Appendix A: Glossary
Term | Meaning |
Best and final offer; as part of the RFP phase, this is a further short listing process to determine a preferred bidder | |
Build, own, operate and transfer | |
The document that articulates the rationale for undertaking an investment | |
The competitive advantages that accrue to a government business by virtue of its public sector ownership | |
Arises where a member of a project team, or an adviser to a project team has an affiliation or interest which might be seen to prejudice their impartiality | |
Those private party persons who together intend to deliver a PPP | |
Those persons who, together with other persons, make up a consortium | |
The document that is released to the public following financial close that sets out the key aspects of the project, including contract terms | |
For social infrastructure, this refers to those services for which governments have particular responsibilities to people using the service and the community (e.g. hospitals, schools, etc.). Services included in this definition will be determined on a case-by-case basis | |
Design and construct | |
Design, build, finance and maintain | |
Design, build, finance, operate | |
Design, build, operation, maintain | |
Design, construct and maintain | |
The rate used to calculate the present value of future cash flows, usually determined on the basis of the cost of capital used to fund the investment from which the cash flow is expected | |
Means expressions of interest for a project | |
The phase used to shortlist parties to proceed to the RFP phase who are capable of delivering the project | |
The parties submitting a response to an Invitation for EOI issued by government for a project | |
The responses from the market to the Invitation for EOI issued by government for a project | |
Ecologically sustainable development | |
These National PPP Guidelines | |
Inventions, original designs and practical applications of good ideas protected by statute law through copyright, patents, registered designs, circuit layout rights and trademarks; also trade secrets, proprietary know-how and other confidential information protected against unlawful disclosure by common law and through additional contractual obligations such as confidentiality agreements | |
The process of interaction between shortlisted bidders and key stakeholders during the RFP phase as outlined in the Practitioners' Guide | |
An invitation to the market to seek expressions of interest for a project | |
The set of specific guidance applicable to individual jurisdictions that are to be read in conjunction with the Guidelines | |
Those principles of the Guidelines that set out the considered position of government across jurisdictions in relation to risk allocations under a PPP. This is set out in National Commercial Principles for Social Infrastructure. | |
The suite of guidance material that will form the national guidance on PPPs | |
The document that will detail the scope and application of the National PPP Guidelines across governments in all jurisdictions | |
The phase involving negotiations with the preferred bidder and finalisation and completion of contractual agreements | |
Net present cost | |
The document that defines the outputs and performance levels in relation to construction and services for the project and incorporates those aspects as identified in the Practitioners' Guide | |
A public private partnership | |
A shortlisted bidder selected following the RFP 'Evaluation' phase as preferred and to proceed to the negotiation and competition phase | |
An independent expert retained to monitor the bidding process at critical stages, assessing and reporting whether the process has been conducted to the required standards of probity | |
The document that outlines the rationale for adopting various procurement methods for a particular project | |
The government body (department, agency, statutory body or GBE) that is responsible for delivering the project on behalf of government | |
The person with overall responsibility for delivery of the project and management of all members of the project team | |
The committee of departmental/agency representatives established by the procuring agency to direct the development of the PPP project and deal with key issues | |
The group of specialists and departmental/agency representatives, established by the procuring agency, that is responsible for assisting the project director to deliver the project (including developing project documentation and undertaking evaluation processes) | |
The public sector comparator for a project, which is defined in the Guidelines as the hypothetical, risk-adjusted whole-of-life cost of a public sector project if delivered by government | |
The base cost to government of producing and delivering the reference project (with no adjustment for risk) | |
The basis for calculating the PSC, reflecting government delivery of the project by traditional means | |
The government department or agency responsible for the application of PPP policy within a jurisdiction (often Treasuries) | |
The value of those risks or parts of a risk that government bears under a PPP project | |
A request for proposal issued by government for a project | |
The part of the RFP phase where shortlisted bidders are preparing RFP responses | |
The part of the RFP phase where government is preparing RFP documentation for release to shortlisted bidders | |
The part of the RFP phase where government is evaluating RFP responses | |
The phase involving the release of the RFP to shortlisted bidders for detailed, fully costed and binding RFP responses, followed by evaluation and selection of the preferred bidder | |
A proposal from a shortlisted bidder in response to the RFP issued by government for a project | |
The allocation of responsibility for dealing with the consequences of each risk to one of the parties to the contract; or alternatively, agreeing to deal with a particular risk through a specified mechanism which may involve sharing that risk | |
Those parties invited to submit a proposal in response to an RFP issued by government for a project | |
In establishing a project consortium, the sponsor or sponsors typically establish the private party in the form of a special purpose vehicle (SPV) which contracts with government. The SPV is an entity created to act as the legal manifestation of a project consortium | |
Includes each of the following phases:
| |
The delivery of the infrastructure and associated services by government using a design and construct procurement processes | |
The value of those risks (from government's perspective) that are likely to be allocated to the private party under a PPP project | |
The integration of up-front design and construction with ongoing maintenance and refurbishment elements over the life of the asset under the PPP arrangement |
