The operations stage is generally the period of the PPP project with the longest duration. It is the key period when delivery of the promised services and outcomes is expected to be realised.
During the operations stage the delivery Project Director and Committee generally focus on:
• monitoring the delivery of the contracted services, and realisation of the promised benefits
• monitoring and reporting on the condition and performance of assets delivered or maintained under the agreement
• compliance with the NSW Asset Management Policy for the NSW Public Sector (TPP 19-07)1
• Resolving any legacy issues
• maintaining relationships between the Responsible Agency and the Project Company's representative, and ensuring that the quality of management control meets contracted requirements
• ensuring there is no take-back of risk allocated to the Project Company
• reporting and monitoring of ongoing financial risk exposures in conjunction with NSW Treasury and TCorp
• as appropriate, managing payments, any application of abatements and budget requirements for the PPP (refer to section 8)
• maintaining and updating the Contract Management Plan
• collecting operational performance data
• managing communications between the parties and other stakeholders
• reporting to the Responsible Agency and NSW Treasury on delivery of the project's objectives
• managing any changes during the operations stage to output specifications, service levels, legislative and environmental changes
• managing any material changes to the PPP arrangements (refer to sections 7.4 and 7.5)
• training and succession planning; and
• ultimately, preparing for handback arrangements toward the end of the concession.
The Responsible Agency must ensure commitment to adequate resources during this stage.
The Committee should meet at least twice a year, or as otherwise agreed. Regular reporting of the project and contractor performance, and benefits realisation remains important.
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