The NSW PPP Guidelines state that:
• The agency is required to obtain Cabinet approval prior to renegotiating any significant areas of a PPP contract; and
• "where the agency wishes to renegotiate or amend any element of a previously signed PPP, the agency is required to consult with NSW Treasury prior to commencing negotiations. Treasury will determine whether it would be appropriate to seek the approval of the Treasurer or Cabinet".
The ISFU is responsible for ensuring and monitoring that:
• Any changes to risk allocation under existing PPP and other complex infrastructure contracts do not create undesirable precedents, are value for money and are consistent, as much as possible, with the ISFU standard Project Deed for social infrastructure (where relevant)
• The Treasurer is informed of any material changes to the approved joint financing arrangement and any Government PAFA Act Guarantee of the government entity obligations under the arrangement
• Any State Budget and Accounting impacts of PPP contracts are accurate and up to date
• Consistent application of current PPP policies across projects
• Compliance with the NSW PPP Guidelines.
In evaluating proposed material contractual or commercial changes, the ISFU can draw on its considerable experience and expertise across a wide range of PPP projects and:
• provide expert commercial and financial advice, whilst avoiding setting undesirable precedents
• assist in resolving disputes prior to them escalating
• assist in retaining external experts if appropriate
• advise on approval process and the application of NSW PPP policies.
The ISFU can provide commercial and financial advice and aid negotiations to assist the government entity with achieving value for money and maintaining an appropriate project risk allocation. If the specific situation warrants it, the ISFU may be able to refer the government entity to a suitable external adviser.