4.  PPP as a procurement option

A PPP is required to be evaluated as a potential procurement method for all infrastructure or asset projects with a capital investment over $50 million. To determine whether a PPP option should be explored in the initial stages of project development, agencies must complete the PPP suitability checklist when seeking funding for new policy proposals for projects over this threshold in accordance with the budget process operational rules. The checklist is a simple, high level tool used to assess the likelihood of achieving value for money from a PPP option.

Projects below the $50 million threshold may also be suitable for PPP delivery if they exhibit sufficient value for money drivers. The same process may be used to consider a PPP as a procurement option for these projects.

A procurement options analysis should be completed if the checklist indicates a project will be able to achieve value for money under a PPP arrangement, in accordance with the National PPP Guidelines: Procurement Options Analysis available at www.infrastructureaustralia.gov.au.