Home' Future Building: The Australian Infrastructure Review : Issue 1 Contents Em
's infrastructure challenges
In 2008, the Rudd Government created uniform national PPP
guidelines to remove any barriers to private sector involvement.
These were set down by the Council of Australian Governments
upon recommendation from the Infrastructure Australia advisory
"Alongside direct investment, these measures help facilitate
the move towards a seamless national economy that promotes
productivity, reduces costs for business and supports future
economic growth," says Mr Albanese.
There is debate about whether PPPs are the best funding
companies vying for them and there have been some failures,
the underperforming Lane Cove Tunnel being a case in point.
The predicted patronage for the $1.6 billion roadway was
overestimated. This was a salutary lesson that cost its owner and
operator, Connector Motorways dearly, and it was placed into
receivership earlier this year.
Business is risky and that is unavoidable.
"Some investors have learnt hard lessons about being overly
ambitious regarding the patronage of new roads. However that
"There are plenty of examples of successful PPPs such as the
M7 Westlink in Sydney and the Peninsula Link project in Victoria.
For Peninsula Link a revised model was adopted where the private
sector investor component is largely taken from superannuation
funds. This is a positive development.
Some investors have
learnt hard lessons about
being overly ambitious
regarding the patronage of
new roads. However that
does not mean that PPPs
are wrong. You have to get
the figures right and make
sure that the analysis is not
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