<span class="" id="parent-fieldname-description"> A set of reforms on Victoriaâs PPP policy, put in place back in May, are getting a good reception from industry. </span> <p>On May 2, the Victorian state government announced significant reforms, which treasurer Michael O’Brien said would see the next phase of public private partnership (PPP) projects deliver high-quality infrastructure and services for Victorians.</p><p>And while that next phase of projects hasn’t been finished yet, the industry is responding well to the changes.</p><p>UGL chief executive, Richard Leupen, told the <em>Australian Financial Review </em>last week that competing for PPPs on major projects was “incredibly expensive.”</p><p>“We spent $22m on the Sydney train bid a few years ago and lost,” Leupen was quoted as saying. “When it’s really big like that, it impacts your annual result.”</p><p>But contractors are reportedly welcoming the new reforms, which treasure O’Brien announced earlier this year.</p><p>Specifically, contractors bidding for Melbourne’s East West Road Link project have reported being pleased with the reforms.</p><p>“A stronger framework for a new generation of PPPs is vital to ensuring we can work with the private sector to deliver the infrastructure and services that boost Victoria’s liveability and productivity,” O’Brien said in May.</p><p>The new PPP requirements include:</p><ul><li>A flexible model for both the public and private sector that can incorporate modified financing structures</li><li>Testing value for money using an affordability benchmark for complex projects</li><li>A new streamlined approach for small-scale projects.</li></ul><p>“The reforms will ensure Victoria continues to lead the nation in its delivery of infrastructure and services in partnership with the private sector,” Mr O’Brien said.</p><p>When told of the latest reports that industry was welcoming the changes, a spokesperson at the Victorian treasurer’s office told <em>Rail Express</em>: “The Public Private Partnership model chosen for the East West Link will ensure maximum value for taxpayer money as well as maximum interest from the private sector.</p><p>“The high level of industry interest to deliver the project gives us confidence that the PPP model and competitive procurement process will deliver the right outcome for Victorians.”</p><p>The Australasian Railway Association also welcomed the new PPP structure.</p><p>“The new Partnership Victoria Requirements are a good response to changes in market conditions,” ARA CEO, Bryan Nye, told <em>Rail Express</em>.</p><p>“Specifically, the government’s fiscal challenges, the private sector’s financial constraints and the public’s increasing demand for infrastructure.</p><p>“The reforms show a clear commitment from the Victorian Government for an increase level of PPP activity in the state, and a willingness to address recent market challenges.</p><p>“With many beneficial characteristics including reduced bid costs, modified finance structures, a framework that deliver better value for money, expanded coverage of services and more accessible PPP models for smaller projects, the ARA believes that these reforms will boost the level of PPP investment in Victoria,” Nye concluded.</p><p>For an in-depth analysis of private sector funding and rail infrastructure, including availability payment PPPs, asset recycling, and land value capture, along with case studies of Gold Coast Light Rail, GoldLinQ and Plenary, see the AusRAIL print edition of Rail Express, due to hit desks second week of November and in all delegate bags of the AusRAIL PLUS conference.</p><p>Visit: <a href="http://www.ausrail.com">www.ausrail.com</a></p>
