second project as part of its plan to accommodate the projected demographic needs in New South Wales' urban growth areas.

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5 Privately Financed Projects (PFP) New Schools Privately Financed Project Post Implementation Review, December 2005, NSW Treasury