The purpose of this Section 8.1.3 (Public Sector Comparator (PSC)) is to disclose the PSC and provide information regarding some key assumptions that underpin the PSC.
The PSC is the estimated, hypothetical, risk-adjusted cost if the Project were to be financed and implemented by the State.
The PSC is developed in accordance with Volume 2 (Project Scope and Delivery Requirements), the Services Specification, and the proposed risk allocation contained in Volume 3 (Draft State Project Documents).
The PSC comprises four elements:
• raw PSC - all capital and operating costs associated with building the [insert Project asset(s)] and delivering the Services over the Operating Phase under Volume 2 (Project Scope and Delivery Requirements) and to the performance parameters as required under the Draft State Project Documents;
• competitive neutrality - adjustments to remove any net competitive advantages or disadvantages that accrue to a government business by virtue of its public ownership;
• transferable risk - the value of risks expected to be transferred to the private sector under the Draft State Project Documents; and
• retained risk - the value of risks expected to be retained by the State under the Draft State Project Documents.