The OECD Symposium on Agencies and Public Private Partnerships 6 th July 2006
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1 The OECD Symposium on Agencies and Public Private Partnerships 6 th July 2006 John Fitzgerald Acting Deputy Secretary, Commercial Division Department of Treasury and Finance, Victoria, Australia
2 Outline Portfolio Responsibilities Approval process for Partnerships Victoria (PV) projects Partnerships Victoria Unit Governance Arrangements Roles Best Practice, Learning Lessons and Training Conclusion
3 Portfolio Responsibility No specific enabling legislation for Partnerships Victoria Cabinet approves policy and guidelines: Policy mandates consideration of Partnerships Victoria by all Departments and Agencies All Ministers have power to enter into Partnerships Victoria contracts
4 Portfolio Responsibility MINISTERS Bracks, Hon. Steve MLA (Premier) Brumby, Hon. John MLA (Treasurer) Thwaites, Hon. John MLA (Deputy Premier) Allen, Hon. Jacinta MLA (Education Services) Batchelor, Hon. Peter MLA (Transport) Broad, Hon. Candy MLC (Local Government & Housing) Cameron, Hon. Bob MLA (Agriculture) Holding, Hon. Tim MLA (Police) Kosky, Hon. Lynne MLA (Eduction & Training) Lenders, Hon. John MLC (Finance & Major Projects) Madden, Hon. Justin MLC (Sport & Recreation) Pike, Hon. Bronwyn MLA (Health) Theophanous, Hon Theo MLC Treasurer responsible for the Partnerships Victoria framework Relevant Portfolio Minister responsible for implementation of individual Partnerships Victoria projects
5 Portfolio Responsibility Policy (Treasurer) Victoria s guidelines have been predominantly adopted by most Australian jurisdictions and used as reference materials in some overseas countries. Partnerships Victoria Policy Overview Practitioners Guide Risk Allocation and Contractual Issues - a guide Public Sector Comparator - a technical note Contract Management Framework Public Sector Comparator - supplementary technical note Use of Discount Rates Standard Commercial Principles Other specific guidance - ongoing June 2000 June 2001 June 2003 July 2003 June 2005
6 Portfolio Responsibilities PV PROJECTS Berwick Community Hosiptal Royal Women s Hospital Redevelopment EastLink Spencer Street Station Redevelopment Echuca/Rochester Wastewater Treatment Plant Wodonga Wastewater Treatment Plant Enviro Altona Film and Television Studio Complex Melbourne Convention Centre Development Partnerships Victoria Correctional Facilities Victorian County Court Emergency Alerting System Project Metropolitan Mobile Radio Mobile Data Network RESPONSIBLE DEPARTMENT Department of Human Services Department of Infrastructure Department of Sustainability & Environment/ Relevant Water Authority Department of Innovation, Industry and Regional Development Department of Justice Royal Melbourne Showgrounds Redevelopment Department of Primary Industries
7 Outline Portfolio Responsibilities Approval process for Partnerships Victoria projects Partnerships Victoria Unit Governance Arrangements Roles Best Practice, Learning Lessons and Training Conclusion
8 Project Impact Points Opportunity to Influence Outcome PPP Readiness for Service Post- Implementation Investment Decision Procurement Strategy Business Case Strategic Viability Confirm Strategy Confirm Business Case Procurement Strategy Investment Decision In-Service Confirm Benefits Time
9 Project Approval Process TREASURER APPROVAL REQUIRED TREASURER APPROVAL REQUIRED TREASURER APPROVAL REQUIRED
10 Project Approval Process TREASURER APPROVAL REQUIRED Sound process engenders market confidence
11 Project Approval Process Role of Treasurer Requirement for Treasurer s approval at key stages gives PV Unit strength Having Treasurer as PPP Minister also facilitates consideration of PV Budget issues
12 Outline Portfolio Responsibilities Approval process for Partnerships Victoria projects Partnerships Victoria Unit Governance Arrangements Roles Best Practice, Learning Lessons and Training Conclusion
13 Department of Treasury & Finance Commercial Division Budget Financial Management Division Commercial, Infrastructure & Risk Management (CIRM) Group Property Group Strategic Management Division Partnerships Victoria Unit Commercial Governance unit Procurement group Gateway Unit Economic & Financial Policy Division Client Services (DOI/DOJ/DVC/DPC/DSE/ DE&T/DHS/DTF/DIIRD/DPI) Risk Management Unit VicFleet
14 Structure Director Executive Assistant Policy Partnerships Victoria Unit (Head, Partnerships Victoria) Financial & Comm Project/Cont Mgmt Risk Management Unit (Assistant Director) Commercial Governance Unit (Assistant Director) Gateway Unit Executive Manager Assistant Director Executive Assistant Client Services DOI Client Services DOJ/DVC/DPC Client Services DSE Client Services DE&T/DHS Client Services DTF/DIIRD/DPI (Executive) (Executive) (Executive) (Executive) (Executive)
15 Outline Portfolio Responsibilities Approval process for Partnerships Victoria projects Partnerships Victoria Unit Governance Arrangements Roles Best Practice, Learning Lessons and Training Conclusion
16 Partnerships Victoria Unit Policy and Guidelines Roles Policy Development Project Implementation (Advisory) Contract Management (Policy & Advisory)
17 Partnerships Victoria Unit - Projects Partnerships Victoria Role Provide expert commercial advice Ensure policy issues identified / addressed Maintain integrity of Partnerships Victoria Policy positions Process Monitor Budgetary issues Facilitate Treasurer s Approvals
18 Partnerships Victoria Unit - Projects PV Transport Project Minister for Transport Steering Committee MoT (chair) Project Director DTF DPC Independent Secretary Ministry of Transport Probity Adviser Project Director MoT (Chair) Comm Manager DPC Tech Manager DTF Working Group Commercial Manager Communication Manager Technical Manager Commercial Financial In-House Legal Planning Engineering Design Contracted Consultants In-House
19 Partnerships Victoria Unit Contract Management Establish / Update Contract Management (CM) Policy Framework Develop/Oversee Training Assist in Development of CM Project Plans Monitor Monthly Reporting Lessons Learnt Dissemination Addressing Common Issues eg refinancing requests
20 Timeframes for a PPP Project Operations Construction Stage of project Negotiate and execute contract Request for Proposals Expressions of Interest Business Case Time in Days
21 Certainty of Achieving Project Objectives 100% Operations Construction and Commissioning Negotiate and execute contract Certainty of Achieving Project Objectives Request for Proposals Expressions of Interest Business Case 0% Certainty of achieving project objectives if contract management is effective Certainty of achieving project objectives if contract management is ineffective Time in Days
22 Outline Portfolio Responsibilities Approval process for Partnerships Victoria projects Partnerships Victoria Unit Governance Arrangements Roles Best Practice, Learning Lessons and Training Conclusion
23 TRADITIONAL PROCUREMENT Gateway Skill Gaps PARTNERSHIPS VICTORIA Gateway Strategic Review * Business case * Traditional Procurement Strategy * Business Case Development Overall Training in Partnerships Victoria (Melbourne University) Strategic Review * Business case * PPP PV Process Tender Evaluation * Gateway Reviews Output Specification & RFT Readiness for Service * Benefit Evaluation * * Gateway Review Contract Management (Melbourne University) Contract Management
24 Victorian Initiatives to Develop Skills TRADITIONAL PROCUREMENT Gateway PARTNERSHIPS VICTORIA Strategic Review * Business case * 100+ public servants have attended DTF initiated Business Case workshops. Traditional Procurement Strategy * Tender Evaluation * Readiness for Service * public and private sector participants have undertaken training as Gateway review team leaders and members Benefit Evaluation * * Gateway Review
25 Victorian Initiatives to Develop Skills 60 public and private sector participants in Partnerships Victoria short courses. (Melbourne University) 20+ Masters Students in Infrastructure PARTNERSHIPS VICTORIA Gateway Strategic Review * Business case * PPP Specialised courses in designing and writing output service specifications, KPIs and Requests for Tender documents. PV Process 50+ public and private sector Participants in Contract Management courses. (Melbourne University) Contract Management
26 Outline Portfolio Responsibilities Approval process for Partnerships Victoria projects Partnerships Victoria Unit Governance Arrangements Roles Best Practice, Learning Lessons and Training Conclusion
27 Conclusion Partnerships Victoria Governance Arrangements Benefits Treasurer is PPP Minister Senior Minister also oversees Budget Portfolio Minister has project responsibility PPPs are about long term service delivery PV Unit sole responsibility for PV policy active role in PPP procurement process Centre of Expertise Training, Learning Lessons and Skill Development
28 Partnerships Victoria Website Questions?
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