❓ Mr. Wyatt questions the Treasurer on the financial benefits of using a Public Private Partnership (PPP) for school construction, specifically regarding cost savings and other advantages. The Treasurer's response indicates that the procurement process is incomplete, preventing a precise cost saving estimate, but highlights potential benefits like innovative design and whole-of-life value.
AnsweredQoN 3795Legislative Assembly
QuestionView source ↗
I refer to the Treasurer's remarks in a media statement, dated 30 January 2015, that: “Having a private company finance the design and construction means the State Government starts paying only when each school is operational”, and ask: (a) based on the State Government’s cost of borrowing, what is the estimated cash saving to the State Government from having these costs met by a private consortium that warrants the use of a PPP; and (b) what other benefits, if any, are there to delivering these schools via a Public Private Partnership?
AnswerView source ↗
Answered
21 April 2015
Response time
35 days
(a) The estimated cash saving to Government, from the Western Australian Schools Public Private Partnership project, cannot yet be provided as the procurement process has not been complete. A crucial element of the evaluation of any bids from the private sector is to consider the value‑for‑money provided to the State.
(b) The key benefits of delivering these schools under a PPP are anticipated to include:
- Innovative design that provides quality teaching and learning environments;
- Achieving value for money over the whole‑of‑life of the schools as the private sector company will be required to maintain the assets to an agreed standard and will factor this into its design;
- Improved efficiencies in service delivery for the Department of Education through, for example, allowing the Principal and school staff to focus on teaching; and
- Achieving time and cost efficiencies in the delivery of the schools through economies of scale.
(b) The key benefits of delivering these schools under a PPP are anticipated to include:
- Innovative design that provides quality teaching and learning environments;
- Achieving value for money over the whole‑of‑life of the schools as the private sector company will be required to maintain the assets to an agreed standard and will factor this into its design;
- Improved efficiencies in service delivery for the Department of Education through, for example, allowing the Principal and school staff to focus on teaching; and
- Achieving time and cost efficiencies in the delivery of the schools through economies of scale.
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