Alternative 3

In some particularly complex and very large projects, the government may establish a separate legal entity to provide the required external project governance. The key advantages of this approach include:

the Owner is able to focus on its existing core business without becoming overwhelmed by the project;

providing the necessary strategic focus of a senior group who are removed from the pressures of day-to-day management; and

providing the project with the appropriate balance of independence and controls in relation to the speedy decision making required to facilitate an effective alliance.

The role of the special purpose legal entity (e.g., a department may establish a statutory authority to govern its major alliance) is to assume the role of the Owner.

This alternative can be illustrated as follows: