Q11. Should the PSC include a residual value for the property, as it has a useful economic life longer than the Partnerships Victoria project?

The correct approach in the PSC will depend on the arrangements on contract expiry. A Partnerships Victoria project will have a defined term - perhaps 25 years. For consistency, the PSC needs to be analysed over the same term. If facilities or equipment acquired under the project have value beyond the end of the term, and the Partnerships Victoria contractor is to be paid a residual value at the end of the term, this should be reflected in a 'residual value' forecast in the PSC.