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VICTORIAN GOVERNMENT INFRASTRUCTURE POLICY REFORMS
An Nguyen | Executive Director and Head of Partnerships Victoria – Infrastructure Delivery Group, Victorian Department of Treasury and Finance
Recognising the vital role infrastructure will play in driving Victoria’s economic recovery from the coronavirus (COVID-19) pandemic, the Victorian Department of Treasury and Finance (DTF) is undertaking a comprehensive infrastructure policy reform agenda to enhance the planning, procurement and delivery of the Victorian Government’s significant infrastructure program.
Using learnings from past projects, international best practice and responding to the impacts from the coronavirus pandemic, these policy reforms seek to leverage significant government infrastructure investments to drive economic recovery and support a strong construction industry.
COORDINATED PROCUREMENT REVIEWS
DTF and New South Wales Treasury are conducting a joint review of their major infrastructure procurement processes. This is an opportunity to share experiences, leverage best practice and enhance policy alignment across the two jurisdictions, establishing a greater degree of consistency among the two markets. The joint review aligns with Victoria’s coronavirus pandemic response by reforming procurement processes and contracting models to deliver projects that support economic stimulus. It will be overseen by an Expert Panel, comprising of a select number of Australian infrastructure experts, who will provide independent advice and recommendations for policy reform options.
Separately, DTF is also completing a review with the Victorian Major Transport Infrastructure Authority on project packaging and delivery strategy, including procurement and delivery models for transport infrastructure mega-projects.
These reviews will inform and shape updates to key Victorian Government infrastructure policies and guidance. DTF intends to engage extensively with government and industry stakeholders in these reviews, recognising their participating role in the State’s infrastructure agenda and ensuring a set of targeted and deliverable reform options be developed.
The Partnerships Victoria policy, established nearly 20 years ago, provides the foundation for delivery of PPPs in Victoria. The policy has served to facilitate successful delivery and operation of a significant number of iconic projects in various sectors.
A key factor in its long-standing success is the strong commitment by successive Victorian Governments to maintaining the currency and fitness for purpose of the policy framework. Partnerships Victoria has evolved over time to improve project outcomes, including the swift responses to the Global Financial Crisis a decade ago and release of the Standard Project Deeds and associated commercial principles in more recent times.
PPPs and other traditional procurement approaches continue to play a key role in delivering and ensuring value to the State for the right projects.
DTF is currently updating the PPP policy and guidelines to reflect lessons from recent projects and to meet the changing industry and economic circumstances. This will include reviewing how particular risks are allocated and managed during delivery of projects, improvements to the way projects are procured and contracts are managed, and increasing early and ongoing collaboration with industry.
CONSTRUCTION CONTRACT STANDARDISATION
In conjunction with the Victorian Government’s release of the Public Construction Procurement Framework in July 2018, a number of standard form construction contracts were developed.
DTF is progressing a second phase of standardisation to further reduce the number of bespoke contracts and enhance the current suite of standard contracts. Model clauses will be developed with optionality to suit project complexity, scale and objectives. The intent is to encourage greater use of standardised contracts to increase speed to market, improve consistency in treatment of contract terms, reduce transaction costs and build capability in contract administrators.
MARKET-LED PROPOSAL REFORMS
Market-led proposals provide an opportunity for Victorians to benefit from a broad range of new ideas and innovations in the delivery of infrastructure and services. Proponents approach the Victorian Government for support and approval of their proposals and pre-submission meetings are regularly undertaken to discuss new initiatives.
The Market-led Proposals Guideline is currently being reviewed to consider further improvements to the assessment process and reduce assessment timeframes for proponents.
FOR MORE INFORMATION PLEASE CONTACT
An Nguyen
Executive Director and Head of Partnerships Victoria – Infrastructure Delivery Group, Victorian Department of Treasury and Finance E: an.nguyen@dtf.vic.gov.au
