1.  Introduction

PPP projects will be procured under the Partnerships Victoria framework that requires compliance with both the:

•  new national PPP policy and guidelines; and

•  Victorian-specific requirements outlined in this document and its annexures.

The national PPP policy and guidelines have immediate effect and will apply to all Victorian PPP projects released to the market from January 2009. Where the national guidelines allow flexibility, the Victorian-specific requirements in this document and its annexures apply (see in particular Annexure One on commercial principles published on the Partnerships Victoria website).). Other Victorian whole-of-government policies such as the Asset Management Framework and Gateway Reviews continue to apply to Victorian PPP projects.

Under the national guidelines, there is a new policy requirement to consider PPP delivery as one of the procurement options when planning for any capital expenditure over $50 million. The national guidelines are consistent with the pre-existing Partnerships Victoria approach with the exception of the Discount Rate Methodology. While this changes the methodology for some projects, it is anticipated the outcome will not be materially different. 1

Figure One: Hierarchy of guidelines

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1 Under the previous Partnerships Victoria approach, special rules for discount rates applied to large and unusual projects, while general rules applied to all other projects. Under the National Guidelines, the special rules apply to all projects.