Phases

Actions

1. PPP Project Planning and Definition

Once Cabinet has approved project funding and PPP procurement, the procuring agency should:

•   update the business case, including economic and financial appraisals;

•   determine project scope and management plan, including:

-   related services to be privately provided,

-   risk allocation matrix,

-   timetable for procurement showing key milestones, and

-   probity plan;

•   update the Public Interest Evaluation (section 4.1.1);

•   develop a preliminary PSC (section 4.1.4);

•   develop a preliminary Fiscal Impact Analysis (See Annexures);

•   prepare an estimate of contingent liabilities upon the Consolidated Fund;

•   prepare a preliminary accounting treatment and taxation opinion;

•   conduct a preliminary environmental and development planning assessment and consultation (section 3.7)

•   establish a complete project team and Project Steering Committee (section 4.1.2);

•   perform market soundings, in consultation with NSW Treasury (if appropriate); and

•   prepare EOI documentation.

ERC approval: Required to proceed with release of EOI tender documentation.

ERC submissions must disclose any known probity, policy or other issues likely to impact on the tendering or evaluation processes.

2. Expression of Interest

An Evaluation Panel, coordinated by the project manager and overseen by the Project Steering Committee, will evaluate the EOIs. Shortlisted bidders (normally about three bidders) would be invited to submit detailed proposals.

After EOI Evaluation, the following should also be completed:

•   RFP documentation and evaluation plan;

•   contracts to issue with the RFP; and

•   Updated:

-   Public Interest Evaluation,

-   risk allocation matrix,

-   probity plan (if required), and

-   the PSC based on RFP documentation.

The Auditor-General should be advised of the form of the contractual arrangement to be included in the RFP and the likely accounting treatment for the transaction.

ERC approval: Agencies should consult NSW Treasury to determine if ERC approval is required.

3. Request for Detailed Proposals

The procuring agency may proceed to issue the RFP to shortlisted bidders after gaining any required ERC approvals.

The Evaluation Panel will assess submissions by shortlisted bidders and recommend a preferred bidder. If no satisfactory bid is received, the process may be terminated, or if the Steering Committee believe a value for money solution can be obtained, a Best and Final Offer (BAFO) process or pre-selection (structured) negotiations may be conducted to select a preferred bidder.

Prior to obtaining Cabinet approval for entering into negotiations or pre-selection negotiations with a preferred bidder(s), the following need to be completed:

•   'negotiation parameters' (See Annexures);

•   updated:

-   Public Interest Evaluation,

-   business case (including economic and financial appraisals),

-   risk allocation matrix and management plan,

-   Fiscal Impact Analysis (See Annexures),

-   probity plan (as required), and

-   accounting treatment and taxation opinion.

ERC approval: required before entering into contract negotiations or pre-selection negotiations based on prescribed 'negotiation parameters' with preferred bidder(s).

4. Negotiations and Contract Finalisation

Negotiations with the preferred bidder will be based on updated documents listed in Phase 3 (above).

Any updated statement of accounting treatment must be submitted to NSW Treasury after negotiations have been finalised. Before the contract is executed, the agency should obtain a NSW Treasury agreed determination on the accounting treatment and should advise the Auditor General of the proposed accounting treatment.

The terms of contract, and accounting treatment and taxation opinion should be finalised prior to seeking final Cabinet approval to sign the contract.

Selection of preferred bidder - not to be made public until after Cabinet approval.

Stated Owned Corporations: may need to obtain the written approval of shareholding Ministers under section 20X of the SOC Act (section 3.5)

ERC approval: required prior to the Portfolio Minister (or delegate) signing any contract, if significant variations arise in negotiations.

Treasurer's approval: under the PAFA Act for agencies to enter into a joint financing arrangement. This will be a condition precedent for any PPP contract to become effective.

Project Execution, Disclosure and Implementation

5. Project Execution, Disclosure & Implementation

After contract signing, management of the project will normally be transferred to an implementation team and ultimately to ongoing agency service delivery arrangements to manage the execution and implementation of the contract.

This may be overseen by the Project Steering Committee and/or Infrastructure NSW (where a project implementation plan exists 5 ).