As stated above, PPPs are likely to meet the definition of a financial arrangement as defined in section 6.7 of the GSF Act. In all cases a JVA and in most other cases a JFA, defined in sections 6.11 and 6.12 respectively of the GSF Act.
Accordingly, before the Responsible Agency enters into PPP contract documents, the Treasurer's written approval is likely to be required under section 6.23 of the GSF Act upon the recommendation of the Responsible Minister for joint financing arrangements. The recommendation from the Minister (section 6.23(3)) and approval from the Treasurer (sections 6.22(1), 6.22(2) and 6.23(1)) are statutory requirements. Under section 6.23(5) of the GSF Act, an approval given for a JFA that is (or forms part of) a JVA also operates as an approval for the JVA (but not vice versa), unless the approval provides differently. However, a JFA approval does not cover other financial arrangements which requires a separate approval (e.g. investments or derivatives).
Prior to the Treasurer approving the entry by the Responsible Agency into a financial arrangement, Responsible Agencies should contact NSW Treasury for template copies of the Minister's recommendation letter.
Responsible Agencies must engage with NSW Treasury as early as possible once a procurement pathway has been determined. NSW Treasury can assist in identifying whether and when GSF Act approvals may be required.
Prior to the Treasurer approving the entry by the Responsible Agency into a financial arrangement, the Responsible Agency must provide the Treasurer (and NSW Treasury) with a copy of:
• a summary of the project, the project deed and supporting documents
• a summary of the major risks to the State under the project and how these have been addressed; and
• final accounting and FIS Table, signed off by the CFO of the Responsible Agency.
Responsible Agencies must plan to allow sufficient time to obtain a signed letter from their Minister, and for the Treasurer to consider the Minister's letter and the project and supporting documents and respond, taking into account target dates for contractual and financial close. To assist with this planning, Responsible Agencies should contact NSW Treasury as early as possible in the procurement process.