Report section

Guidance on content

Background and approval requirements

Information on the purpose of the report and a summary of any approvals being sought, including the timeframe in which any action is required.

Strategic performance and realisation of project benefits

Information on project outcomes and the realisation of the benefits of the project. 

The private party's financial position

Information on the private party's (and, where relevant, key sub-contractors') financial position and cash flows, in particular:

•  commentary on the most recent audited accounts; 

•  identification of any unexpected cash flows or transactions; and

•  identification of any implications for the government party, including:

-  any concerns as to the current or future solvency of the private party or any key subcontractor; and

-  impacts on any risk or revenue sharing by the government party, such as in projects in which the government party shares in additional revenues generated by the private party in excess of its base case revenues.

The private party's management of transferred risks:

Information on the private party's management of those risks which are transferred to the private party and for which there is a significant residual risk to the government party if specific risk management actions are not undertaken by the private party. Possible examples include the following: management of industrial relations issues or accreditation.

•  Compliance with the output specification and services specification:  Information on the contract director's program of monitoring the private party's compliance with the overall output specification and services specification, including any material non-compliances identified and corrective action taken.

•  Insurance: Confirmation that the private party has renewed its insurance policies in accordance with the contractual requirements, including information on any material changes in insurance coverage and, if the government party shares insurance premium risk, information on the cost (if any) to the government party and the steps taken by the contract director to verify that the costs reflect current market conditions.

•  Refinancing: If the private party will need to refinance its existing debt (typically because its existing debt finance is for a term significantly shorter than the term of the Partnerships Victoria project deed), information should be provided on steps that the private party is undertaking to ensure that it will be able to refinance within the required timeframe.

•  Accreditation/certification: If the private party (or a key subcontractor or employees of either of them) is required to maintain any accreditation or certification, information should be provided on the good standing of that accreditation or certification.

•  Asset lifecycle management and maintenance: Information on the contract director's program of monitoring the private party's asset lifecycle management and maintenance activities, including any identified non-performance and corrective action taken.

The private party's, and key subcontractors', organisational structure, and the quality of their management and operating personnel

Information on the private party's, and key subcontractors', organisational structure, and the quality of their management and operating personnel, particularly any changes that may create an increased risk of future non-performance.

Government's relationship with the private party

Information on the government party's relationship with the private party at the various levels (strategic, operational etc.), particularly any changes that may create an increased risk of future non-performance. Where relevant, information on relationships with sub-contractors and investors should also be included.

Consultation

Information on consultation with other parties in relation to the matters discussed in the report.

Recommendation

If required, a recommendation for action to be taken by senior management.