4 DEVELOPING THE INFRASTRUCTURE STRATEGY

Linking long term planning strategies with the State Budget.

- The State Infrastructure Strategy links agency asset acquisition strategies with whole-of-government activities such as the Sydney Metropolitan Strategy and the State Budget.

- This process ensures that agency priorities are consistent with whole-of-Government priorities.

- The services that agencies intend to deliver are set out in Results and Services Plans (for general government) and Statements of Business or Corporate Intent (for public trading enterprises).

- In developing asset strategies, agencies and public trading enterprises ensure these strategies align with their service delivery plan, and that they are consistent with the Sydney Metropolitan Strategy and other long-term planning strategies. This is all part of the Total Asset Management process monitored by Treasury.

- These processes enable proposals for new infrastructure projects to be prioritised in cluster groups in the lead up to the Budget each year.

- Procurement policy reforms which form part of these processes assist with the management of cost pressures.

- Preliminary data, based on a recent sample of construction projects indicates a distinct reduction in project cost overruns. Such an outcome, if sustained, is a measure of the success of these reforms and provides confidence to proceed with the major infrastructure spending outlined in this Strategy.

LINKING THE SYDNEY METROPOLITAN STRATEGY WITH THE STATE BUDGET

FIGURE 10 LINKING INFRASTRUCTURE SPENDING