For some Availability PPP Projects, the State may propose incentive payments which are contingent on Project Co achieving specified outcomes. These outcomes would be in addition to the availability of the Project Asset and the delivery of required outputs. For example, a payment-by-results arrangement for improving rates of recidivism in a fully outsourced prison PPP project.
Incentive payments should be closely linked to measurable and demonstrable outcomes - achieving those outcomes indicate realisation of tangible benefits to a wider network of users or to the wider community, and for which the State is willing to pay. They will need to be determined on a project specific basis and agreed with DTF.