5  Project need, funding and Procurement Strategy

Mandatory minimum requirements:

•  A public infrastructure project with a total estimated capital value exceeding $200 million, must be assessed for possible PPP procurement.

•  The Business Case and Procurement Strategy must be completed prior to seeking Cabinet approval for the Final Investment Decision.

•  A preliminary Public Sector Comparator (PSC) and a Shadow Bid Model (SBM) must be developed during the Business Case and Procurement Strategy phases unless otherwise agreed with NSW Treasury.

•  Responsible Agencies must consult with NSW Treasury on the approach to the Public Sector Comparator to assess the PPP project's value for money.

•  The Responsible Agency must consult with NSW Treasury in relation to the risk-free rate to be used in a PSC.

•  A Public Interest Evaluation (see Appendix 1) must be completed and submitted for Cabinet consideration prior to engaging with the private sector.

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