This presentation was made by Andrew JAGGERS, Australia, at the 11th Annual Meeting of the OECD Network of Senior PPP and Infrastructure Officials held at the OECD, Paris, on 27 March 2018
2. 2
Overview
• Asset Recycling Initiative
• Global Infrastructure Hub
• Key Government Initiatives delivered through Government
Business Enterprises:
o Snowy Hydro Limited
o National Broadband Network Co Limited
o Australian Rail Track Corporation
3. 3
Asset Recycling Initiative
• The Asset Recycling Initiative (ARI) is a
program that provides incentive payments
from the Australian Government to state
governments that reinvest asset sale
proceeds to fund new infrastructure.
• The incentive payment is 15 per cent of
the asset sale proceeds reinvested in
infrastructure.
• The Australian Government signed
agreements with the NSW, ACT and NT
states governments, worth $2.3 billion
(AUD) in incentive payments.
A clear net positive benefit.
An enhancement to the long-term
productive capacity of the
economy.
Where possible, private sector
involvement in both the funding
and financing of the project.
To be eligible for the ARI incentive payment, the
infrastructure project must demonstrate:
4. 4
Global Infrastructure Hub
Independent data and analysis of the global appetite and opportunities for
infrastructure investment and the specific blockages to infrastructure
development.
‘Capability framework’, a tool to assess country level infrastructure
environments.
A knowledge platform for government procurement professionals to connect
with international peers for advice and support.
A suite of guidance on leading practices that enables governments to take
projects to market faster and more cost-effectively.
A project pipeline to showcase investment ready projects to multilateral banks
and private investors.
5. 5
Infrastructure and investing in Australia
The way in which the Australian Government partners with the private
sector to deliver infrastructure has evolved over time, reflecting the
changing expectations and risk appetite of private sector participants.
Government Business Enterprises (GBEs) are commercially focused
Government-owned businesses established to fulfil a Commonwealth
Government purpose. The Australian Government’s relationship with
GBEs include:
• A strong interest in the performance and financial returns of the GBE.
• Reporting and accountability arrangements that facilitate best practice
governance and active oversight by the Commonwealth.
• Action by the Commonwealth in relation to the strategic direction of its
GBEs where it prefers a different direction from the one proposed.
7. 7
Snowy Hydro Limited
The Australian Government announced it will purchase Snowy Hydro ($6 billion AUD) from the
NSW and Victorian state governments and have sole ownership of Snowy Hydro. Key terms of the
purchase include:
A broad commitment to invest the proceeds in
productive infrastructure projects.
There will be no change to current arrangements on
water issues.
Snowy Hydro would have to remain in public
hands.
9. 9
National Broadband Network Co Limited (NBN)
NBN has the flexibility to operate commercially with a
focus on delivering fast broadband as quickly and
cost-effectively as possible.
By making the network available to more consumers
sooner, it is unlocking greater digital productivity
potential while keeping project costs down and home
internet bills affordable.
NBN continues to evolve its pricing model to facilitate
the take-up of higher internet speeds and secure a
sustainable long-term business model for both the
company and the telco sector.
10. 10
Australian Rail Track Corporation
Time saving
Reducing supply
chain costs
Improving access
to/from regional
markets
Creating jobs
Improving linkages
and sustainability
Connecting cities,
farms, mines and
ports