5.  PPP Project Governance

Each PPP project in Victoria will have Ministerial oversight of project delivery and implementation. A designated Portfolio Minister will have responsibility for delivering the PPP project and/or ongoing ownership of the project with responsibility for management and implementation once the procurement process is complete.

Procuring Agencies are responsible and accountable for delivering the PPP project and securing the desired outputs and outcomes. Procuring Agencies must secure the required Government approvals, establish a procurement team and governance framework, manage key stakeholders and deliver the project consistent with broader Government policies and objectives. The Procurement Team is led by a Project Director who should be appropriately skilled and resourced.

DTF is the Relevant PPP Authority as defined in the National PPP Guidelines. DTF is not responsible for direct project delivery but has a broader quality assurance and advisory role. DTF has whole of government responsibility for:

- maintaining and ensuring Procuring Agencies consistently apply the Partnerships Victoria Framework;

- supporting and reviewing Partnerships Victoria projects, including providing advice to Government at key project approvals; and

- monitoring and independently advising the Treasurer and Cabinet on significant PPP issues.

Strong governance arrangements are integral to successful PPP project delivery. DTF must be appropriately consulted in development of governance arrangements and participate at all levels of the governance framework. At a minimum:

- High Value High Risk (HVHR) projects must report to Government through the Major Project Performance Report. DTF will actively monitor project risks through the HVHR Assurance Committee;

- senior representatives of DTF and the Department of Premier and Cabinet must be members of the PPP Project Steering Committee. DTF must also be represented at the project working group level;

- Procuring Agencies remain responsible for key project appointments. Procuring Agencies must consult with DTF on key appointments such as Project Directors, Commercial/ Transaction Managers and project advisers; and

- the Project Director must provide signoffs to DTF at key milestones and also obtain signoffs from key advisers at each stage of the procurement process to give greater confidence that key risks are understood and managed, and to give greater confidence about the reliability of the PSC and other project delivery outputs. DTF will provide advice to Procuring Agencies on the required form and content of these signoffs.

Consultation must occur with DTF to agree any variations to the standard commercial principles /risk allocation or precedent contractual documents during the tender process and once contracted, including any significant contract variations or modifications and any disputes.

Procuring Agencies must also specifically consult DTF in relation to budgeting, accounting and taxation matters on PPP projects.

PPP projects will be subject to gateway reviews (except for Gate 4) in accordance with the Gateway Review Process www.gatewayreview.dtf.vic.gov.au/.

Procuring Agencies should also consider further assistance available from:

- the Victorian Government Architect in relation to design matters in the project development phase and ongoing tender phase of PPP projects. Further information is available at The Office of the Victorian Government Architect http://www.ovga.vic.gov.au/; and

- the Victorian Construction Code Compliance Unit in accordance with the Implementation Guidelines to the Victorian Code of Practice for the Building and Construction Industry. Further information is available at www.dtf.vic.gov.au/viccode.

The Auditor-General will have full and complete access as required to information on any Victorian PPP project.