Media reports that the Queensland Government will proceed with the delivery of seven schools, worth $200 million, through a Public Private Partnership (PPP) model is welcome news; and shows that the Queensland Government is embracing modern, value-for-money, procurement options, says Infrastructure Partnerships Australia – the Nation’s peak infrastructure body.
“The delivery of schools using innovative PPP models is tried and proven - with NSW, Victoria and South Australia all in the process of procuring or delivering better quality, better designed education facilities, that are maintained over the long term,” said IPA Executive Director Brendan Lyon.
“PPPs will allow the Queensland Government to harness private sector expertise in the construction and design of world class schools and importantly, will allow the Government to stretch its limited education dollar further, while delivering better value for taxpayers.
“By harnessing private investment, the Queensland Government will ensure that these schools can be delivered to the rapidly growing south-east of the State much sooner than if left to stretched public sector budgets.
“The South-East Queensland Infrastructure Plan has identified more than $107 billion of infrastructure projects which need to be delivered over the next decade and a half. Queensland needs more than $12 billion in social infrastructure projects alone, meaning the Queensland Government is right to stretch its investment by attracting private sector capital.
“A mix of funding options, including the appropriate use of PPPs, must be examined in the delivery of other major projects throughout the State – including the $1.2 billion Sunshine Coast hospital and the $700 million Gold Coast rapid transport system, among many others.
“Australia has a backlog of more than $800 billion in economic infrastructure, meaning that private investment will be critical if Australia is to meet its infrastructure challenges.
“Public Private Partnerships have been shown time and again to deliver significant cost and time savings to governments, with cost savings of up to 30.8 per cent over traditional government-delivered projects.
“When you are talking about projects worth hundreds of millions or even billions of dollars, these savings are significant.
“By using a partnership model, the Queensland Government will ensure the long-term maintenance and management of these schools and allow teachers and principals to focus on delivering better education outcomes for students, rather than trying to manage complex repairs and maintenance.
“The current challenges in global financial markets may require that the PPP model evolves to meet short-term challenges, but PPPs continue to represent the best value-for-money when
properly scoped and executed.
“The Queensland Government has had a few false starts in the use of PPPs, but Premier Bligh and Treasurer Andrew Fraser have signalled a strong intention to begin reaping the benefits from PPPs, already enjoyed by other states.
“The infrastructure sector is also pleased by recent media reports that the State Opposition is developing a robust PPP policy.” |
