Consistent with TC15-16: Managing PPP Contracts and the Treasurer's approval to enter a Joint Financing Arrangement (refer section 3.5), NSW Treasury is to be consulted as the Responsible Agency becomes aware of a likely or proposed material contractual or commercial (risk allocation) change to an existing PPP contract and prior to agreeing or negotiating such changes. This includes the refinancing of any private sector debt (except for a no consent refinance arrangement), or a change in control of a key or private sector party (refer also to chapter 7).
The Responsible Agency and Minister is required to obtain Cabinet approval prior to renegotiating any significant elements (or material variations) of a PPP contract.
Renegotiation of proposed significant variations of a PPP contract, particularly where there is a significant budget, risk or impact on the State's actual or contingent liabilities, are likely to also require Cabinet/Ministerial approvals. NSW Treasury, in consultation with Department of Premier and Cabinet, will determine whether it would be appropriate to seek the approval of the Treasurer, portfolio Minister and/or Cabinet.