Australia has maintained its position since 2011 as the top scoring PPP environment among the Asia-Pacific economies covered by the Infrascope. The country’s guidance on the PPP process is widely regarded as presenting best practice, and has been influential on the policy development of other Asian governments. Project pipelines have been healthy, especially in the most active sub-national states of Victoria and New South Wales. And the failure rate for PPPs is quite low. Where contracts have fallen through to date, state agencies have intervened fast enough to ensure that delivery of public services was unaffected.

Powerful central and sub-national policies and institutions, and a good track record of projects, make Australia a very reliable investment environment for PPPs. A current reluctance to invest public funds in capital projects had increased the motivation of local governments to attract private finance into infrastructure. Under the Australian Constitution, economic and social infrastructure planning and delivery are primarily state and territory government responsibilities, with only a small minority of infrastructure PPPs procured centrally. While sub-national governments must comply with the national policy framework published by Infrastructure Australia, the treasury departments of some states have also issued their own PPP guidelines, covering topics such as evaluation criteria and risk allocation in further detail.

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