DELIVERING AN INFRASTRUCTURE PLAN FOR QUEENSLAND - Directions Paper June 2015

 
Department of Infrastructure, Local Government and Planning

 DELIVERING AN
 INFRASTRUCTURE
 PLAN FOR
 QUEENSLAND
Directions Paper
June 2015
01
        MINISTERIAL FOREWORD
   02   INTRODUCTION
  04    WHAT IS THE STATE INFRASTRUCTURE PLAN?
  06
        WHERE HAVE WE COME FROM?
   10   CURRENT ENVIRONMENT
   13   INFRASTRUCTURE OBJECTIVES
          • DELIVERING PROSPERITY AND LIVEABILITY

          • INFRASTRUCTURE THAT
            SUPPORTS GROWTH

          • INFRASTRUCTURE THAT CONNECTS OUR
            COMMUNITIES

          • PROVIDING SUSTAINABILITY AND RESILIENCE

   15
        FUTURE INFRASTRUCTURE DIRECTIONS
          1. PLANNING AND ASSESSMENT

          2. FUNDING AND FINANCING

          3. PROCUREMENT AND DELIVERY

          4. EFFICIENT USE AND MANAGEMENT

   18
        INFRASTRUCTURE PIPELINE
          • WHAT TYPE OF INFRASTRUCTURE WILL BE IN THE PIPELINE

   20   NEXT STEPS: DELIVERING THE STATE
        INFRASTRUCTURE PLAN
   21   YOUR FEEDBACK IS INVITED ON
        THE DIRECTIONS IN THIS PAPER

CONTENTS
Ministerial
foreword

The Palaszczuk Government       this important pipeline of
is committed to delivering      projects.
a State Infrastructure Plan
                                But while we undertake
that improves the liveability
                                the important work
and productivity of our
                                of developing a State
state.
                                Infrastructure Plan – we
We understand that              will not stand still. Our
infrastructure investment       government continues to
underpins economic growth       advance important capital
and generates jobs.             works projects that drive
                                our state’s economy.
Infrastructure projects also
create a lasting legacy for     I look forward to working
Queenslanders – connecting      with all stakeholders
our businesses, services        throughout this process to
and people.                     create a State Infrastructure   JACKIE TRAD MP
                                Plan that secures a             Deputy Premier
This directions paper           prosperous future for all
outlines our broad              Queenslanders.
approach to delivering our                                      Minister for Transport,
commitment to develop                                           Minister for Infrastructure,
the State Infrastructure                                        Local Government and Planning
Plan, and provides an                                           and Minister for Trade
opportunity for you to give
feedback to government
on your expectations for

                                                                                                1
Introduction
    Infrastructure underpins a prosperous economy and
    modern society. The challenge for governments is
    planning, funding and delivering infrastructure for
    growth and change in a future that isn’t certain.

      With greater demand on their
      revenue, governments are
      exploring innovative funding
      approaches, optimising their
      capital and forging strategic
      partnerships.
      Infrastructure can increase
      productivity through the
      efficient delivery of services
      like supplying water or energy,
      or transporting people and
      products. Infrastructure can
      also improve community
      outcomes through the delivery
      of better hospitals, schools and
      community safety facilities.
      When planning for our future
      it’s important our focus is on
      these services and the needs and
      expectations of Queenslanders.
      For three years, Queensland
      has been without an integrated
      state-wide infrastructure plan to
      help industry plan for skills and
      workforce needs and to guide
      infrastructure investment.

2
In response, the Queensland
Government will fill this void by
delivering a State Infrastructure
                                    The government
Plan by early 2016. The
government is committed             is committed to
to building confidence in
Queensland, creating jobs,          building confidence
growing our economy,
improving liveability, and
providing certainty to industry.
                                    in Queensland,
The purpose of our State            creating jobs,
Infrastructure Plan is to:

 • Set strategic direction
                                    growing our
   and foster innovation in
   government’s planning,           economy, improving
   investment and delivery of
   infrastructure                   liveability, and
 • Identify the anticipated
   service needs and                providing certainty
   infrastructure investment
   opportunities for a
   prosperous Queensland
                                    to industry.
 • Develop a sustainable
   and credible pipeline of
   investment for industry,
   drawing on the independent
   advice of Building
   Queensland and input from
   government agencies

 • Provide context to enable
   greater coordination
   between public and private.

                                                          3
What is the State
     Infrastructure
     Plan?
    The State Infrastructure Plan will provide a
    coordinated and integrated approach to infrastructure
    planning, prioritisation, funding and delivery. This
    will be achieved by engaging with key stakeholders
    across government, industry and the community,
    and prioritising Queensland’s infrastructure needs
    from a whole-of-government perspective. While the
    pipeline will focus on public infrastructure and provide
    guidance about the government’s infrastructure needs,
    it is also expected that it will highlight opportunities
    for the private sector to engage with government on
    finding creative solutions for infrastructure delivery
    and in doing so, help generate confidence.

    Based on robust planning and value for
    money, the plan will ensure better use of
    existing assets and better allocation of
    new investment.

4
It is proposed that the State Infrastructure Plan
 cover three key elements:

   1    INFRASTRUCTURE
        OBJECTIVES:
        Outlines why
                              2       FUTURE
                                      INFRASTRUCTURE
                                      DIRECTIONS:
                                                              3      AN
                                                                     INFRASTRUCTURE
                                                                     PIPELINE:

        infrastructure                Conveys how                    Highlights what
        is important to               Queensland’s                   infrastructure is
        our values and                infrastructure                 planned over the
        improving our way             challenges can                 next four years,
        of life.                      be addressed and               but also the future
                                      how infrastructure             infrastructure
                                      is planned and                 opportunities and
                                      delivered                      challenges over
                                                                     the next 15 years
                                                                     and beyond

                                Delivering prosperity

                                 and liveability

                       Planning and                   Funding and
                       assessment                     financing

Providing                                                               Infrastructure

sustainability                                                          that supports

and resilience                                                          growth

                       Efficient use                  Procurement
                       and management                 and delivery

                                Infrastructure

                                that connects

                                our communities

                                                                                           5
Where
     have we
     come
     from?
    Infrastructure planning and       were aligned with the
    provision in Queensland is        State Budget.
    becoming more complex.
    In this environment the           At a regional level, the
    need for optimisation             South East Queensland
    and prioritisation of             Infrastructure Plan and
    infrastructure is increasingly    Program was introduced
    important. We have seen           in 2005, with subsequent
    sustained population              yearly updates until 2010,
    growth, uneven growth in          with a view to better
    the resources sector, and         aligning land-use planning
    the impacts of the global         and infrastructure planning
    financial crisis. We’ve           activities. Infrastructure
    also seen policies of fiscal      challenges in regions outside
    restraint across jurisdictions.   of the south east were
    In Queensland we’ve had           incrementally acknowledged
    to deal with responses to         through infrastructure
    significant natural disasters     components of the relevant
    such as droughts and flood        regional plans.
    events. All of this has
    brought the importance of
    sustainable infrastructure
    provision into stark relief.
    In 2001, the Queensland
    Government released
    its State Infrastructure
    Plan: Strategic Directions
    report to improve the way
    government planned and
    provided infrastructure.
    This was followed by annual
    implementation plans which

6
In 2011, a Queensland            Some of the challenges for
Infrastructure Plan was          future infrastructure plans
prepared, replacing the          could include:
infrastructure sections
of regional plans. An             • Use of alternative
important step in returning         funding approaches
to a state wide focus,
although delivered at a           • Attracting and building
time when markets were              confidence for private
still recovering from the           investors
Global Financial Crisis and
                                  • Adoption of modern
as Queensland was focused
                                    and efficient approaches
on rebuilding after the flood
                                    to procurement, with
events of early 2011.
                                    considered apportioning
An integrated whole of              and sharing of risk
government infrastructure
plan has not been released        • Identification of better
by the Queensland                   ways to preserve
Government since that               and maximise the
time, raising concerns              benefits of our existing
across industry over the            infrastructure portfolio
direction of infrastructure in
Queensland.                       • Integration with land-
                                    use planning to improve
An important function of            use while reducing the
infrastructure planning is to       investment needed for
build confidence and provide        new infrastructure.
clear direction for industry
to support effectively           And just as importantly,
and efficiently delivered        infrastructure planning
infrastructure through           should provide the flexibility
appropriate workforce            for government to respond
planning.                        to those challenges in a
                                 way that achieves value
Infrastructure planning          for money and directs
should also provide              investment to where it is
certainty to industry while      most needed.
encouraging innovation
in addressing the
infrastructure challenges
facing Queensland.

                                                                  7
2000                                                                     2005

    Release of State       Release of State         Release of South       Release of South      Release of South
    Infrastructure         Infrastructure Plan:     East Queensland        East Queensland       East Queensland
    Plan: Strategic        Implementation           Infrastructure Plan    Infrastructure Plan   Infrastructure Plan
    Directions             Plan                     and Program            and Program           and Program
    2001                   2002 / 2003              2006 - 2026            2008 - 2026           2009 - 2026

    Release of State       Release of South         Release of South       Establishment of      Requirement for
    Infrastructure Plan:   East Queensland          East Queensland        Infrastructure        Local Government
    Implementation Plan    Infrastructure Plan      Infrastructure Plan    Australia             Priority
    2001 / 2002            and Program              and Program            2008                  Infrastructure Plans
                           2005 - 2026              2007 - 2026                                  2009

        In addition to developing the        • Assist departments to
        State Infrastructure Plan,             develop business cases
        the government has already             for infrastructure
        delivered on one of its key            projects with an
        election commitments                   estimated capital cost
        - to establish Building                between $50 million and
        Queensland.                            $100 million
        Building Queensland’s role           • Lead the preparation
        is to:                                 of business cases for
                                               infrastructure projects
         • Provide independent,                with an estimated capital
           expert advice on                    cost of $100 million or
           infrastructure related              above
           matters
                                             • Develop a pipeline of
         • Develop a robust and                priority projects for the
           transparent project                 government to consider
           assessment framework
           taking into account the           • Where directed lead
           costs and benefits of               the procurement and
           proposals                           delivery of projects.
         • Evaluate proposals
           for new and existing
           infrastructure

8
2010                                                                          2015

Release of South      Establishment            Development of the         Release of            Release of National
East Queensland       of Projects              Queensland Plan 2013       InfrastructureQ       Infrastructure Audit
Infrastructure        Queensland                                          Directions            2015
Plan and Program      2012                                                Statement
2010 - 2031                                                               2014

Release of the     Establishment      State Planning        Release of            Establishment       Requirement
Queensland         of                 Regulatory            Productivity          of Building         for Local
Infrastructure     Infrastructure     Provision (adopted    Commission            Queensland 2015     Government
Plan 2011          Queensland         charges) 2012         Report on Public                          Infrastructure
                   2012                                     Infrastructure                            Plans 2016
                                                            2014

       Building Queensland’s role is to
       provide independent, expert advice
       on infrastructure matters including
       leading the preparation of rigorous
       business cases, which take into account
       cost- benefit analysis and community
       benefits.

                                                                                                                       9
Current
      environment
     Queensland is not alone in facing many of today’s infrastructure challenges. In preparing the State
     Infrastructure Plan, we will draw on the work of other key players to understand and respond to
     emerging drivers of change. A snapshot of some of this commentary is provided below.

     Business
     Council
     of Australia
     The BCA has called for:

      • The development                 • Appropriate sharing of
        of national markets               costs and risks between
        for transport, water,             government and the
        electricity and                   private sector
        communications based on
        private investment and          • The elimination of
        user charging                     regulatory impediments
                                          to the efficient use of
      • Long-term strategic               existing infrastructure
        planning of cities and
        regions that identifies         • Regular and transparent
        future land use and               audits and measurement
        infrastructure needs              of service performance

      • Prioritisation of               • Reducing the costs of
        public infrastructure             infrastructure provision
        investments that are              through improving
        linked to strategic               project design and
        plans and subject                 management, more
        to independent and                efficient processes for
        transparent cost-                 development assessment
        benefit analysis                  and approval and lifting
                                          workplace productivity.
      • A rolling pipeline of
        public infrastructure          http://www.bca.com.au/policy-
        investments                    agenda/infrastructure

10
Public                            Australian
Infrastructure                    Infrastructure
- Productivity                    Audit -
Commission                        Infrastructure
Suggested reforms include:        Australia
 • More thorough                  Selected findings
   consideration of               of the Audit:
   alternatives to
   infrastructure provision        • Rigorous project                • Government funding
                                     selection to boost                alone is unlikely to be
 • Improved project                  economic activity and             sufficient to provide
   selection                         support productivity              the infrastructure that
                                     growth                            Australia requires.
 • Pricing reform for those                                            Maintaining or
   areas of infrastructure         • Australia needs                   strengthening conditions
   that are already                  integrated infrastructure         to facilitate private
   amenable to it                    and land-use planning,            sector investment in and
                                     across all levels of              operation of Australia’s
 • A clearer idea about the          government                        infrastructure networks
   pitfalls and lessons of                                             is fundamentally
   different funding and           • Ongoing commitment to             important
   financing models                  engage communities is
                                     important                       • Australia would benefit
 • Privatisation, where it                                             from a strong and
   improves investment and         • Improved corridor                 consistent pipeline of
   operational efficiency            protection for transport          future infrastructure
                                     and other linear                  projects. Without this,
 • The development of                infrastructure (to                there is uncertainty and
   greater procurement               minimise construction             less likelihood of a well-
   competencies, and                 costs)                            resourced environment
   introduction of cost                                                for project procurement.
   reducing tender process         • Ineffective and
   improvements                      inconsistent                   http://www.infrastructureaustralia.
                                     regulation has had             gov.au/policy-publications/
 • The adoption of                   adverse outcomes for           publications/Australian-
   procurement guidelines            infrastructure users           Infrastructure-Audit.aspx
   to provide incentives
   for better industrial           • Current arrangements
   relations arrangements.           for the funding of land
                                     transport represent
http://www.pc.gov.au/inquiries/      the most significant
completed/infrastructure/report      opportunity for public
                                     policy reform in Australia’s
                                     infrastructure sectors

                                                                                                          11
Northern                              2015 Major
     Australia                             Projects Report:
     Infrastructure                        Queensland
     Audit -                               Engineering
     Infrastructure                        Construction
     Australia                             Outlook –
     Key findings include:                 Queensland
      • Transport infrastructure           Major
        for resource development
        hinges on major customer
                                           Contractors
        demand                             Association
      • Roads servicing the
        dispersed cattle industry          Recommendations:
        can benefit from better
        flooding resilience                • Public sector                 • That industry and
                                             infrastructure                  government continue
      • Road maintenance is                  investment plans are            to tackle risks to
        critical to facilitate               supported by proper and         productivity and
        heavier vehicles and                 transparent cost-benefit        competitiveness
        renew ageing pavements.              analyses
        Maintenance backlogs are                                           • That industry and
        a feature of the northern          • Governments should              governments support
        road system                          not rule out privatising        research to identify
                                             assets (as part of a suite      potential skill
      • Major northern centres               of funding solutions for        mismatches and gaps
        can benefit from both                new infrastructure)
        road upgrades and public                                           • That improvements are
        transport planning                 • That the public sector          made by governments
                                             fundamentally reforms           and statistical agencies
      • Northern Queensland
        power prices for industry            funding arrangements            to improve the depth and
        use are comparatively                for the roads sector            quality of data pertaining
        high                                                                 to the construction
                                           • That governments                industry.
      • Many northern centres                continue to encourage
        will need water supply               greater private              http://www.qmca.com.au/files/
        upgrades or operational              sector investment            documents/QMCA_MPR2015_
        improvement                          in infrastructure            Final_2_LOWRES.pdf
                                             through streamlined
      • Irrigated agricultural               administrative and
        development will call for            approval processes
        additional water supplied,
        as well as supporting              • That state and federal
        power and transport                  governments reform the
        infrastructure.
                                             procurement process to
     http://www.infrastructureaustralia.     help reduce bid costs
     gov.au/policy-publications/
     publications/Northern-Australia-
     Infrastructure-Audit.aspx

12
Infrastructure
 objectives
The Queensland Government will deliver a better way for Queensland, creating jobs and
a diverse economy, delivering quality frontline services, protecting our environment,
and building safe, caring and connected communities. Accepting that infrastructure is a
fundamental building block for our society, we need to agree on what we want out of our
infrastructure investment if we are to put ourselves on the right course.
The following infrastructure objectives strive to articulate why infrastructure is important
to our values and improving our way of life. These objectives will be aligned with community
expectations through consultation and will then guide the Queensland Government’s
infrastructure priorities over the coming decades.

DELIVERING            INFRASTRUCTURE           INFRASTRUCTURE             PROVIDING
PROSPERITY AND        THAT SUPPORTS            THAT CONNECTS              SUSTAINABILITY
LIVEABILITY           GROWTH                   OUR COMMUNITIES            AND RESILIENCE

                                as creating jobs. Investment     new infrastructure and
Delivering                      in critical community            ongoing maintenance
prosperity and                  infrastructure, like health      funding being extremely
                                and education assets,            well targeted on the right
liveability                     improves overall community       projects, and leverage the
                                well-being. Infrastructure       benefits of the digital age.
We would like to see our        investment needs to              We need to see capital
infrastructure spend            recognise and keep pace          optimised and we need
achieve maximum                 with change and recognise        to see innovative funding
economic and social return      that some communities            approaches.
on investment.                  require specific investment
                                to address social, economic,     Our challenge is to spend
Infrastructure investment       cultural and locational          public money wisely and to
drives competitiveness          disadvantages.                   better work with the private
through increasing the                                           sector through strategic
productivity of both the        With limited available capital   partnerships to deliver those
public and private sectors,     it is imperative that every      targeted projects where we
reducing the costs of doing     investment made maximises        get the maximum benefit.
business, diversifying the      economic and social return.
means of production as well     To do this, we need to see

                                                                                                 13
Infrastructure                  Infrastructure  Providing
     that supports                   that connects   sustainability
     growth                          our communities and resilience
     Our growth-supporting           It is important that our                   Our infrastructure demand
     infrastructure should be        communities are well                       should not outstrip our
     integrated with land-use        connected by having                        capacity to deliver, is built
     planning and provided in a      the internal and linking                   to be fit for purpose and can
     timely manner.                  infrastructure they need to                withstand shocks.
                                     function efficiently.
     Around two million extra                                                   Economic development
     people are projected to be      The Queensland                             and community wellbeing
     living in Queensland by 2031,   Government is committed                    is underpinned by efficient
     with most of the growth in      to building safe, caring and               and reliable infrastructure
     South East Queensland 1.        connected communities.                     networks and assets. A
                                                                                pipeline of infrastructure
     To support the current          To make this happen,                       projects and major
     and future prosperity of        Queensland’s communities                   maintenance schedules (at the
     Queensland’s population,        also need access to a                      procurement stage or planned
     the State requires              broad range of private and                 in the short-term), supports
     infrastructure that supports    public services including                  efficient workforce planning
     population growth,              secure and reliable access                 and the deployment of the
     improves communities            to affordable energy and                   right skills at the
     and contributes to efficient    water, good schools and                    right time.
     supply chains – supporting      health infrastructure. We
     productivity and creating       also need an integrated                    Resilience is built into
     jobs.                           transport network that                     infrastructure networks
                                     efficiently moves freight and              which lessen the social and
     Queensland needs to be          people within and between                  economic costs associated
     carefully planning for the      communities. Understanding                 with loss of critical
     infrastructure needs of         supply chains will be critical             infrastructure during
     our growing population.         to our future growth. For                  and after extreme events
     The best way of doing this      example, connections                       including natural disasters.
     is with careful integration     between mines and ports
     with our land-use planning      must be optimised with                     The challenge is to even
     approaches, so that the         energy, water and transport                out the peaks and troughs
     infrastructure is provided      correctly sequenced.                       associated with cyclical
     when the growing                                                           investment and ensure
     population needs it. The        Lives and lifestyles of                    that fit for purpose
     key to this is to get the       Queenslanders can                          infrastructure is built.
     timing and sequencing of        be improved through
     infrastructure provision        increasing options and                     We also need to ensure
     right.                          capacity to use the internet,              the infrastructure we are
                                     digital technologies and                   providing is designed and
     Infrastructure must             community services.                        built to an appropriate
     also be responsive to                                                      service level standard and in
     digital disruption which        We need to address the                     a way that the whole of life
     can radically increase          barriers that stop our                     costs of the asset are
     productivity and social         communities from being                     fully understood.
     wellbeing in ways we might      better connected.
     have only imagined.

                                                   1
                                                       Infrastructure Australia, Australian Infrastructure Audit, May 2015

14
Future
 infrastructure
 directions

                                               1
In recent times increasing demands on
government revenue within Australia
                                               Planning and assessment
and internationally has seen greater           – doing the right projects
scrutiny over the efficient provision of
public infrastructure. For example, the        2
Productivity Commission’s report on public
infrastructure called for an “urgent need      Funding and financing
to comprehensively overhaul processes          - with effective funding
for assessing and developing public
infrastructure projects”.
                                               3
The Queensland Government is committed
to building confidence and delivering better   Procurement and delivery
infrastructure outcomes in Queensland. It      – in an efficient way
has been listening to calls for a better way
forward. We have met our commitment
to establish Building Queensland, which        4
will undertake robust assessments of           Efficient use and management
infrastructure proposals and provide their
independent advice to the government. The      – then making the most of them.
opportunities and aspirations for better
infrastructure outcomes will continue in the
State Infrastructure Plan.                     The plan will be aspirational, providing
                                               a vision for the State Government’s
The State Infrastructure Plan will set a
                                               infrastructure direction. In achieving this,
strategic direction that fosters innovation
                                               the government will also need to consider
in planning, investment, delivery and use
                                               the best governance arrangements through
of infrastructure. The plan will challenge
                                               the infrastructure planning and delivery
traditional and decades old approaches and
                                               cycle. The Queensland Government will also
assumptions with the aim of revitalising
                                               pragmatically explore how we can begin
Queensland infrastructure direction in the
                                               realising the benefits of greater innovation.
following areas:

                                                                                               15
order at the right time        The use of public private
     1. Planning and                                                    partnerships will be
     assessment                         • How to reinstate a
                                          strong nexus between
                                                                        important where there are
                                                                        demonstratable whole of life
                                          land use planning and         benefits. The key is to work
     Selecting the right projects
                                          infrastructure planning       in a way that maximises
     for Queensland is one of
                                          to improve asset              private sector contributions
     the most critical phases in
                                          utilisation, infrastructure   and co-investments from
     the infrastructure lifecycle.
                                          alignment and delivering      other levels of government.
     Regardless of how well
                                          other objectives (e.g.
     a project is designed and                                          The State Infrastructure
                                          healthier lifestyles)
     delivered, the wrong project                                       Plan will advocate and
     will always deliver sub-                                           encourage the most effective
                                        • How to better use data
     optimal outcomes. Once                                             funding and financing
                                          gathering/analytics
     selected, the right projects                                       arrangements to deliver and
                                          for improved demand
     need to be correctly timed                                         maintain infrastructure. The
                                          forecasting, network
     and sequenced to                                                   Queensland Government
                                          optimisation and
     optimise investment.                                               would like to consider:
                                          identification of network
     “There are numerous                  inefficiencies (e.g. bottle
                                          necks/pinch points).           • Ways to attract and build
     examples of poor value
                                                                           confidence for private
     for money arising from
                                                                           investors and encourage
     inadequate project
                                                                           unsolicited proposals to
     selection, potentially costing    2. Funding and                      leverage private sector
     Australia billions of dollars.”
     (Productivity Commission          financing                           innovation in achieving
                                                                           government service
     Inquiry Report – Public
                                                                           objectives
     infrastructure, May 2014)         After selecting the right
                                       projects it is important          • Options for funding
     The government will strive        the government consider
     to promote innovation                                                 approaches (e.g. debt,
                                       the most effective funding          portfolio optimisation)
     and better informed               and financing method. In
     decision making through                                               and investigating the
                                       broad terms infrastructure          merits of funding
     the planning, design and          can be financed by either
     selection of projects,                                                mechanisms that better
                                       government or the private           align infrastructure
     including non-build solutions     sector although generally
     (e.g. technology). The                                                funding with revenue
                                       these are ultimately funded         from its beneficiaries (e.g.
     Queensland Government             through taxes or user
     would like to consider:                                               value-capture measures,
                                       charges.                            user charging)
      • Ways to attract                With appropriate
        innovative solutions           arrangements and risk             • Innovative ways to
        for delivering public          sharing the private                 incentivise the private
        services (i.e. real options    sector is capable of more           sector and correctly
        analysis) that might           efficiently delivering and          align incentives with
        reduce the need for            managing certain public             user expectations (e.g.
        costly investment in           services. However, private          service performance), but
        physical infrastructure                                            importantly assessing
                                       sector funding is done
        (e.g. asset utilisation,                                           the true costs of any
                                       on commercial terms,
        price signalling, digital                                          government guarantees
                                       so government must
        technology)                                                        and concessions
                                       consider the ultimate costs
      • How to better prioritise       to users/taxpayers. Not
                                                                         • Ways to advocate
        what sequence                  withstanding this, public
                                                                           appropriate risk
        infrastructure should be       private partnerships are
                                                                           apportionment and
        delivered in, so we do the     attractive for defraying
                                                                           cost analysis (to users
        right projects in the right    large investments.

16
and taxpayers) in               • How to manage larger          In some cases, successfully
  determining the most              contracts to provide more     maintaining our assets and
  effective method of               opportunities for smaller     maximising their benefits
  financing                         providers and greater         would provide a credible
                                    market competition for        alternative to delivering
 • Options to use in-               government projects           billions of dollars worth
   kind government                                                of new infrastructure. In
   contributions (e.g.            • How to ensure greater         considering the importance
   surplus land) to facilitate      coordination in the           of making the most of what
   government objectives            program sequencing to         we have, the government
   through public private           avoid damaging phases         would like to consider:
   partnerships.                    of under investment
                                    (e.g. skills loss) and over    • Options to better
                                    investment                       preserve our assets with
3. Procurement                      (i.e. inflated prices)           optimal maintenance and
                                                                     provision of appropriate
and delivery                      • Ways to involve industry
                                    early with up-front
                                                                     funding over the life of
                                                                     the asset
Procuring and delivering            market engagement
projects in the most efficient      to enable greater              • Opportunities for asset
and cost effective way has          innovation in the final          renewal and repurposing
the potential to significantly      solution, delivering             to extend the life and
reduce the cost to end users        cost savings and better          maximise the benefits of
and taxpayers.                      outcomes through                 existing investments (e.g.
                                    innovative designs (e.g.         increasing utilisation)
“There is significant scope         competitive dialogue)
to improve public sector                                           • How to design
procurement practices and         • How to better                    infrastructure to
lower bid costs to tenderers,       understand the impact            provide the flexibility
with potentially large              of delivery requirements         to accommodate future
benefits for project costs          and standards on project         needs, to support or be
and timing” (Productivity           costs for government.            adapted to changing
Commission Inquiry Report                                            community needs and
– Public infrastructure, May                                         minimising whole-of-life
2014)                            4. Efficient                        costs

Industry has long raised
concerns about the
                                 use and                           • Whether there are
                                                                     regulatory or policy
inefficiency of public sector    management                          impediments to the
procurement and delivery                                             efficient use of assets.
practices. The Queensland        With such a large existing
Government would like            infrastructure portfolio
to consider:                     we need to identify better
                                 ways of preserving and
 • How to adopt modern           maximising its benefits.
   and efficient approaches      Governments across
   to procurement, which         the world often focus
   aim to reduce the cost to
                                 their investment on new
   tenderers, and deliver
                                 infrastructure, neglecting
   better outcomes for
                                 existing infrastructure
   Queensland
                                 with sometimes
 • Ways to apportion and         disastrous results.
   share risk to parties best
   capable to manage
   the risks

                                                                                                  17
Infrastructure
      pipeline
     The Queensland                  To address these differing       Queensland’s future
     Government has reviewed         needs the government             challenges and opportunities
     various approaches to           proposes Queensland’s State      are, the government will
     infrastructure pipelines. It    Infrastructure Plan use          do more than simply
     is clear that infrastructure    two distinct approaches to       provide a list of potential
     pipelines with shorter time     communicating its priorities.    projects. We’d like to engage
     horizons and more detail                                         stakeholders in working
     suit some stakeholders such     For stakeholders interested      with us to address these
     as those in the construction    in Queensland’s immediate        infrastructure challenges.
     and engineering sectors.        priorities, like those looking
     Other stakeholders are          to support infrastructure        To achieve this, government
     seeking an indication of        delivery, the government will    proposes to highlight
     activity in the medium          provide a credible four year     specific challenges and
     to longer term horizons         pipeline of projects that are    opportunities over the next
     and an understanding            approaching procurement          15 years and beyond. While
     that governments are            and construction, along with     many will already have
     actively seeking to address     a list of projects currently     proposed solutions, we’d
     longer term infrastructure      underway.                        also like to foster innovative
     challenges.                                                      thinking in building
                                     For stakeholders looking         tomorrow’s Queensland.
                                     to understand where

                                    1-4 years                                   4-15+ years

            Construction                                   Future
            and procurement                                opportunities
            opportunities                                  and challenges

18
What type of                       The State Infrastructure Plan will focus on regionally
                                   significant economic and social infrastructure led by the State
infrastructure                     Government (including Government Owned Corporations).
                                   This can include:
will be in the
pipeline?

ROAD                        RAIL                        PORT                       AIRPORTS

ENERGY                      WATER                       HEALTH                     EDUCATION

DIGITAL                     SAFETY                      ART & CULTURAL             RECREATIONAL

The private sector and             In some instances the plan       State infrastructure (for
other levels of governments        may incorporate other            planning purposes).
also make significant              infrastructure, particularly
contributions to Queensland’s      where this is beneficial in      Infrastructure declared a
infrastructure. This will          planning State Government        ‘coordinated project’ by the
be recognised in the               infrastructure. For example,     Coordinator-General will
government’s infrastructure        where there is a significant     form the basis of non-state
plan without duplicating these     State contribution (for          government projects included
stakeholder’s infrastructure       budgetary purposes) or it        in the plan, for the same
plans and proposals.               provides context to other        reasons they were declared.

                                                                                                     19
Next steps:
      Delivering the State
      Infrastructure Plan
     Queensland’s first State
     Infrastructure Plan in over
     three years will be released
     in early 2016. This will follow
                                       Queensland’s first
     targeted consultation in late
     2015. The government will
     annually update this plan in
                                       State Infrastructure Plan
     line with the budget cycle
     and with the independent          in over three years will
     advice of Building
     Queensland.
                                       be released in early 2016
     The development of the
     State Infrastructure Plan
     will not delay the State
     Government’s investment
     in infrastructure. State
     government agencies are
     continuing to advance
     individual infrastructure
     projects and bring them
     to market.

                                               State Infrastructure Plan - Timeline

        Directions          Comments          Draft          Final plan   First annual

          paper                close      plan release        release       update

          release                        for consultation

          NOW               1 JUL 2015     LATE 2015        EARLY 2016    MID 2017

       We are here

20
Your feedback is invited on the
directions in this paper

The Queensland Government would welcome feedback
on its proposed direction for the State Infrastructure Plan.
Whether you’re an organisation where our plans need
alignment or a company looking to get involved or invest,
we’d value your feedback!

 • How has your organisation used previous government
   infrastructure plans?

 • How does the proposed direction for the State
   Infrastructure Plan align with your expectations?

 • How do the government’s infrastructure objectives
   align with your priorities?

 • What are the top policy issues and opportunities the
   plan could respond to?

 • How can the plan encourage innovation in planning
   and delivery of infrastructure?

 • How can the plan attract greater private sector
   investment in Queensland’s infrastructure?

Comments would be appreciated before 1 July 2015 and can
be emailed to infrastructurepolicy@dilgp.qld.gov.au

                                                               21
Department of Infrastructure, Local Government and Planning

© The State of Queensland (Department of Infrastructure, Local Government and Planning) 2015.

Published by the Queensland Government, June 2015, 63 George Street, Brisbane Qld, 4000.
The Queensland Government supports and encourages the dissemination and exchange of
information. However, copyright protects this document. The State of Queensland has no
objection to this material being reproduced, made available online or electronically but only if
it is recognised as the owner of the copyright and this material remains unaltered. Copyright
enquiries about this publication should be directed to the Department of Infrastructure, Local
Government and Planning, by email to infrastructurepolicy@dilgp.qld.gov.au
or in writing to PO Box 15009, City East, Qld 4002

Department of                       Level 2, 63 George Street, Brisbane QLD 4000
Infrastructure, Local               PO Box 15009, City East, QLD 4002
Government and Planning
                                    tel - 13 QGOV (13 74 68)
                                    www.dilgp.qld.gov.au
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