Public Private Partnerships (PPPs) are a key form of procurement for the delivery of major infrastructure projects throughout Australia. Governments have used PPP procurement successfully to deliver many large and complex projects, achieving good value for money and superior whole of life outcomes.
Many aspects of the Australian PPP model are world leading. It has attracted strong interest from the domestic and international markets, evidenced by many other countries seeking to learn from the Australian experience and the desire of major international companies to bid for Australian PPP projects. A report by the OECD in 20071 ranked Australia as the world's most mature PPP market, ahead of the UK and Canada, though Canada has gained in reputation and number of transactions in recent years.
Australian Governments have worked consistently to develop and improve PPP procurement practices over the years. As part of this process, Infrastructure Australia has appointed KPMG to undertake a "Review of Barriers to Competition and Efficiency in the Procurement of PPPs". The purpose of this Review is to recommend potential strategies to Governments to resolve those key issues identified as important to the continued improvement of the Australian PPP market. The Review draws together:
• key themes raised during market consultations with existing and potential PPP market participants (Participants)
• lessons learnt from a review of other leading international jurisdictions that have active and mature PPP markets.
This Review looks only at the PPP market and potential improvements to its procurement processes. It does not consider broader issues such as a comparison with other methods for procuring infrastructure projects.
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1 OECD (2007). Infrastructure to 2030, Volume 2, Mapping Policy for Electricity, Water and Transport