2.1 Government approval processes

Government will be responsible for approving the initial project investment as well as the decision to procure the project using a PPP process. Government funding should be appropriated prior to pursuing procurement through a PPP process. This demonstrates to the market and the public that government is committed to undertaking the project.

Individual jurisdictions will determine the level of government approval required for using a PPP process. This may vary on a project-by-project basis.

There are a number of key milestones in the PPP process at which governments should approve various actions before the project proceeds to the next phase. In particular, these key project milestones involve the:

• release of EOI;

• release of RFP;

• selection of a preferred bidder; and

• execution of the contract.

Governments should also be notified of and/or endorse the outcomes at the selection of the short-listed bidders following the EOI phase and the final negotiated outcome.

Additional approvals should also be required in certain situations such as:

• where there is a material change to the project including an amendment to the key project objectives, scope of services or where the conclusions or major assumptions of the business case (including the economic and financial appraisals) change significantly;

• if there is any material change in the risk allocation from that which was last approved by government;

• if an amendment to the budget funding is required; and

• where issues relating to the public interest arise.

Planning approval processes will vary between jurisdictions but should ideally occur concurrently with the PPP procurement tender and negotiation phases.

Furthermore, if the Procuring Agency wishes to renegotiate any area of a PPP contract after it has been approved and signed by government, the agency should be required to obtain approval prior to commencing renegotiations from the Relevant PPP Authority.