4.  PPP as a procurement option

Projects with a capital value greater than $50 million have the potential scale to provide value-for-money. Projects with this scale and where other value drivers are present should evaluate PPP as a project delivery method. The capital threshold may also be triggered by bundling projects together.

The procurement options analysis is to be done in accordance with the national PPP guidelines Procurement Options Analysis. PPPs must be affordable and not compromise the Government's financial targets. Therefore government will proceed with a PPP project only if it is fully funded and therefore capable of being resourced through public sources associated with traditional procurement methods.

Proposed PPP projects must also comply with DTF's Strategic Asset Management Framework for Western Australian Public Sector Agencies, in particular the preparation of robust business cases and project definition plans.