Public Private Partnerships (PPPs) are widely used internationally to provide enhanced value for money and to advance delivery of essential infrastructure earlier than is otherwise possible through normal funding channels. Yet, despite their extensive use internationally, New Zealand has yet to take advantage of this procurement option.

This page provides a series of papers on PPPs to provide readers with detailed infomation that fully explains what PPPs are all about, how international best practise has now evolved and how best New Zealand can take advantage of public private partnerships to help meet the nations infrastructure development needs.

Auditor-General’s discussion paper: Managing the implications of public private partnerships

The Auditor-General’s discussion paper, Managing the implications of public private partnerships, was published yesterday.  It is available on our website at http://www.oag.govt.nz/2011/public-private-partnerships 

Public entities need to find ways to help return the Government’s operating balance to surplus as soon as possible. Government and public entities are looking for more creativity and innovation in how public services are delivered.  Partnering, and public private partnerships (PPPs) in particular, are seen as offering the potential to help with these challenges.

We have written this discussion paper to encourage a broad debate about PPPs at a time when the approach to PPPs is being developed in a more co-ordinated and centralised way than ever before.

It builds on our 2006 publication and is based on our review of international literature and an analysis of New Zealand’s PPP market maturity.  It emphasises PPPs as part of the partnering spectrum and explores some of the wider implications for both the public and private sectors. 

If you would like to discuss this paper, please contact Marcus Jackson, Research and Development Director, on (04) 917 3089 or Marcus.jackson@oag.govt.nz.

 

NZCID Chief Executive discusses PPPs on Radio Live

8 February 2008

Listen here>(1,083.28 KB)

Bond University.Public Infrastructure Bulletin

Issue six December 2007

The Public Infrastructure Bulletin is published twice annually by the Bond University Mirvac School of Sustainable Development. It aims to promote debate and discussion about the conception, development and management of public infrastructure projects.  More>

 

Common questions and answers about PPPs

This short paper answers a series of common questions about Public Private Partnerships More>

 

Performance of Public Private Partnerships and Traditional Procurement in Australia

2007

Public Private Partnerships are the best method available to Australia's governments to deliver large, complex and expensive projects, achieving significant savings in both time and cost according to a major independent Report undertaken by The Allen Consulting Group and Melbourne University commissioned by Infrastructure Partnerships Australia. The Report undertakes the first ever comprehensive national analysis of the outcomes of projects delivered by government and those delivered through partnership with the private sector. To down load the report click here>

 

Innovative Procurement of Public Infrastructure

March 2007

This briefing paper from The Victorian State Government Department of Treasury and Finance deals with a series of common misconceptions about PPPs.  One of the key "myths" addressed is the common perception "that the public sector can borrow more cheaply" - a view that that gives no recognition of the value obtained from the transfer of risk or the value that can be added through private sector innovation.

The paper is short and concise and is recommended as essential reading for all public sector decision makers looking to secure better value for money in infrastructural procurement. More

 

Closing the Infrastructure Gap - The Role of Public Private Partnerships

Deloitte Nov (2006)

This study provides a roadmap for governments at all stages of PPP development, showing them how to move up the maturity curve and take public-private partnerships to the next stage in closing the infrastructure gap. More>

 

Infrastructure development in comparative nations - Insights for NZ

NZCID & Kensington Swan
October 2006

This report places New Zealand infrastructure in the context of recent international investigations on: the role of government; the nature and extent of national infrastructure development planning; planning approval and environmental consent processes; governance; responsibility for implementation; and Parts E - H of the report describe best practice in the use of the private sector and Public Private Partnerships to advance solutions to NZ's infrastructure needs.  More>

 

PPPs In Australia

July 2006

A list of PPP PFP Projects by State in Australia. More>

 

New South Wales Treasury: New Schools Privately Financed Project Post Implementation Review

A New South Wales Treasury post implementation review of new schools delivered under a private public partnership model has found them to be "an improvement on traditional public sector delivery". More>

 

NSW New Schools II PPP project case study

Infranews 2006

In December 2005, the New South Wales (NSW) government's Department of Education and Training (DET), appointed Axiom Education to design, construct, fit-out, commission, finance, operate and maintain school facilities in 10 nominated locations. The Project achieved financial close on 28 February 2006. With the project taking only 7 months from the issue of the request for detailed proposal documentation to financial close it sets a bench mark in Australia as to fast a PPP deal can be done. David Templeman, Partner at Freehills examines the project detail, the advantages of using PPPs, the risks transferred and the value for money. More>

 

The New Schools Privately Financed Project - NSW Auditor General Performance Report

March 2006

This report looks at the New Schools Privately Financed Project, launched in 2001 to provide NSW government schools primarily in new urban release areas. The audit examined whether the processes for awarding these contracts were adequate to maximise the potential for value for money. Although the report focuses on the provision of new schools, its findings and recommendations are relevant to all agencies considering privately financed projects to provide public infrastructure. More>

 

PFI strengthening longterm partnerships HM Treasury

2006

This report builds on the measures introduced in the UK since 2003, setting out further improvements to PFI to support its ongoing important role in delivering better public services. It proposes measures to build on operational and contractual flexibility under PFI; sets out the measures that the UK Government is taking to improve the ability of the public sector to understand where PFI is likely to offer better value for money than other procurement routes; seeks to bolster the professionalism of PFI procurement to reduce procurement times; sets out how local decision making in PFI will be supported by central skills and capabilities and how changes to the existing framework will reinforce this. More>

 

Determinants of Public-Private Partnerships in Infrastructure

IMF Working Paper
April 2006

This paper constitutes the first empirical attempt to analyze the determinants of PPPs in infrastructure projects using the World Bank's Private Participation in Infrastructure (PPI) database on projects for developing countries during 1990-2003. It divides the determinants of PPPs into seven channels, taking into account different incentives and constraints in both the public and private sectors. These channels are government constraints, political environment, market conditions, macroeconomic stability, institutional quality, the legal system, and past experience with PPPs. More>

 

Achieving Public Sector Outcomes with Private Sector Partners  

Office of the Auditor General NZ
February 2006

This report by the Office of the Auditor General is designed to inform leaders and decision-makers about the key issues they need to consider across the public sector and for individual projects. The report draws on the experience of overseas jurisdictions, mainly Australia and the United Kingdom. More>

 

Financing infrastructure projects: Public private partnerships (PPPs)

New Zealand Treasury
2006

This paper discusses the main advantages and disadvantages of PPPs with particular regard to institutional circumstances in New Zealand. More>

 

Private Sector Investments in Public Infrastructure

Canadian Council for Public Private Partnerships presentation on the benefits of PPPs, summary of projects and insights for best practise. More>

 

Delivering the PPP promise: A review of PPP issues and activities

Pricewaterhouse Coopers
2005

This paper examines the potential of the PPP model for meeting the investment challenge in an efficient, cost-effective way. In particular, a review of PPP activity across Europe highlights examples of best practice and developing trends. Finally, the benefits of PPPs as well as the main difficulties facing the public and private sectors are explored, along with practical solutions for delivering a PPP approach. More>

 

The environment for PPPs in New Zealand

Ascari Partners & NZCID
2005

The paper examines the theoretical justification for PPPs, looking specifically at the New Zealand situation with a critique of progress to date on three key projects, ALPURT B2, the Tauranga Harbour Link and the Toll Systems Project (TSP). The critique considers the delivery models employed for these projects and asks whether opportunities for private sector involvement have been missed. The paper then considers the opportunities within the LTMA framework, and concludes with a series of recommendations that can be taken now under the current legislative framework and options for statutory reform. More>

 

PPP Success Stories  - Under Contract with the OECD/ECMT Transport Research Centre

May 2005

The study was commission by the Joint OECD/ECMT Transport Research Centre to document and synthesize findings from case studies of successful public-private partnerships and private sector involvement in transportation infrastructure funding (i.e. public-private partnerships) in order to assist national officials develop policies and project design and execution approaches most likely to lead to success for different types of projects. More

 

Review of Partnerships Victoria Provided Infrastructure

Peter Fitzgerald - Final Report to the Treasurer
January 2004

The review has examined project economics and contract documentation and has been briefed on the details and progress of the projects, of which two are operational and one is presently being commissioned.  More>

 

Private financing of public assets: Practical and policy problems

Bell Gully
2004

This report by Robert Lonergan outlines the background to private finance; examines the value for money issues in private financing; and discusses the potential practical and policy problems in the New Zealand context. More>

 

PFI: meeting the investment challenge - HM Treasury

July 2003

The report presents the results of HM Treasury research conducted into the performance of PFI, and outlines the steps already taken to improve the programme through building the partnership between public sector client and private contractor. It also outlines the steps the Government has taken to ensure that's value for money is not obtained at the cost of employees - terms and conditions. Finally, it proposes further improvements to the Government's process for assessing value for money, its systems for delivering projects and its ability to capture efficiently the benefits of private finance. More>

 

Working with Government - NSW State Government Guidelines for Privately Financed Projects

November 2001

These guidelines are about a means of establishing a partnership between the public and private sectors. The aim is to deliver improved services and better value for money, primarily through appropriate risk transfer, encouraging innovation, greater asset utilisation and integrated whole-of-life management. The guidelines provide a framework that enables both sectors to work together to improve public service delivery through private sector provision of infrastructure and related non-core services. More>

 

Links

Click here for links to a range of international information sources about PPPs

Click here for links to presentations on PPP best practice from NZCID seminars