Social Infrastructure Projects

Social infrastructure projects are projects where the government retains demand risk traditionally through an availability based payment mechanism and the private party is paid a service fee by the government for the availability of a facility. This differs from economic infrastructure projects where the private party bears demand risk and revenues are often derived from third parties. Examples of social infrastructure projects include schools, prisons and hospitals.

Refer to the National PPP Guidelines: Volume 2 - National Commercial Principles for Social Infrastructure ("NCPs for Social Infrastructure") for equivalent national commercial principles applicable to social infrastructure projects.

Government also recognises that individual projects may have characteristics of both economic and social infrastructure projects. Such projects will need to be considered on a project specific basis with reference to these NCPs for Economic Infrastructure and the NCPs for Social Infrastructure, as appropriate for the characteristics and risks of the individual project.