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Roger Black, Executive Director, Infrastructure Association of Queensland delivered this presentation at the 2013 QLD Transport Infrastructure conference. Delivering "better infrastructure and planning" is key to the State Government’s plan of a four pillar economy to get "Queensland back on track". As transport takes a leading role in strengthening the Queensland economy, there has never been a better time to review the transport projects and policy promoting the State's future productivity and prosperity. For more information about the annual event, please visit the conference website: http://www.statetransportevents.com.au/qldtransport
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INFRASTRUCTURE ASSOCIATION OF QUEENSLAND
Queensland’s peak infrastructure industry body
Represents Queensland’s infrastructure sector
Consulted by Government on infrastructure issues
Represented on Infrastructure Queensland (IQ)
Members include:
Constructors
Design firms
Banks
Accounting and legal firms
Project management firms
Communications firms
Advisory and consulting firms
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
Infrastructure industry
peak body
INFRASTRUCTURE ASSOCIATION OF QUEENSLAND
Networking events
Breakfast series
Forum series
Task forces
Economic infrastructure
Social infrastructure
Regional infrastructure
Infrastructure strategy
Infrastructure finance
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
Leads ideas development
in Queensland’s
infrastructure space
PRIORITIES FOR ACHIEVING BEST VALUE
Pipeline
Process
Private Sector engagement
Finance
Construction
Services
Maintenance
Capital recycling
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
Best value = Better
bang per dollar
LIFECYCLE CLOCK
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
12
6
3 9
Rising
costs.
Capacity
building.
Increasin
g activity.
Reducing
activity.
Cost
squeeze.
Capacity
shedding.
LIFECYCLE CLOCK (BOOM AND BUST)
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
12
6
3 9
Rising
costs.
Capacity
building.
Increasin
g activity.
Reducing
activity.
Cost
squeeze.
Capacity
shedding.
LIFECYCLE CLOCK (SMOOTHER ACTIVITY)
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
12
6
3 9
Rising
costs.
Capacity
building.
Increasin
g activity.
Reducing
activity.
Cost
squeeze.
Capacity
shedding.
PIPELINE
Consistent pipeline allows both Govt and industry to build skills, capacity
and capability
Confidence leads to:
Capacity building
Capacity retention
Skills development
Team retention
Unintended consequences
Capacity shedding
Loss of skills
Concept of a national infrastructure priority schedule
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
PIPELINE: COST PRESSURES
Poor pipeline
Peaks and troughs
Quiet periods
Frenetic periods
Cost pressures
Competitive pressures
Consistent pipeline
Builds confidence
Produces best value
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
PROCESS
Efficient & effective delivery underpinned by skills and capability of Govt. team
Linked to pipeline
Experience leads to better process
Experience built on learning
Smoother pipeline builds and retains experience
Provides career opportunities
Enables experience development
Consistency of Analysis
Process is not consistent nationally
Process may not be consistent across the state
Depoliticise the process
Cost benefit analysis
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
PROCESS
Promote strong focus on interactive processes
Between project teams and proponents
Validate and improve concepts
Improve efficiency
Promote consistent process
Avoid process for process sake
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
PROCESS
Focus on what is sought rather than what should be delivered.
Understand the difference between input and output
Focus on whole of life instead of the asset
More than just the deal
Avoid asymmetric risk allocation
Use probity as a tool and not a weapon
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
PRIVATE SECTOR ENGAGEMENT
Finance PPP Concession Economic infrastructure Outright sale
Construction Mostly undertaken by private sector
Services Increasingly done by private sector Encourage strong services sector
Maintenance Increasingly done by private sector
Capital recycling Opportunity to de-risk
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
CAPITAL RECYCLING
Government as
Enabler
Regulator
Facilitator
Govt can either
Undertake projects
Procure projects
Enable projects
Govt doesn’t have reputation for innovation, on time and on budget
delivery
Reviews support this view
Sell existing infrastructure and invest in new infrastructure
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
SUMMARY: THE KEYS TO BEST VALUE
Pipeline
Process
Maximum Private Sector Exploitation
I N F R A S T R U C T U R E A S S O C I A T I O N O F Q U E E N S L A N D
Exploit: make full use of and derive
benefit from, use to good advantage,
turn/put to good use, make the most of,
capitalise on, benefit from.
