4.  PPP as a procurement option

All public infrastructure projects with a capital investment component of at minimum $50 million are required to be evaluated for a PPP as a potential procurement approach. In undertaking this evaluation, consideration will be given to value for money drivers and market appetite and capacity. Projects with a capital value of less than $50 million may be considered for PPP delivery if whole of life costs are expected to exceed $50 million. The capital threshold may also be triggered by bundling projects together.

The procurement options analysis is to be undertaken in accordance with the National PPP Guidelines Procurement Options Analysis and other Northern Territory Government procurement policies applying from time to time.

A key factor affecting the Northern Territory in considering PPPs as a procurement approach is the Territory's small population base and geographic isolation. These factors potentially result in the requirement to consider a range of different PPP drivers and impacts in the Northern Territory context.

Economic infrastructure, for example, could be especially difficult to sustain for remote regions with large, highly dispersed Indigenous populations. On this basis, principles which would apply for social infrastructure may need to be applied to economic infrastructure depending on the allocation of demand and price risk.