Future directions for public private partnerships


Current project: The Treasurer has announced a set of reforms that will guide the next phase of public private partnerships investment in Victoria.

The reforms are outlined in a revised Partnerships Victoria Requirements document released by the Treasurer in May 2013.

Government has been responsive to industry and practitioner feedback in formulating the final reform package. The reforms include:

  • Government will take the opportunity to expand the scope of services provided by the private sector associated with new or upgraded infrastructure. The Ravenhall Prison Project will include custodial services provided by the private sector.
  • A streamlined approach for small-scale projects which currently lack the scale required to attract private sector interest will be tested via a simplified public private partnership (PPP) model. The key PPP commercial principles can be applied to smaller investments or a bundle of projects.
  • Value for money will continue to be tested via a robust Public Sector Comparator benchmark. The assumed alternative procurement option will be removed and where appropriate the comparator will be an affordability benchmark with a scope ladder.
  • Modified financing structures will be examined for the right projects consistent with recent experiences with state capital contributions for PPP projects in Victoria and other jurisdictions.
  • There will be action to reduce bid costs, build capability in government and reinforce that the appropriate security and parent company guarantees are in place in PPP contracts.

We are currently developing guidelines to support implementing the reforms.


A consultation paper was released on 28 November 2012 detailing proposed reforms for public comment - see related publications.

The Government received 35 submissions from a range of parties including industry associations, builders, financiers, service providers and advisers. Overall there was strong support for the direction of reform.

For more information contact PPPs@dtf.vic.gov.au