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Australia's PPP pipeline runs dry
29 July 2010
Australia’s state governments have so far been unwilling to put pressure on bid costs, or spell out a deal pipeline, for sponsors. Can a recent federally-commissioned report spur them to offer a more tempting slate of deals? By Ben Power.
Read more:
[NSW]
[victoria]
[infrastructure australia]
[western australia]
[queensland]
On 22 June Western Australia’s state government scrapped its new Children’s Hospital as a public-private partnership. A joint one-off royalty payment of A$350 million ($314 million) from mining giants BHP Billiton and Rio Tinto will instead fund construction, which starts 2012. The decision has cast a further cloud over Australia’s already patchy PPP pipeline.
The private sector is furious that another state government has scrapped a promised PPP. The Children’s Hospital decision follows the cancellation in 2009 of the $557 million South Australia prisons project, which was to be procured as a PPP, and the cancellation of New South Wales’ $3.5 billion CBD metro rail project in February this year. The fact that the cancellations are not confined to a single state is no comfort.
“Even the very thin pipeline we have is subject to some disruption,” said Graham...
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