12 Description of the project
Guidance notes - Project description |
This section should describe the project and its objectives in clear and concise terms. A description of the background to the project, an explanation of the service need and the output specifications forms the basis of the reference project and the PSC. |
Note that in the worked example, government undertakes some commercial development in the form of a florist and the collection of car parking revenue, even though these operations may be contracted out. Under a public sector delivery method, this is not considered unusual as part of the operator's scope of business. However, the government would not envisage any further commercial development, such as a private hospital or medihotel, as part of a PSC. |
In developing the reference project and its associated PSC, a department should limit the scope strictly to activities which fall within its normal scope of business activity. Speculative commercial developments are often risky ventures and should only be included in the PSC if the department has experience of such developments and a mandate from government to pursue such business activities. Where a bidder proposes commercial development (i.e. beyond the commercial activities included in the reference project) as part of its bid, then the value of any land owned by the government, or the department which is used for the commercial development needs to be included in the bidder's Proposal. Under such circumstances, departments should seek advice from the Relevant PPP Authority and possibly also the Valuer-General. |
Description of the project (example)
The Minister for Health has announced that a new publicly operated hospital would be delivered in Australia under the National PPP Guidelines.
The government is seeking to appoint a private sector party to undertake the hospital project (the project), the elements of which are facility services, which comprise the provision of a hospital, car park and associated services over an operating phase of 10 years.
In addition, to increase the ability of the private sector to produce value for money to the government, the private sector party is offered the opportunity to undertake certain commercial development on segments of the site that are not required for the delivery of the facility services. The primary purpose of the project, however, as stated in the RFP, is to procure the facility services and, in doing so, maximise the value for money which can be achieved by government.
The jurisdiction will be responsible for the provision of all publicly funded health and other clinical and non-clinical ancillary services at the hospital facility, which will form part of an integrated health service.