A Public Private Partnership (PPP) involves a long-term contract between the public and private sectors where the Government pays the private sector to deliver economic or social infrastructure and related services in support of the Government’s service objectives. Typically, a partnership involves agreed private financing and risk transfer arrangements, with the private sector responsible for the construction of the infrastructure and for its condition and performance throughout its life.
The national PPP Guidelines, to which the Western Australia Government subscribes, require that a project with a capital value of $50 million or more is considered for potential PPP delivery. The State Government and national PPP guidance is available via the Department of Treasury website.
This document clarifies the principles, governance and approval framework for the alliance delivery method. It also consolidates the positive outcomes of alliance contracting to ensure that the method is used and applied appropriately.
Under an alliance arrangement, a State agency delivers a major capital project collaboratively with private sector parties and agrees to take uncapped risks and share opportunities. The use of alliance contracting is appropriate when it can be demonstrated that the approach will deliver value for money over other alternatives including a PPP arrangement.