3.8 Economic and social infrastructure
Governments are typically involved in the provision of economic and social infrastructure, either as a procurer or facilitator. The main differences between the two types of infrastructure are outlined in the Table 3-1.
Table 3-1 Differences between Economic and Social Infrastructure
Economic Infrastructure | Social Infrastructure |
Revenue is sourced by the sale of goods or services directly to users, subject of market based resource allocations | Revenue is derived from government, net of any third party revenue, subject to Government resource allocation decisions |
Provider faces significant market risk | Limited market risk to provider, payment streams are mainly derived from government |
Infrastructure and services are usually delivered through a Government Business Enterprise (GBE) in line with national Competition Policy | Infrastructure and services are usually delivered through a government agency |
Revenue risks are a key driver of financial outcome | Cost risks are a key driver of financial outcomes |
The PSC should be developed on a basis that is consistent with the nature of the proposed project.
Most issues within this document are applicable to both economic and social infrastructure projects.