❓ Hon Sue Ellery questions the Minister for Education regarding a $370 million public-private partnership (PPP) for eight schools, inquiring about the contract's structure, attractiveness to private operators, and potential profit. The Minister provides details on the contract structure and attractiveness, but declines to disclose profit information due to commercial sensitivity.
AnsweredQoN 1178Legislative Council
QuestionView source ↗
SCHOOLS —
PUBLIC–PRIVATE PARTNERSHIPS
1178. Hon SUE ELLERY to the
Minister for Education:
I refer to the government's announcement of the new
public–private partnership, and that one company will be awarded the
contract worth $370 million for eight schools over 25 years.
(1) What is the structure of the contract?
(2) What features of the contract make it attractive to
private operators?
(3) What profit can a successful operator expect to make over
the life of the contract?
PUBLIC–PRIVATE PARTNERSHIPS
1178. Hon SUE ELLERY to the
Minister for Education:
I refer to the government's announcement of the new
public–private partnership, and that one company will be awarded the
contract worth $370 million for eight schools over 25 years.
(1) What is the structure of the contract?
(2) What features of the contract make it attractive to
private operators?
(3) What profit can a successful operator expect to make over
the life of the contract?
AnswerView source ↗
I thank the honourable member for some notice of the
question.
(1) The
structure of the contract is for a private company to design, build, finance
and maintain eight schools over a 25-year period.
(2) The
25-year contract period and scale of the contract scope provides a private
company the opportunity to minimise whole-of-life-cycle costs relative to
conventional public sector delivery. The packaging of eight schools provides
efficiencies in design, construction and maintenance due to collaboration of
the project company's architects, building contractors and facilities
managers. PPPs have a strong record in this regard, whereby savings arising
from these efficiencies outweigh additional financing costs and thus offer
value for money to government.
(3) This information is commercially sensitive and will not
be visible to the state.
question.
(1) The
structure of the contract is for a private company to design, build, finance
and maintain eight schools over a 25-year period.
(2) The
25-year contract period and scale of the contract scope provides a private
company the opportunity to minimise whole-of-life-cycle costs relative to
conventional public sector delivery. The packaging of eight schools provides
efficiencies in design, construction and maintenance due to collaboration of
the project company's architects, building contractors and facilities
managers. PPPs have a strong record in this regard, whereby savings arising
from these efficiencies outweigh additional financing costs and thus offer
value for money to government.
(3) This information is commercially sensitive and will not
be visible to the state.
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