The document discusses emerging risks and opportunities in the school infrastructure sector in Australia. It notes that the population is growing and becoming more urbanized, increasing the need for more school places. There is significant investor interest and capital available for social infrastructure like schools, but the current project pipeline is not meeting demand. Key risks discussed include keeping up with demographic changes, lack of past planning, flexibility in school design, and historical underinvestment in maintenance. Enablers of improved school infrastructure include better planning, stakeholder engagement, having a clear long-term vision and pipeline of projects, and streamlined procurement processes.
David Donnelly - School Infrastructure Summit 2018
1. 1
Allens is an independent partnership operating in alliance with Linklaters LLP.
School Infrastructure Summit 2018:
Delivering Essential School Infrastructure
David Donnelly
Partner, Head of Infrastructure – Allens
2. 2
Allens is an independent partnership operating in alliance with Linklaters LLP.
Context
3. 3
• Growing Population:
11.8m in 30 years – equivalent to adding a city the
size of Canberra every year .
Canberra has 150 schools; 5 hospitals; and 2
prisons
• Urbanising Population:
The ‘vertical population’ – increasing density in areas
without ‘easy’ school sites
Need for integrated planning
• Demographics (2017 ABS Statistics):
Total student enrolments were up 1.3% (50,999) and
the government schools share was up 1.2% (65.6% )
on the previous year's figure.
30 New Schools (up 0.3%) –majority independent.
Student retention rate to year 12 up 10.2% over the
previous decade.
Demographics
4. 4
• Infrastructure Investment Report 2018:
Survey of investors who currently own or manage
infrastructure investments around the world totalling
more than AUD$380 billion.
‘Social infrastructure made the biggest jump with
76 per cent of investors interested in social
infrastructure assets, up from 42 per cent in
2017.’
Observations:
o No shortage of capital interested in the asset class
o The current pipeline of projects is not meeting the
increase in demand for student places or the
demand for investable projects
o Interest in ‘khaki projects’ – mix of greenfield
development and brownfield service offering.
Investor Sentiment
5. 5
Australian Curriculum & School Assets
• Australian Curriculum
Annual Reporting (with change
balanced against stability)
Pressure through NAPLAN results?
Impact on Pedagogy and design?
• School Assets
Fit for Purpose – over the longer term
Matching schools with demand
o Vertical schools
o Reservations and planning
Community Assets? Additional Uses &
Stakeholders
Size of opportunity – currently 9,444
schools across Australia (and growing)
6. 6
Allens is an independent partnership operating in alliance with Linklaters LLP.
‘Emerging risks’
Allens is an independent partnership operating in alliance with Linklaters LLP.
7. 7
‘Emerging Risks’
• Demographics
More students, particularly in urban settings. (NSW predicting
21% growth to 2031, 80% of which will be in Sydney)
Students remaining in school for longer
• Needs / Expectations
• Changing teaching and community expectations
• Technology
Maintaining (improving) educational outcomes
Addressing societal and community challenges
• School Infrastructure
Increasing urbanisation – will drive additional community uses
Access to land / sites – particularly in areas of densification
Large (and growing) existing stock - maintenance challenge
8. 8
‘Emerging Opportunities (or at least not risks)’
Provides certainty
Support from private sector capital (and builders)
• Non-controversial asset class (compare prisons!)
• Opportunity to improve:
• learning environment
• educational outcomes
• community outcomes
• the economy – ‘building the knowledge economy
Opportunity to improve quality of existing stock
Opportunity to improve planning regime
• Demographics
More students, particularly in urban settings. (NSW predicting
21% growth to 2031, 80% of which will be in Sydney)
Students remaining in school for longer
• Needs / Expectations
• Changing teaching and community expectations
• Technology
Maintaining (improving) educational outcomes
Addressing societal and community challenges
• School Infrastructure
Increasing urbanisation – will drive additional community uses
Access to land / sites – particularly in areas of densification
Large (and growing) existing stock - maintenance challenge
9. 9
Allens is an independent partnership operating in alliance with Linklaters LLP.
Key Delivery and Operational
Risks
Allens is an independent partnership operating in alliance with Linklaters LLP.
10. 10
Key Delivery and Operational Risks
• Delivery
Speed – challenge of keeping up with demographic change
Planning (Land) – lack of past planning
Design – long term asset / changing needs
School Year – completion
Fit for Purpose – flexibility
• Operational
Historical under-investment - backlog
Consistency across School Districts – PPP vs other
Role of Principal / School – where maintenance is
outsourced
Community use – cleaning / damage / availability
Innovation
11. 11
Allens is an independent partnership operating in alliance with Linklaters LLP.
‘Enabling’
Allens is an independent partnership operating in alliance with Linklaters LLP.
12. 12
Enabling Behaviour
• Planning
What is needed?
What needs to be done to ensure that happens
(reservations; requirements on developers etc)
• Stakeholders
Teachers / Parents / Voters – need to ‘buy in’ to the vision
• Engagement
Pipeline (certainty)
Clearly articulated outcomes (not specifications)
Fit for purpose procurement (likely various methods) and
packaging
• Transactions
Consistent and reasonable risk allocation
Quick and outcomes focused
14. 14Allens is an independent partnership operating in alliance with Linklaters LLP.
Editor's Notes
Thanks for the introduction.
I intend to speak for around 30 minutes. Happy to take questions as I go or at the end.
Starting with context as it makes sense to know what we are talking about. The topic presumes there is a need for delivering additional prison infrastructure but is that the case?
Looking outside the prison. Growing + Urbanising Population – increasingly mobile; immigration; changing demographics and needs. Larger pool to draw from; more congested and possibly disconnected society?
Looking inside the prison. Key changes are cohort based – more remandees and more drug-related sentences.
Starting with context as it makes sense to know what we are talking about. The topic presumes there is a need for delivering additional prison infrastructure but is that the case?
Looking outside the prison. Growing + Urbanising Population – increasingly mobile; immigration; changing demographics and needs. Larger pool to draw from; more congested and possibly disconnected society?
Looking inside the prison. Key changes are cohort based – more remandees and more drug-related sentences.
So what makes up the circle?
In light of the context we’ve just discussed, what does necessary prison infrastructure look like?
So what makes up the circle?
So what makes up the circle?
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INSTRUCTIONS TO INSERT A TITLE SLIDE IMAGE
Select an aerial image from Clip Art library.
Select the image by clicking onto it, locate and select the Arrange button and choose Send Backward. This will send the image to the back and bring text boxes and chevron to the front ready for you to insert a title.
CREATE A NEW SLIDE
To create a new slide in your presentation navigate to Home > Slides > New slide click on the lower half of this button to show the range of layouts available in your template.
Choose the layout that will best represent your content.