1.  Executive summary

National public private partnerships (PPP) policy and guidelines draw on existing best-practice PPP material, primarily sourced from NSW and Victoria. NSW Treasury helped prepare and has endorsed the national guidelines, which should result in a consistent, best-practice approach to PPP delivery nationally.

NSW jurisdictional requirements are covered in the Working with Government (WWG) Guidelines for Privately Financed Projects policy document, published in December 2006. While national PPP guidelines are largely consistent with current NSW guidelines, this document examines NSW jurisdictional requirements that differ from the national guidelines.

These NSW specific differences are summarised in a section of the guidelines prepared by Infrastructure Australia. Jurisdictions will retain flexibility to apply their own requirements and principles in some areas including:

•  unique legislative requirements;

•  State Government approvals processes;

•  public interest considerations;

•  probity and disclosure policy requirements;

•  tender publications requirements;

•  project and contract management; and

•  accounting issues.

The NSW guidelines reflect the following principles:

•  A competitive and transparent process to provide a fair opportunity for all prospective private sector participants.

•  No direct negotiations with a single proponent unless approved by the Budget Committee of Cabinet (BCC) whose decision will be made public.

•  The Government will not guarantee private sector borrowings nor take an equity share-holding.

•  Scope for Government to contribute land, capital works or revenue diversion.

•  Disclosure of information on contracts and tenders in line with the Government's policy on the disclosure of information on Government contracts with the private sector.

•  Delivery of services consistent with agreements and undertakings under the National Reform Agenda.

•  Comply with the obligations under the Environmental Planning and Assessment Act 1979 (EP&A Act).

•  Fair treatment of public employees who may transfer to a private employer as part of a PPP.

•  Encourage maximum Australian and New Zealand industry participation.

•  Consider reimbursing bidders' reasonable bidding costs if a project is prematurely terminated for reasons unrelated to any commercial or technical aspect after the call for detailed proposals.

•  Apply the NSW Guidelines in a professional, fair, equitable and open manner, ensuring probity and minimisation of tendering costs.

PPPs require careful consideration and the BCC will review and progressively approve projects at each development phase, consistent with the national guidelines. An agency must receive the Treasurer's approval under the Public Authorities Financial Arrangements Act 1987 (PAFA Act) to enter a PPP.