2.23.1  General principle

Social Infrastructure Availability PPP Projects typically involve the procurement and installation of large amounts of Equipment.

On Social Infrastructure Availability PPP Projects, Equipment is typically divided into groups. The grouping of Equipment is determined on the basis of whether there is a difference in allocation of activities as between the State and Project Co for the selection, procurement, installation, maintenance or ownership of the Equipment. For every difference in allocation, there is a new group or subgroup.

The Equipment List setting out the Equipment to be procured for the Project is included by the State in the RFP and is divided into the groups identified by the State. 

Set out below are the groups of Equipment set out in the SIPD and, as between the State and Project Co, who owns the entitlement and who is responsible for the selection, procurement, installation and maintenance.

The drafting in the table above has been based on the approach typically used in hospital projects where the Equipment regime is often complex. However, different projects will have different Equipment requirements and groups should be determined on a project specific basis.

The SIPD provides that the Equipment List for Group 1 Equipment and Group 2 Equipment is indicative only. This is because the period of time between the date the Equipment List is created and updated (during the RFP Phase) and the time when the Equipment is actually procured, may mean that the Equipment in the Equipment List is superseded by a superior product. Nevertheless, the Equipment List sets a baseline for the standard and quality of Group 1 Equipment and Group 2 Equipment to be procured by Project Co. The effect of this is that Project Co cannot procure Equipment inferior to or in lesser quantities than specified in the Equipment List. However, Project Co is required to procure Equipment which exceeds the baseline in the Equipment List if this is necessary to meet the requirements of the Project Deed (such as the FFP Warranty) and must do so at its own cost. 

The rationale for this is that:

•  the State pays for the minimum standards and quantities reflected in the Equipment List;

•  Project Co should be incentivised to accurately reflect the Equipment required for the Maintained Asset in its Proposal in order to limit the State's exposure to additional claims for changes to the Equipment List after Financial Close.

Project Deeds for Linear Infrastructure Availability PPP Projects may include an Equipment regime where there is a significant amount of specialised Equipment in respect of which the State wants to be involved in procurement or otherwise regulate procurement and replacement.