Table 8: Events requiring consultation with NSW Treasury lists some events that would require consultation with NSW Treasury. This list is non exhaustive (also refer to section 4 of these Guidelines).
Consultation should occur irrespective of whether the private party or the Government entity is initiating the event. Category A Events are those that are automatically considered material, whereas Category B Events only require consultation if they are material. For some projects, objective materiality thresholds may be defined in the project's protocol as agreed between NSW Treasury and the Government entity.
Table 8: Events requiring consultation with NSW Treasury
Category A Event | Primary Reason for consultation |
Waiver or change to a Condition Precedent (CP) or the timing of a CP affects timing and pre-conditions of financial close. | Affects timing and pre-conditions of financial close. |
Planning Approval Conditions, project timing (possibly including financial close), scope, affordability and risk exposure or allocation. | Project timing (possibly including financial close), scope, affordability and risk exposure or allocation. |
Change of ownership, control or financier, or major subcontractor. | Government consent, reputation risk, base case financial model implications, consistent treatment with any other affected PPP contracts. |
Refinance (non-vanilla where contractually specified) or new hedging arrangements. | Government consent, base case financial model implications, administration of refinancing gain share mechanisms. |
Default or termination. | Government reputation, risk to continuity of service delivery, Impact to State Finances. |
Step-in. | Government reputation, risk to continuity of service delivery, Impact to State Finances. |
Force Majeure. | Service continuity, Impact to State Finances. |
Benchmarking or market testing process. | Market knowledge and reputation, impact to Service Payments and Service Specification, possible flow-on effects to other contractual terms, Impact to State Finances. |
Satisfying the conditions of a Conditional Debt Pay Down, or other State contributions. | Impact to State finances, verification of Base Case Financial mode. |
Changes to the Base Case Financial Model. | Impact to State finances, possible impact on the calculation of termination payments. |
End-of-term arrangements, e.g. handover or extension. | Government consent, asset condition to ensure service continuity, Impact on State Finances. |
Delay in construction completion or operation commencement dates. | Impact to State finances, Government reputation in delivering infrastructure and services. |