Term | Meaning |
A respondent to an EOI request or an invitation to submit a bid in response to a RFP. Typically a bidder will be a consortium of parties, each responsible for a specific element, such as constructing the infrastructure, supplying the equipment, or operating the business. |
The document that articulates the rationale for undertaking an investment. In NSW, the business case should be prepared in accordance with Treasury Policy and Guidelines Paper TPP08-5 Guidelines for Capital Business Cases. |
A generic term for an asset. Capital sometimes refers to financial investments and at other times to physical capital, such as land and buildings, earthworks, machinery and vehicles. |
Certain conditions that are required to be satisfied prior to the majority of the project agreement becoming effective. |
Those private party entities who together intend to deliver a PPP. |
The date when contracts are executed. |
The rate used to calculate the present value of future cash flows, usually determined on the basis of the cost of capital used to fund the investment from which the cash flow is expected. |
The Committee or Board of departmental/agency representatives, chaired by the Responsible Agency and including NSW Treasury, responsible for overseeing the delivery (construction), operations and eventual handback of the PPP project to Government. |
A PPP where the private party derives revenue from third parties (e.g. user charges) and therefore takes on the demand risk. Typical examples of economic infrastructure are networks of roads and telecommunications facilities, airports, ports, water storage and sewerage, railways, electric power generation and distribution facilities. |
The tender phase used to shortlist bidders to proceed to submit more detailed proposals. |
The date of satisfaction of the last Condition Precedent is known as Financial Close. Whilst a contract is binding once signed, a contract only becomes completely effective at Financial Close. |
Inventions, original designs and practical applications of good ideas protected by statute law through copyright, patents, registered designs, circuit layout rights and trademarks; trade secrets, proprietary know-how and other confidential information protected against unlawful disclosure by common law and through additional contractual obligations such as Confidentiality Agreements. |
The process of conducting workshops and consultations with short-listed bidders and the project team, generally during the RFP phase. |
The suite of guidance (Policy Overview and Volumes of Detailed Guidance) that form the national guidance on PPPs. See: https://infrastructure.gov.au/infrastructure/ngpd/index.aspx |
A short-listed bidder selected following the RFP evaluation to proceed to the negotiation and completion phase. |
Uprightness, honesty, proper and ethical conduct and propriety in dealings. |
An independent expert retained to monitor the procurement process at critical stages, assessing and reporting whether the process has been conducted to the required standards of probity. |
The person engaged by the Responsible Agency with overall accountability for procuring and/or managing the project during delivery and operations. The procuring Project Director may differ to the delivery and operations Project Director. |
The Committee or Board of departmental/agency representatives, chaired by the Responsible Agency and including NSW Treasury, established by the Responsible Agency and/or Cabinet to oversee the procurement of the PPP project and deal with key issues. |
The document that is released to the public following the contract becoming effective that sets out the key aspects of the project, including key contract terms. |
The group of specialists and departmental/agency representatives, established by the Responsible Agency, that is responsible for assisting the Project Director to deliver the project (including developing project documentation and undertaking evaluation processes). |
See Bidder. |
A long-term arrangement between the public and private sector for the delivery of service enabling public infrastructure, including Social Infrastructure PPPs, Economic Infrastructure PPPs, joint financing arrangements and concession agreements. |
An estimate of the net present value of a project's whole of life costs and revenues using the most efficient and likely form of Government delivery. |
The basis for calculating the PSC, reflecting Government delivery of the project by traditional means. |
The tender phase involving the release of the RFP to short-listed bidders for detailed, fully costed RFP responses, followed by evaluation and selection of the preferred bidder. |
The Government agency that is responsible for procuring and/or delivering and managing the project during construction and operations. The procuring Responsible Agency may differ to the delivery and operations Responsible Agency. |
The value of those risks or parts of a risk that Government bears under a PPP project. |
The allocation of responsibility for dealing with the consequences for each risk to one of the parties to the contract; or alternatively, agreeing to deal with a particular risk through a specified mechanism which may involve sharing that risk. |
A PPP Shadow Bid Model is the Responsible Agency's best estimate of a private party bid price (in net present value/cost terms) to deliver the output specification under a PPP project structure. The SBM should reflect a private party's costs and debt and equity structure, and the Project Deed terms (including the payment mechanism). The SBM is dynamic and should be updated as new information is received but should be finalised prior to or soon after the RFP release. |
Bidders selected as part of the EOI evaluation to be invited to submit a proposal in response to an RFP issued by Government for a project. |
A PPP where the government pays the private party a service fee for the availability of a facility/social infrastructure. Examples of social infrastructure include hospitals, schools, police stations, prisons, transport and road projects involving availability payments. |
An entity created to act as the legal manifestation of a project consortium. In establishing a project consortium, the sponsor or sponsors typically establish the private party in the form of a SPV which contracts with Government. |
See Project Steering Committee or Project Board, or Delivery Steering Committee or Board. |
The process of inviting the market to submit bids against a particular project and includes the EOI, RFP and negotiation phases. |
Please refer to the NSW Government's Unsolicited Proposals Guide for Submission and Assessment. |