3.26 Of the 13 projects reviewed, three were, or are proposed to be, procured using a PPP financing arrangement by Defence, using the methods described in Chapter 2. The PPP projects represent $1.924 billion, from a total of $4.303 billion36 - or 44 per cent of the total estimated cost for Defence capital works projects presented to the Committee over the past four years37.
3.27 The information to be provided to the Committee on the general aspects of a project is the same for PPPs as for direct procurement projects. The statement of evidence is the same as for direct procurement, but the confidential cost report consists of a Public Sector Comparator38 and an identification of the risks the private company or consortium will be allocated responsibility for as a result of the tender for PPPs. The Committee's Manual sets out the items that are to be included in the statement of evidence and cost report for PPPs.
3.28 Of the three projects, HQJOC and Single LEAP Phase 1 were referred to the Committee prior to the release of the November 2006 version of the Committee's Manual. The current Manual includes information on the requirements and workflows for PPPs, while the earlier versions of the Manual did not. Single LEAP Phase 2 was referred to the Committee after the November 2006 version of the Manual was released.
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36 The figures are the estimated cost amounts as reported to the Public Works Committee.
37 They also represent 56 per cent of the total value of the 13 projects reviewed in detail.
38 As explained in paragraph 2.6, the public sector comparator is an indication of how much the project would cost if directly procured, to allow a cost comparison between PPP and direct procurement to be made.