Unlocking innovation with new service delivery models

A key challenge for governments is how to fund social infrastructure expansion so it always meets community expectations.

They need to identify and expand innovative procurement models that support shared access to assets and leverage private sector funding.

Innovative practices include collaborative contracting, and establishing panels of qualified contractors, to enable longer-term private sector investment in capability development.

In particular, partnerships that access private capital and work across the not-for-profit and private sectors will greatly expand available infrastructure funding options.

Public Private Partnerships (PPPs) are a non-traditional but proven way to deliver school facilities that are designed to be shared with the local community.

The 2015 Victorian Schools PPP is one successful example. It provided community-use assets in each school, including gyms, ovals, early learning centres and commercial kitchens (for after-hours VET sector teaching use).

As well as benefiting the community, this arrangement provided a 4.6% saving for the Victorian Government on conventional service delivery.68

" Partnerships that access private capital and work across the not-for- profit and private sectors will greatly expand available infrastructure funding options. "

Other examples include innovative contracts for Justice facilities that deliver social outcomes as part of financial incentives.69

By adopting these innovative funding models, government investments can deliver both economic and social returns.