5.8  Commercial Opportunities [#OPTIONAL.  DELETE IF NOT APPLICABLE TO PROJECT]

Guidance note: Where there are legal and practical difficulties of incorporating commercial opportunities into the Project asset (e.g. where the facility is a correctional facility), insert the following paragraph should be inserted:

"Notwithstanding the above, given the legal and practical difficulties of incorporating commercial opportunities into a [#insert Project asset, the State does not view commercial opportunities as a high priority for this Project."

This Section allows Respondents to propose commercial opportunities to the State provided any proposal is discussed with the State during the ITP Workshops and complies with a set of guiding principles.  Table 8 (Commercial Opportunities Guiding Principles) sets out example guiding principles but the guiding principles are to be developed by Procuring Agencies on a project-by-project basis.

This Section is currently drafted on the basis that Respondents will propose commercial opportunities as part of their Proposals.  However, where a project incorporates associated commercial development opportunities, this Section should be updated to reflect this.  Examples include integrated private medical suites, car parks, retail and food outlets.

In accordance with standard PPP practice, this RFP allows Respondents to consider and propose commercial opportunities to the State as part of their Proposals.  Any proposal should be discussed with the State during the ITP Workshops and would need to meet the Commercial Opportunities Guiding Principles set out in Table 8 (Commercial Opportunities Guiding Principles) below.

The State will not accept commercial opportunity proposals that are inconsistent with the Commercial Opportunities Guiding Principles.

Table 8: Commercial Opportunities Guiding Principles

Number

Principle

Principle 1

[Contribute to the State achieving the Project Objectives.]

Principle 2

[Enhance amenity for [in the case of a hospital project, "patients, staff and visitors" / in the case of a prison project, "prisoners, staff and visitors" in the case of a school project, "students, staff and visitors"]]

Principle 3

[Are not inconsistent with the PSDR].

Principle 4

[Deliver a financial benefit to the State and demonstrably achieve value for money after taking into account associated risks.]

Principle 5

[Do not compromise or increase the risk of the Project or limit the State's flexibility with respect to the Project.]