The NSW Government approval process and an overview of required documentation1 for each project phase is provided in Figure 4.1. Government PPP-related approvals are required at the investment decision stage to approve project funding (i.e. Final Business Case stage), including contingency and provision for foreign exchange, and the procurement approach. If a decision to select the PPP model for a project changes following an investment decision, that decision must be referred to Cabinet for approval.
Government approvals are also required for PPPs prior to:
• approaching the market with a formal EOI invitation, noting that an EOI may only be issued after project funding and the procurement method has been approved by Cabinet
• issuing an RFP to the market
• selecting a preferred proponent and executing the contract
• making material changes to key Commercial Principles, risks, State budget impacts, user fees (for example, tolls) and funding sources if these matters were previously approved by Cabinet
• terminating a procurement process
• making material changes after contract execution to commercial terms or contracts if certain material and costly risks materialise; and
• terminating any PPP contract.
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1 Detailed documentation requirements at each decision point are provided in sections 4, 5 and 6 of these Guidelines, and in the more detailed National PPP Guidelines.