In the Australian urban water industry the chief role of the private sector is as an input supplier to provide services, technology and infrastructure directly to established water authorities. There are also recent examples of outcomes-based procurement in which the private sector competitively bids to deliver a service to an existing urban water utility with no specification from the contractor to the approach taken.
In some states and territories there are extensive outsourcing arrangements operating in urban and rural areas. For example, in the Northern Territory the Power and Water Corporation outsources 100 per cent of its design, project management and construction activity. In Melbourne, water authorities retain management function and the ownership of assets but outsource most other functions.
Q5: | What are the pros and cons of using outsourcing as a way of involving the private sector? |