Andrew Barr has announced he’s going to use Public Private Partnerships to fund his grand plans:
The Government has released a new procurement framework to help engage the private sector to help deliver major infrastructure projects. These performance driven contracts will help ensure major projects are completed on time and on budget.
PPPs typically include a capital component and an ongoing service delivery component. They generally involve high levels of risk transfer to the private sector and high levels of integrated delivery including design, construction, maintenance, operations, and private sector financing.
It is anticipated that this approach will help stimulate the local economy and encourage jobs growth by facilitating the delivery of large scale projects across the Territory.
Attorney General Simon Corbell and I are pleased to announce that the redevelopment of the Supreme Court will be the first major infrastructure project delivered under the new PPP framework. Other projects being considered include Capital Metro, the ‘City to the Lake’ project, and the University of Canberra Public Hospital.
Estimated cost savings of 11.4%, on average, can be made under a PPP compared to traditional procurementmethods.
Using the PPP model also helps ensure facilities are well maintained and efficiently operated under long-term commitments between the government and private sector.
It’s those “long-term commitments” that are going to bring the corporations the returns they want.