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It also requires that asset management strategies and activities are integrated with resource allocation decisions. Total state sector excludes the public financial enterprise sector. It sets the scene for more detailed planning in the sub-regions of metropolitan Sydney. Infrastructure investment allocations to sectors beyond are indicative only. Non-commercial PTEs receive funding from the Budget for the majority of their infrastructure investment. The regional strategies for other areas of New South Wales identify sufficient residential, commercial and industrial land capacity to sustainably accommodate projected population growth. This represents an increase of The largest increase in the general government sector in the Budget is for infrastructure investment in education and training. It provides a clear indication of where future growth is expected to occur and where supporting infrastructure is needed. Agency planning and asset management. Expenditure on asset maintenance in is equivalent to 2. The Government appointed Boards of PTEs ensure they make appropriate and affordable investment decisions. This growth will drive demand for new and upgraded infrastructure. This percentage is estimated to remain at 2. Major investments completed, or due to be completed, in with estimated total cost include:. The existing 10 step procurement process is being rationalised to reduce the number of documents agencies need to reference during a procurement exercise. Slight variations between budgeted infrastructure investment and the actual outcomes reflect a range of factors including construction schedule adjustments due to weather conditions, prices varying from pre-tender estimates, as well as revisions to the scope of projects. These were budgeted as capital expenditure. The percentage of infrastructure investment in the PTE sector will level off to GFS policy areas do not always align with individual agency infrastructure investment budgets as an agency can provide a range of services that are classified into more than one GFS policy area. This approximates Chart 1. Such strategies include developing regulatory settings to encourage new private sector infrastructure investment, and demand management techniques such as price regulation to moderate peak demand on infrastructure. Despite this reduction, the total State capital program will remain at a historically high level as shown in Chart 1. Commercial PTEs receive the majority of their income from user charges. They are directed more at simplifying policy and procedures to enable the achievement of better quality up-front planning by NSW agencies in their formulation of funding proposals, improving coordination between agencies and reducing red tape. Most general government agencies are dependent on the Budget for funding. Infrastructure Investment to Chart 1. As shown in Table 1. Table 1. Agencies must ensure that their infrastructure continues to support the planned delivery of services and that it is adequately maintained. Related closely to this project is the further development of the single Government procurement website for agencies and industry to provide easier access to information regarding procurement policy and guidance.{/INSERTKEYS}{/PARAGRAPH} The maintenance expenditure estimates for the general government and PTE sectors under the new reporting regime are set out in Table 1. The allocation of infrastructure investment across agencies in is shown in Chart 1. Infrastructure Australia. Total b. They provide a clear indication of where future growth is expected to occur and where supporting infrastructure is needed. The Government is committed to improving public sector procurement processes for infrastructure investment. The record infrastructure investment program is expected to support an average of up to , jobs each year over the Budget and Forward Estimates period. Agency planning and the SIS process ensure that infrastructure delivery aligns with these plans. TAM submissions provide the strategic context for individual project proposals, which must also be supported by business cases and, for major and high risk projects, independent Gateway Review reports. Sound asset management requires an appropriate balance between the acquisition of new assets and the efficient utilisation of existing assets, including disposal of those assets that are surplus and no longer required. The capital funding will provide for the delivery of up to 6, new homes and the provision of new infrastructure in primary and secondary schools. The Government has responsibilities to ensure that its existing state infrastructure and assets continue to meet its long-term service delivery priorities. The infrastructure program represents planned investment at a point in time. Major infrastructure investment over the four years includes:. The Government is committed to meeting the growing needs of the community through a wide range of measures including provision of essential new infrastructure, using existing assets more productively and developing regulatory settings to encourage private investment in infrastructure. These assets include public schools, TAFE facilities, hospitals, police and court facilities, transport networks, public housing and recreation facilities, as well as infrastructure such as roads, electricity generation, transmission and distribution networks, water storage and supply networks, and ports facilities. Public Trading Enterprise Sector. In collaboration with the States and Territories, Infrastructure Australia is playing a key role in ensuring that Australian Governments identify and invest in the infrastructure needed to meet the significant challenges ahead. Budget Paper No. The key elements of infrastructure procurement reform are:. Infrastructure Australia is a national body established in by the Australian Government to provide advice to governments, investors and owners of infrastructure. This is primarily due to:. Simplification of the Procurement Policy Framework. The table does not include the public financial enterprise sector which has very little infrastructure. Infrastructure investment decisions are driven by commercial considerations and are financed from revenue and borrowings. It is an overarching framework for all government procurement and applies to all government departments, statutory authorities, trusts and other government entities. {PARAGRAPH}{INSERTKEYS}Exhibit C iii E. The largest increases in the PTE sector in the Budget are for infrastructure investment in social housing and transport. A number of other Government priorities influence infrastructure planning and decision making. This record level of investment will provide new and improved essential public services, mainly in the areas of education, health, housing, transport, water, roads, public order and safety, accommodation for the aged and electricity. The sectors used are based on grouping similar agencies together. The reforms do not fundamentally amend the current policies underpinning government procurement. Metropolitan and Regional Strategies. The land component value of infrastructure has been separated from buildings, providing a clear delineation between built and non-built infrastructure. A number of factors intrinsic to infrastructure delivery, such as variances in the timing and scope of projects, changes to the cost of materials and labour and changes in weather conditions can affect the infrastructure investment outcome against what was budgeted. Source: Agency Annual Reports. Previously, interest costs on large projects such as Sydney Desalination Plant and Port Botany Expansion were capitalised and. Processes are in place to ensure that the infrastructure programs for agencies in this sector reflect Government priorities and resource capabilities. Public Trading Enterprise Sector a. After peaking in , the size of the capital program begins to adjust to a more long-term sustainable level. Agency TAM plans are in turn founded on a wholistic approach to service planning and asset procurement, in which a range of strategies other than infrastructure spending are considered. The goal of the simplification project is to ensure that procurement policy is more accessible by government agencies. Treasury is currently streamlining the Government Procurement Policy Framework. The reason for this is to ensure that reporting of maintenance expenditure is not understated and any shortfalls in maintenance spending are quickly identified. Historical data and forecasts in this Budget Paper are presented on an accrual basis and in nominal dollars. The Mini-Budget reprioritised the infrastructure investment program over the next four years, focusing on key Government priorities and program flexibility, thus reducing the potential for future cost pressures. Also included are details of major projects being undertaken in the Budget and projects completed or due for completion in Details of the service delivery benefits of individual projects are also provided. As shown in Chart 1. The main reasons for this are:. The general government estimates in all years in this Budget Paper exclude the value of land under State roads due to uncertainties associated with valuing these assets. Infrastructure Statement This investment will be supported by funding from the Australian Government under both its economic stimulus and nation building packages. The extensive guidance on procurement to industry and government agencies is being rationalised and structured in a more coherent and accessible form. The Strategy assists Treasury, service delivery agencies and the Government through a clearer understanding of infrastructure needs and funding constraints over the medium-term. General government sector agencies provide essential public services in areas such as health, education, roads and police. It emphasises agency accountability for outcomes, greater upfront planning and stronger linkage with the Budget process, prior to allocation of capital funding. Final approval of individual projects is subject to completion of detailed project planning and normal budget processes. This requirement has resulted in a more comprehensive and consistent reporting of infrastructure maintenance costs. The Government is committed to optimising the provision of infrastructure assets to the people of New South Wales to ensure service delivery needs are met now and into the future. Procurement Policy. Larger agencies are required to submit an Asset Strategy that explains the interrelationship, alignment and prioritisation of assets to support delivery of agency services as identified in their Results and Services Plan or Statement of Business Intent and detailed in their Corporate Plan. The revised energy strategy will implement measures including withdrawing from electricity retailing and transferring to the private sector the right to trade the output from existing power stations to create the environment for private sector investment in generation. The Government is implementing a range of reforms to improve procurement outcomes and to simplify existing infrastructure procurement policies and procedures. General Government Sector. As illustrated in Chart 1. The revised infrastructure investment program presented in this Budget Paper maintains these financial disciplines.