Kim Curtain

Head of Infrastructure & Structured Finance

5Ps of PPPs in the

Premier State

1

Progress – PPPs in the delivery phase1Design, construction, financing (during

development), operation and

maintenance of a 488 bed privately

licensed hospital in Frenchs Forest.

$640m

$2.2bn

Construction and

operation of a new

12km light rail system

through the CBD and

the University of NSW

corridors.

A 25-year concession to

build on the existing

Darling Harbour

convention and exhibition

centre site.

$1.1bn

2

Progress – PPPs in the delivery phase1Will be the first fully-automated metro rail

system in Australia including 23km of new

track and eight new stations. $8.3bn

$7.4bnStages 1 & 2

Links Sydney’s west and

southwest with the city,

airport and port precincts

in a 33km continuous

motorway.

The construction

and operation of

twin 9km tolled

tunnels under

Pennant Hills Road.

~$2.9bn

3

Performance – Monitoring, measuring and

reporting of PPP projects in the operational phase 2BA

C

4

Key Performance Indicators

Linking performance to

the payment mechanism

Availability payment“The payment mechanism lies at

the heart of the PPP contract. The

primary purpose of the payment

mechanism is to remunerate the

PPP Company sufficiently for it to

be willing to enter into the PPP

contract and provide the service.

The payment mechanism is the

principal means for allocating risks

and providing incentives in the

PPP Contract.”

”European PPP Expertise Centre”

DTreasury Circular NSWTC15-16

Managing PPP Contracts

15 August 2015

Pipeline – Future projects3$73.3bn

Record infrastructure

investment over the

next 4 years, to

2019/20.

$41.5bn

(57%)

$6bn

(8%)

$4.5bn

(6%)

$3.7bn

(5%)

$2.4bn

(3%)

$2.9bn

(4%)

$12.3bn

(17%)5

6

Four major hospital redevelopments at Maitland, Wyong, Goulburn

and Shellharbour and delivery of services at the redeveloped Bowral

Hospital.

Health Partnerships

Ivanhoe Estate

Call for Expressions of Interest on 15 September 2016

Developing social affordable and private housing in Macquarie Park.

Tenders closed 9 November 2016

Pipeline – Future projectsProcurement3

7

Construction of a new 1,700 bed correctional facility at Grafton.

New Grafton

Correctional Centre Tenders closed 10 November 2016

Newcastle Integrated

ServicesProposals under evaluation

A new multi-modal transport interchange at Wickham and light rail

between the Wickham interchange and Pacific Park.

Social and Affordable

Housing Fund

A new innovative funding model which seeks delivery

of access to 3,000 additional social and affordable

homes in metropolitan and regional NSW, together

with integrated support services.

Pipeline – Future projectsProcurement3

Proposals under evaluation for Phase 1 delivery of dwellings & associated

services

$1.1bn

Parramatta Light Rail

Critical part of the Sydney Light Rail network to service commuters in

Sydney’s Western CBD.

Development of Final Business Case underway

Pipeline – Future projects3Western Harbour Tunnel

and Beaches linkDevelopment of Business Case underway

Key connection from the new M4 East motorway in Sydney’s inner

west to Sydney’s northern suburbs

Connects the new M4 and M5 motorways to be built under stages

one and two of the scheme to provide a connection between the two

key corridors.

WestConnex Stage 3:

M4-M5 LinkBusiness case finalised ~$7.8bn

8

9

Multiple packages

Tunnel and Station Excavations RFT issued

A new 30km metro line linking with Sydney Metro

Northwest at Chatswood, then under Sydney Harbour,

through the CBD and south west to Bankstown.

Pipeline – Future projects3$12.5bnSydney Metro City

& Southwest

Probity – Ensuring transparency and

effective governance of PPP projects 4

10

Probity – Ensuring transparency and

effective governance of PPP projects 4PPP Governance guidance is well documented

NSW Public Private

Partnership Guidelines

(2012)

11

Premier

Expenditure Review

Committee

Major Projects

Executive Committee

Program Director

Secretary

Minister

Executive

Delivery Office

Government Steering Committee

/ Advisory Board

Agency

External

Assurance

Transaction ManagementLegal Advisers Commercial/Financial Advisers Probity Adviser

Customer

Strategy &

PlanningServices

Design &

Engineering

Project

Delivery

Stakeholder &

Community

Liaison

Governance

& Controls

Cabinet Infrastructure

Committee

Other stakeholders

Community

Businesses

Local Governments

Treasury

Other Agencies

Other Reference Groups

Cabinet

It takes a village to raise a PPP

Probity – Ensuring transparency and

effective governance of PPP projects 4

12

Policy – Strengthening the framework to enable the

successful delivery of smart cities for the smart State 5NSW PPP Guidelines Conditional Debt

Pay Downs

Outcomes focussed

procurement

Interactive Tender

Process

Market soundings on

bid costs reduction PPP Toolbox

13

Passion - Infrastructure & Structured

Finance Unit6We believe the people of NSW deserve world class infrastructure and

services which are value for money.

We:

• Specialise in providing commercial and financial advice to

Government on new and existing service enabling infrastructure.

• Focus on structuring, procuring and financing complex projects.

• Identify and structure solutions to release or recycle capital.

• Engaging with the market and

key stakeholders

• Optimising value through

allocating and mitigating risk

• Living Treasury’s values

By:

• Partnering with key agencies

• Applying best practice to drive

efficiencies

• Being commercially minded

• Taking a whole of Government

approach 14

Kim Curtain

Head of Infrastructure & Structured Finance

5Ps of PPPs in the

Premier State

15