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26 October 2015
8 December 2015
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Understanding the market-led proposal process
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Definition
A submission or request initiated and submitted by a private sector proponent to government, where the specific proposal has not been requested by the government. www.treasury.qld.gov.au/mlp
December 2015 | Market-led Proposals |
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Drivers for revision
Build market confidence
Increase proposal quality
Grow the economy
Market-led Proposals | Bringing good ideas to life |
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Key changes
A clear, staged assessment process efficient conversion of good ideas
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Current status
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The market is responding to our public commitment to MLPs
Quality Volume
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What support is sought from government?
What benefits will the
proposal provide?
Why the proposal is uniquely
positioned?
Proposal basics
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State support
deliver services to or on behalf of the government
secure responsibility for design and or delivery of infrastructure projects
access government assets
access government information
secure an exclusive mandate to undertake commercial activities
A clear request helps us assess the high-level cost to government December 2015 | Market-led Proposals |
May include a request to:
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Benefits
• Benefits to government may include: – delivery of new or improved services or products – improved delivery time or quality – development of new industries – identification and application of new revenue
streams
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• Other potential benefits include: – improved use existing infrastructure – delivery of new infrastructure – decreased demand for certain services.
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Assessment process
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represent value for money
Assessment criteria
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A strong proposal will clearly:
meet a community need or government priority
be unique in its ability to deliver a specific outcome and be unable to be replicated by a competitor
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Assessment criteria
November 2015 | Market-led Proposals |
A strong proposal will also:
have a proponent with the financial and technical capacity and capability to successfully complete the project
provide adequate detail to demonstrate the potential benefits to government
have an acceptable risk/cost allocation for the State
be feasible on a technical, commercial and practical basis.
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Whole of government decision making
December 2015 | Market-led Proposals |
Queensland Treasury
Infrastructure Local Govt &
Planning
Proposal specific
agencies State
Development
Premier & Cabinet
MLP Panel
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What makes a proposal unique?
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Competitive processes traditionally
increase value for money
Dealing exclusively with
a proponent may be warranted in
unique circumstances
Why is uniqueness important?
December 2015 | Market-led Proposals |
Uniqueness gives us confidence that another proposal could not deliver the same outcome
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What is uniqueness?
• If we enter into an exclusive mandate with you, we need to justify our position
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A unique ability to deliver an outcome
A proposal that is able to deliver an outcome in a way that cannot be replicated by
a competitor
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Combining attributes
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Delivers an outcome in a way that cannot be replicated by a competitor
Quality
Cost Time
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Intellectual property & uniqueness
December 2015 | Market-led Proposals |
While IP may strengthen uniqueness
IP is not a prerequisite for
uniqueness
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Logan Motorway Enhancement Project
• One of first examples of the framework in action - Transurban’s detailed proposal in late 2016.
• Government will decide whether to proceed with proposal, modify it, or consider other options.
• Proposed benefits include a safer and more efficient motorway, reduced travel times, and enhanced connectivity with other major road networks.
First project to move to Stage Two – Detailed Proposal
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Queensland
November 2015 | Market-led Proposals |
Brisbane Airport Rail Link (Airtrain) • 100 trains each weekday, linking
Brisbane Airport to the public network. • Airtrain granted an exclusive mandate
to develop a detailed proposal. • Appointed to design, construct,
operate, maintain and repair the rail line, and return it to the state in 2036.
• Commenced operation in May 2001.
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Interstate
• NorthConnex (Sydney) – design, build, operate, and finance project
delivering the longest road tunnel in Australia – financial close in February 2015, with completion
of the $3 billion project due in 2019
• Queen Mary Building (Sydney) – Sale of building to University of Sydney – Provides alternative accommodation options for
University of Sydney students
December 2015 | Market-led Proposals |
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Other opportunities
• The government may take a market-led proposal to the market via a competitive mechanism
• This may occur where a proposal clear addresses a government priority but is not found to be unique
• The original proponent can participate in the competitive mechanism
December 2015 | Market-led Proposals |
May result in a competitive procurement process starting sooner
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Commercial opportunities
We want proposals that: • identify mechanisms to capture and repurpose savings • present attractive risk allocations • leverage Queensland’s competitive and comparative advantages • respond to Queensland’s unique challenges
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State Infrastructure Plan (SIP)
• Features 5-15 year opportunities • Innovative market-led proposals may
address these opportunities • www.dilgp.qld.gov.au
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Future priorities
• Government is not the sole source of good ideas
• Industry expertise may help predict future demand and challenges
• Science and technology is important for Queensland’s economic future, as are the other diverse strands of our economy
• Emerging high-growth sectors present further opportunities
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Video
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Queensland Treasury MLP Team: www.treasury.qld.gov.au/mlp 07 3035 1832 [email protected]
December 2015 | Market-led Proposals |
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