The 2022 version of these Guidelines includes the following key updates:
1. Updated references to the forms of PPP based on revenue stream to the private sector (section 1.1.1).
2. The threshold for mandatory consideration of PPP procurement has increased from $100 million to $200 million estimated capital value (section 1.1.4).
3. References and guidance on the application of the Government Sector Finance Act 2018 (NSW) (GSF Act), previously the Public Authorities Financial Arrangements Act 1987 (NSW) (section 4.5).
4. Guidance on materially varying an existing PPP with an incumbent Project Company (or part thereof) as part of an augmentation process (section 4.7.2.2).
5. Commentary on the Public Sector Comparator (PSC) and Shadow Bid Model (section 5.2).
6. Guidance on the disclosure of the Public Sector Comparator (section 6.5.2).
7. Guidance on Principal Arranged Insurance (PAI) (section 6.5.5.2).
Additionally, Responsible Agencies should note the following:
8. Updated guidance on the Governance Framework and required inclusions, such as details of the governance structure, terms of reference for the Steering Committee and Project Control Group, governance arrangements, review process, and change thresholds (section 3.3).
9. Combining the requirement to seek Government approval of the investment decision with the approval of the Procurement Strategy, which should include a procurement options analysis within the Final Business Case prior to seeking Cabinet or Budget approval (section 5.1).
10. Further guidance on procurement risk and uncertainty with respect to financial risks and emerging risks (such as climate related events), and more explicit references to these emerging risks in the evaluation of projects (sections 5.1.2 and 6.5.5.1).
11. Updated guidance on the calculation of the PSC in recognition of PPPs becoming more bespoke and thereby requiring a more nuanced approach to ensure the PSC provides an appropriate measure of value for money (section 5.3).
12. Expanded commentary on the public interest evaluation test (section 5.6).
13. The Contract Management section has been expanded and adjusted to recognise the different aspects of contract management during the delivery (i.e. construction) and operations stages, and the importance of providing management and senior management knowledge continuity from the procurement stage though delivery and onto the operations stage. A new sub-section details the requirements for managing performance during the operations stage when promised services and outcomes are expected to be realised (section 7).
14. Further guidance on refinancing events, and key principles Responsible Agencies must follow if there is a refinancing gain (section 7.5.1).
15. A new section has been included to reflect the impact of new accounting standard Australian Accounting Standard Board (AASB) 1059 Service Concession Arrangements: Grantors on PPPs. This section also sets out the requirement for Responsible Agencies to develop budget models to understand the financial liability and budget impacts that arise over the life of Availability PPPs (section 8).
16. Further guidance material on the application of the GIPA Act to PPP projects (section 9).
17. A new section on innovation delivered through PPP projects to encourage thinking about what a Responsible Agency may introduce into the PPP structure to add value (section 10).
18. Addition of Appendix 3 as a non-exhaustive listing of relevant NSW Guidelines, Circulars and Policies.
19. Addition of Appendix 4 on the PPP Assessment Framework, which provides guidance to Agencies on whether a capital project is potentially suitable for a PPP. The form is provided in the Appendix via a link to the relevant page on the NSW Treasury PPP's website.
20. Addition of Appendix 5 on Managing Public Private Partnership (PPP) Contracts to incorporate the requirements of TC15-16 Managing Public Private Partnership (PPP) Contracts (which will no longer apply from the date of these Guidelines), and clarifies when and under what circumstances NSW Treasury must be consulted regarding likely or proposed commercial or contractual changes to PPP projects.