Summary of Public Private Partnerships

The State controlled $245 billion of property, plant and equipment assets at 30 June 2011 ($235 billion). Of this, $124 billion ($119 billion) relates to infrastructures systems. Infrastructure can be provided via other mechanisms than State owned, financed and operated.

NSW Auditor-General's Report Volume Three 2011

SUMMARY OF PUBLIC PRIVATE PARTNERSHIPS

Public Private Partnerships (PPPs) are long-term contracts between the public and private sectors where government generally pays the private sector to deliver infrastructure and related services to meet government’s service responsibilities. PPPs rely on borrowing or equity funding from private sources.

The State has over 40 public private partnerships to provide facilities and services

The State currently uses four broad types of PPP arrangements:

 

●  purchase arrangements with deferred payments, which include infrastructure that is State owned and controlled, and which has been financed by the private sector

 

●  finance lease arrangements, which include infrastructure owned and financed by the private sector, but which is controlled by the State

 

●  Build (Own) Operate Transfer arrangements, which include infrastructure that is financed, built, and operated for a certain period of time by the private sector, after which ownership and control of the infrastructure is transferred to the State. The private sector recovers its investment through charges paid by the infrastructure users

 

●  Build Own Operate arrangements, which include infrastructure that is financed, built, and operated by the private sector generally for the life of the infrastructure. The private sector recovers its investment through charges paid by the State.

 

The State currently has over 40 active PPPs that cover a wide range of government services:

 

 

PPP

PPP commencement (a) 

PPP term (years) 

 

Purchase arrangements with deferred payments

 

 

 

Royal North Shore Hospital (RNSH) Redevelopment – Stage 2 

2011 

26 

 

Bathurst, Orange & Associated Health Services 

2011 

24 

 

Bonnyrigg Living Communities Project

2010 

27 

 

Newcastle Mater Hospital Redevelopment 

2009 

25 

 

Long Bay Prison and Forensic Hospitals 

2008 

26 

 

Ten new schools (New Schools Project 2) 

2007–2009 

29 

 

Nine new schools (New Schools Project 1) 

2004–2005 

29 

 

Finance lease arrangements

 

 

 

Electric Passenger Rollingstock replacement 

2011 

33 

 

Rollingstock Maintenance Facility 

2010 

30 

 

Metropolitan Buses 

2005 

 

Parramatta Police Headquarters 

2004 

20 

 

Hawkesbury Hospital 

1996 

20 

 

Blue Mountains Sewage transfer tunnel 

1996 

35 

 

Macarthur Water Treatment Plant 

1995 

35 

 

Sydney Harbour Tunnel 

1992 

30 

 

Build (Own) Operate Transfer (BOT or BOOT) arrangements

 

 

 

M2 Motorway Widening 

(b) 

(b) 

 

Lane Cove Tunnel 

2007 

30 

 

Westlink M7 (Western Sydney Orbital) Motorway 

2005 

32 

 

Cross City Tunnel 

2005 

30 

 

Airport Line Stations 

2000 

30 

 

St George Hospital Car Park 

1999 

25 

NSW Auditor-General’s Report Volume Three 2011 SUMMARY OF PUBLIC PRIVATE PARTNERSHIPS

Proposed public private partnerships include M5 widening, extending light rail and upgrade of convention facilities

Eastern Distributor Motorway 

1999 

49 

Stadium Australia 

1999 

32 

Sydney SuperDome 

1999 

31 

Randwick Hospital Car Park 

1998 

25 

Light Rail System 

1997 

31 

M2 Motorway 

1997 

45 

Bowral Private Medical Imaging 

1996 

15 

Sydney Hospital Car Park 

1995 

25 

Opera House Car Park 

1993 

50 

M4 Motorway Service Centres 

1993 

25 

M5 Motorway 

1992 

31 

 

Build Own Operate (BOO) arrangements

 

 

 

Rosehill Camellia Recycled Water Project 

2010 

21 

 

Pindari Mini Hydro Power Station 

2001 

(c) 30 

 

Woronora Water Treatment Plant 

1997 

25 

 

Prospect Water Treatment Plant 

1996 

25 

 

Illawarra Water Treatment Plant 

1996 

25 

 

Burrendong Mini Hydro Power Station 

1996 

(c) 30 

 

Copeton Mini Hydro Power Station 

1995 

(c) 30 

 

Liverpool Hospital Car Park 

1994 

19 

 

Glenbawn Mini Hydro Power Station 

1994 

(c) 30 

 

Wyangala Mini Hydro Power Station 

1991 

(c) 30 

 

Source:  The Treasury (unaudited)

a  PPP commencement is the year the project was ready for operation.

b  The M2 Motorway widening is in its construction phase. Construction is split into four stages with planned completion dates ranging from 2012–2013. Completion of the construction phrase will extend the original M2 Motorway term by four years (ending in 2046).

c  Excludes options to extend PPP term.

The Treasury advised of the following proposed PPPs:

 

Proposed PPP 

Nature of proposed PPP

 

M5 upgrade 

Widening the M5 Motorway from two lanes to three lanes in each direction 

 

Sydney Light Rail Expansion (Stage 1) – Inner West Extension 

Extend the existing light rail system 5.6 kilometres from Lilyfield to Dulwich Hill 

 

Sydney International Convention, Exhibition and Entertainment Precinct 

Procurement of the expansion and enhancement of the existing convention, exhibition and entertainment facilities at Darling Harbour