15 May 2017

National PPP Policy Framework

Written by Department of Infrastructure and Regional Development, Australia
15 May 2017

This National PPP Policy (Policy) provides a consistent framework that enables public and private sectors to work together to improve public service delivery through private sector provision of public infrastructure and related services.

The objectives of the National PPP Policy Framework are to:

  1. encourage private sector investment in public infrastructure and related services where value for money for government can be clearly demonstrated;
  2. encourage innovation in the provision of infrastructure and related service delivery;
  3. ensure rigorous governance over the selection of projects for PPPs and the competition for and awarding of contracts;
  4. facilitate a consistent and streamlined approach to procuring PPPs across Australia;
  5. be sufficiently flexible to respond to strategic priorities, project specific requirements and market conditions; and
  6. clearly articulate and measure accountability for risk and outcomes adopting a partnership approach to managing long-term PPP contracts.

A key factor in successful procurement of infrastructure and associated services is that it is preceded by an integrated approach to strategic infrastructure planning and robust frameworks for decisions to invest in infrastructure, including the use of project evaluation methodologies such as rigorous cost benefit analysis.

The changes to the National PPP Policy and Guidelines focus on assessing modified financing options, improving procurement, maintaining and optimising effective risk allocation, and ensuring effective monitoring of long term performance based contracts.

Publication Date: 10.2015