6.1
Frequently asked questions
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Q1. What relevance does the PSC have to our budget?
Q2. Is it always necessary to construct a PSC?
Q3. At what stage in the Partnerships Victoria process does the PSC need to be completed?
Q4. Can the PSC be changed?
Q5. How accurate does the PSC need to be?
Q6. Should the PSC be disclosed to bidders?
Q7. What happens if no bid betters the PSC?
Q8. Should transaction costs be included in the PSC?
Q9. When should the simple and advanced risk valuation techniques be used?
Q10. How are risks allocated among the parties to a project?
Q11. Should the PSC include a residual value for the property, as it has a useful economic life longer than the Partnerships Victoria project?
Q12. Why use a DTF-specified discount rate if a government department has money in the bank and the real cost of financing the project is the lost interest on those deposits?
Q13. What should be assumed about future inflation?
Q14. Should the PSC be based on cost figures from previous projects, even though things may be done better?
Q15. Should the PSC include the value of the pre-existing assets required to provide the service? How should these assets be valued?
Q16. Should the PSC be adjusted to reflect the fact that Partnerships Victoria transactions result in a tax payment to DTF?
Q17. Should we include a cost for insurance in the PSC?
Q18. If a Partnerships Victoria bidder proposes an innovative variant bid, should there be another PSC to compare it with value for money?