Compared with some international jurisdictions, the number of PPP projects undertaken in any year and the announced pipeline of future PPP projects in Australia is limited. Australia has closed fewer PPP projects since 2005, and has a smaller announced pipeline of PPP projects, than the UK, Spain, Canada and France. Even after adjusting for Australia's smaller population, its pipeline falls well behind those of the UK and Canada. However, the average value of Australian PPP projects is substantially higher than that of both the UK and Canada, two comparable jurisdictions.
Australian PPP processes compare very favourably with similar processes internationally. The average procurement time for social infrastructure of 17 months is significantly shorter than that in the UK (34 months) and only slightly longer than that in Canada (16 months).
Bid costs in Australia also compare favourably with those in the UK, though they are higher than those in Canada. Bid costs at risk have been 0.5 - 1.2% of project capital value in Australia, partly depending on the project size, with large projects generally costing proportionately less. A like-for-like comparison between countries is difficult, due to limited information, substantial variability in bid costs as a proportion of capital costs, and differences in project sizes. Canada's figures are lower in Australia, at 0.35 - 1% of capital value; but costs in the UK are higher, at 2 - 3% of capital value. This comparison is distorted to some extent by Australian projects on average being larger than those in Canada and the UK. For smaller projects, where a like-for-like comparison is possible, Australian bid costs are around 25 - 45% higher than those in Canada.
In contrast to some countries, Australian Governments do not approach PPPs in order to supplement public expenditure restrictions. Rather, they use PPPs only when they are the most suitable procurement approach for a project. The benefits that Australia seeks to obtain from PPPs result in a need to integrate design, construction, operation, maintenance and finance; and require extensive legal documentation. A focus on wider value for money, including that arising from design innovation, means that Australian PPP projects generally are more complex than those in other countries. Australia's federal political system leads to further complexity, with different laws, regulations and standards between States; and the country has a complex tax system relating to PPP projects. As a result of these factors, Australian procurement processes often are different from those of other countries and hence are not directly comparable.