3.1  Scope of the National PPP Policy

The Policy requires jurisdictions to apply the National PPP Guidelines to the procurement of PPP projects, which are defined as being where:

■  the private sector provides public infrastructure and any related services; and

■  there is private investment or financing.

PPPs as a procurement method are part of a broader spectrum of contractual relationships between the public and private sectors to produce an asset and/or deliver a service. They are distinct from early contractor involvement, alliancing, managing contractor, traditional procurement (design & construct) and other procurement methods. This policy covers PPPs only. Other types of procurement are covered by other government guidelines.

Compared with other infrastructure delivery methods that are focused on design and construction, PPPs are typically complex given their lengthy contract periods involving long-term obligations and a sharing of risks and rewards between the private and public sectors.

The policy does not apply to the private provision of services for which there is no public infrastructure element (e.g. professional consulting services), nor does it refer to private investment in infrastructure across Australia where government does not have a direct interest in the provision of public services (e.g. a gas pipeline between states, or roads built from a mine to a port).