Effective infrastructure planning and delivery
are critical to the state’s future prosperity and liveability.
Government introduced the High Value High Risk (HVHR) process to
address systematic weaknesses undermining agencies’ performance in
managing major projects.
VAGO’s June 2014 HVHR audit called for the
Department of Treasury and Finance (DTF) to apply the HVHR process
to unsolicited proposals where the private sector approaches
government with a proposal to build infrastructure and/or provide
DTF has not consistently applied the HVHR
process to unsolicited proposals. DTF’s guidance falls short of
ensuring a rigorous assessment of the likely benefits of
unsolicited proposals, and of providing the transparency needed to
enable affected stakeholders and the wider community to understand
the full impacts.
Applying the HVHR process to the CityLink
Tulla proposal has not resulted in the information underpinning
this project’s approval comprehensively meeting DTF’s better
In contrast, the way in which the HVHR process
was applied to the Cranbourne Pakenham interim offer was much
better. However, it remains unclear how the absence of elements
essential for defining and realising benefits, such as a cost
benefit analysis and benefit management plan, would have been
addressed to adequately inform government's consideration of a more
detailed final offer.
My recommendations are designed to address
deficiencies in how the HVHR process is applied to proposals and to
improve how agencies scrutinise project benefits, assess funding
options and engage affected stakeholders when informing government