QTC’s role in infrastructure

Peter Dann, General Manager Client Services Wednesday 9 December Queensland Infrastructure Summit

Outline of presentation

§  What is QTC?

–  Debt and cash management

–  Advisory

–  Education

§  Where do we fit into the infrastructure procurement and delivery equation?

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Queensland Treasury Corporation

§  Supporting the State’s financial success while focused on whole-of-State outcomes

§  Provides financial services to the State and its public sector entities, including local government

–  debt funding and management

–  surplus cash management facilities

–  financial risk management advisory services

–  specialist public finance education

The Government’s central financing authority

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Queensland Treasury Corporation Debt funding and management

§  QTC sources funds from the market at lowest possible cost and risk

–  achieves economies of scale by managing all debt funding

–  leverages the State’s AA+ credit rating

–  removes/reduces refinancing and other financial risks

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Queensland Treasury Corporation

§  Used to fund capital expenditure requirements

§  Approximately $93 billion debt outstanding

Loans to clients

* Includes Queensland water entities, universities, grammar schools and water boards. ** Includes other bodies within the public accounts.

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Queensland Treasury Corporation

§  QTC can draw on its unique mix of specialist skills, expertise and experience to provide advisory services to clients

–  low cost

–  tailored to the public sector

Financial risk management advisory services

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Queensland Treasury Corporation

§  QTC’s education and training courses complement its products and advisory services

§  QTC courses

–  leverage its specialist financial, commercial and risk management expertise to enhance client’s own in-house capabilities

–  are developed and delivered by QTC and industry experts

–  can be tailored to address clients’ specific requirements

–  are delivered on a cost-recovery basis

Specialist public finance education

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Queensland Government infrastructure

§  Queensland Government has a defined infrastructure framework

–  Building Queensland

–  Treasury (Commercial Group)

–  Department of State Development/Coordinator General

§  QTC’s role is not as clearly spelt out, and generally not as direct

A defined framework

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Queensland Government infrastructure

§  In order for the State to act as an effective sponsor of infrastructure, it needs to act on the basis of solid foundations

§  QTC works with Treasury to manage the State’s debt

–  Broader balance sheet management

–  State’s credit rating

Helping to keep the house in order

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Queensland Treasury Corporation

§  QTC provides public sector clients and local government with:

–  financial risk management

–  financial and commercial advice

–  financial transactions and structures (hedging advice)

–  project management support (assess infrastructure proposals and assist business case development)

§  Outside of Building Queensland and Treasury Commercial Group mandate

Substantial advisory services for infrastructure procurement

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Disclaimer

QTC has prepared this presentation for use solely for the Queensland Infrastructure Summit.

The recipient shall not use the presentation for any purpose other than the purpose for which the presentation was expressly provided. The presentation contains confidential information. None of its contents may be provided or disclosed to any other party without QTC’s express written consent.

The information in this presentation is provided by QTC in good faith in relation to the information available at the time of its preparation and on the basis of information supplied to QTC by third parties. QTC has not independently verified the information supplied to it and accordingly does not represent that the information provided to QTC is accurate or complete and it should not be relied upon as such. QTC is under no obligation or duty to notify anyone if there is any change in any information or any new information or if it forms a different opinion at any time after the date of this presentation.

Neither QTC nor any of its employees or agents accepts any liability for any loss or damage suffered by any person as a result of that person or any other person placing any reliance on, or acting on the basis of, the contents of this presentation. To the extent permitted by law, QTC expressly excludes any representation or warranty in relation to the accuracy, currency and completeness of the presentation. To the extent permitted by law, QTC limits its liability to the amount of any fees paid to QTC for this presentation.

The recipient acknowledges that QTC is not a legal, tax or accounting advisor and that independent expert advice from practitioners in the relevant disciplines should be obtained on those matters before acting upon the information contained in this presentation.

© Queensland Treasury Corporation 2015

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