the oecd symposium on agencies and public private partnerships · the oecd symposium on agencies...
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The OECD Symposium on Agencies and Public Private Partnerships
6th July 2006John FitzgeraldActing Deputy Secretary, Commercial DivisionDepartment of Treasury and Finance, Victoria, Australia
Portfolio Responsibilities
Approval process for Partnerships Victoria (PV)projects
Partnerships Victoria Unit
Governance Arrangements
Roles
Best Practice, Learning Lessons and Training
Conclusion
Outline
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
Portfolio ResponsibilityMINISTERS
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
Policy (Treasurer)Victoria’s guidelines have been predominantly adopted by most Australian jurisdictions and used as reference materials in some overseas countries.
Partnerships Victoria PolicyOverviewPractitioners’ GuideRisk Allocation and Contractual Issues - a guidePublic Sector Comparator - a technical noteContract Management FrameworkPublic Sector Comparator - supplementary technical noteUse of Discount RatesStandard Commercial PrinciplesOther specific guidance - ongoing
June 2001June 2003
July 2003
June 2000
June 2005
Portfolio Responsibility
Department of Primary IndustriesRoyal Melbourne Showgrounds Redevelopment
Department of JusticePartnerships Victoria Correctional FacilitiesVictorian County CourtEmergency Alerting System ProjectMetropolitan Mobile RadioMobile Data Network
Department of Innovation, Industry and Regional Development
Film and Television Studio ComplexMelbourne Convention Centre Development
Department of Sustainability & Environment/Relevant Water Authority
Echuca/Rochester Wastewater Treatment PlantWodonga Wastewater Treatment PlantEnviro Altona
Department of InfrastructureEastLinkSpencer Street Station Redevelopment
Department of Human ServicesBerwick Community HosiptalRoyal Women’s Hospital Redevelopment
Portfolio ResponsibilitiesPV PROJECTS RESPONSIBLE DEPARTMENT
Outline
Portfolio Responsibilities
Approval process for Partnerships Victoriaprojects
Partnerships Victoria Unit
Governance Arrangements
Roles
Best Practice, Learning Lessons and Training
Conclusion
Project Impact Points
Confirm
Strategy
Confirm Business Case
Procurement Strategy
Investment Decision
In-Service
Time
Confirm Benefits
Opportunity to Influence Outcome
Strategic Viability
Business Case
Procurement Strategy
Investment Decision
Readiness for Service
Post-Implementation
PPP
TREASURER APPROVAL REQUIRED
TREASURER APPROVAL REQUIRED
TREASURER APPROVAL REQUIRED
Project Approval Process
• Sound process engenders market confidence
TREASURER APPROVAL REQUIRED
Project Approval Process
Role of TreasurerRequirement for Treasurer’s approval at key stages gives PV Unit strength
Having Treasurer as PPP Minister also facilitates consideration of PV Budget issues
Project Approval Process
Outline
Portfolio Responsibilities
Approval process for Partnerships Victoriaprojects
Partnerships Victoria Unit
Governance Arrangements
Roles
Best Practice, Learning Lessons and Training
Conclusion
Commercial, Infrastructure & Risk Management(CIRM) Group
Partnerships VictoriaUnit
RiskManagement
Unit
CommercialGovernance unit
Gateway Unit
Client Services(DOI/DOJ/DVC/DPC/DSE/
DE&T/DHS/DTF/DIIRD/DPI)
Department of Treasury & Finance
Budget FinancialManagement Division
Economic & FinancialPolicy Division
Commercial Division
Property Group
Procurement group
VicFleet
Strategic ManagementDivision
Risk Management Unit
(Assistant Director)
CommercialGovernance Unit
(Assistant Director)
Gateway Unit
Executive Manager
Client ServicesDOI
(Executive)
Client ServicesDOJ/DVC/DPC
(Executive)
Client Services DSE
(Executive)
Client ServicesDE&T/DHS
(Executive)
Client ServicesDTF/DIIRD/DPI
(Executive)
DirectorExecutive Assistant
Assistant DirectorExecutive Assistant
Structure
Policy Project/Cont MgmtFinancial & Comm
Partnerships Victoria Unit(Head, Partnerships Victoria)
Outline
Portfolio Responsibilities
Approval process for Partnerships Victoriaprojects
Partnerships Victoria Unit
Governance Arrangements
Roles
Best Practice, Learning Lessons and Training
Conclusion
Partnerships Victoria Unit – Policy and Guidelines
Roles
Policy Development
Project Implementation (Advisory)
Contract Management (Policy & Advisory)
Partnerships Victoria Unit - Projects
Partnerships Victoria Role
Provide expert commercial advice
Ensure policy issues identified / addressed
Maintain integrity of Partnerships VictoriaPolicy positionsProcess
Monitor Budgetary issues
Facilitate Treasurer’s Approvals
Minister for Transport
MoT (chair)Project DirectorDTFDPCIndependent
SecretaryMinistry of Transport
MoT (Chair)Comm Manager DPCTech Manager DTF
Project DirectorProbity Adviser
CommercialManager
CommunicationManager
TechnicalManager
CommercialFinancial In-House Legal Planning Engineering Design
In-House
PV Transport Project
Steering Committee
WorkingGroup
Partnerships Victoria Unit - Projects
Contracted Consultants
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
Partnerships Victoria Unit – Contract Management
Timeframes for a PPP Project
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Time in Days
Business Case
Expressionsof Interest
Request forProposals
Negotiateand execute
contract
Construction
Operations
Stag
e of
pro
ject
0 200 400 600 800 1000 1200 1400 1600 1800
Time in Days
Business Case
Expressionsof Interest
Request forProposals
Negotiateand execute
contract
Construction andCommissioning
Operations
Certainty of Achieving Project Objectives
Certainty of achieving project objectives if contract management is effective
Certainty of achieving project objectives if contract management is ineffective
100%
Certainty ofAchieving
ProjectObjectives
0%
Portfolio Responsibilities
Approval process for Partnerships Victoriaprojects
Partnerships Victoria Unit
Governance Arrangements
Roles
Best Practice, Learning Lessons and Training
Conclusion
Outline
Strategic Review *
Business case *
Procurement Strategy *
Tender Evaluation *
Readiness for Service *
Benefit Evaluation *
PVProcess
ContractManagement
PPPTraditional
Gateway Gateway
Business case *
Strategic Review *
* Gateway Review
TRADITIONALPROCUREMENT
PARTNERSHIPSVICTORIA
Business CaseDevelopment
Overall Training inPartnerships Victoria
(Melbourne University)
GatewayReviews
ContractManagement
Skill Gaps
Output Specification & RFT
(Melbourne University)
Strategic Review *
Business case *
Procurement Strategy *
Tender Evaluation *
Readiness for Service *
Benefit Evaluation *
Traditional
Gateway
* Gateway Review
TRADITIONALPROCUREMENT
Victorian Initiatives to Develop Skills
100+ public servants have attendedDTF initiated Business Case workshops.
300 + public and private sector participantshave undertaken training as Gateway reviewteam leaders and members
PARTNERSHIPSVICTORIA
PVProcess
ContractManagement
PPP
Gateway
Business case *
Strategic Review *
PARTNERSHIPSVICTORIA
Victorian Initiatives to Develop Skills
60 public and private sectorparticipants in Partnerships Victoriashort courses. (Melbourne University)20+ Masters Students in Infrastructure
Specialised courses in designing andwriting output service specifications, KPIs and Requests for Tender documents.
50+ public and private sector Participants in Contract Managementcourses. (Melbourne University)
Portfolio Responsibilities
Approval process for Partnerships Victoriaprojects
Partnerships Victoria Unit
Governance Arrangements
Roles
Best Practice, Learning Lessons and Training
Conclusion
Outline
ConclusionPartnerships Victoria Governance ArrangementsBenefits
Treasurer is PPP MinisterSenior Ministeralso oversees Budget
Portfolio Minister has project responsibilityPPPs are about long term service delivery
PV Unitsole responsibility for PV policyactive role in PPP procurement processCentre of ExpertiseTraining, Learning Lessons and Skill Development
Questions?
www.partnerships.vic.gov.au
Partnerships Victoria Website