4.3.1  Determining PPP delivery

In choosing the most appropriate method of delivery, some of the key issues to be considered include:

•  determining core versus non-core services. Core services are those non-asset-related services which government has decided to retain responsibility for delivering. Outside these, a range of asset-related and other ancillary services will be associated with the project and may be considered for inclusion in the scope of the private sector;

•  value for money.  Whether private sector involvement is likely to deliver value for money.  The value for money drivers are used as the basis for this assessment;

•  analysis of market capability and appetite. Government requires reliable data on which to base a decision on whether to offer a project to the market as a PPP project, or to deliver it by traditional means. This decision, which is based on practical grounds, necessitates an examination of the issues of:

whether private parties have the capability to deliver the project and related services; and

whether they have the appetite, or motivation, to do so.

•  public interest. As with all infrastructure projects, this involves considering whether the proposed procurement approach is in the public interest. Each jurisdiction will have its own methods for considering public interest matters.