Greetings!
Welcome to the first edition of Investment Matters. Investment Matters offers insight into the development of infrastructure investment practices within the Department of Treasury and Finance's Commercial Division. It will provide periodic updates on policy, guidance, learnings and tools in areas such as:
- Infrastructure planning and investment
- Scoping infrastructure projects
- Implementing infrastructure projects
- Project assurance
- Investment evaluation
- Upcoming events
If you have any news relevant to whole-of-government infrastructure investment that you'd like to include in future issues, please contact investment.matters@dtf.vic.gov.au |
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Things are changing... the investment policy review
Some of our investment policies, processes and guidelines are being reviewed in 2012. The aim is to provide clear, integrated guidance and useful tools that promote better practice and help you shape, plan and deliver well considered infrastructure investments. An important aspect of the update is the increased support for High Value High Risk projects (HVHR), including complex ICT-enabled projects.
The review includes:
As the review progresses, DTF will seek to electronically circulate draft material for comment as appropriate and hold information sessions for open discussion and feedback.
If you would like to be involved in the consultation for this review and haven't already done so please register your interest by using this subscribe link to update your profile.
For more information, please contact Alanna Weekley | |
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HVHR asset investment process
The State Government's 'High Value High Risk' (HVHR) process is well underway. The Government implemented HVHR in December 2010 to enhance investment development and oversight rigour to help ensure major infrastructure and ICT projects are delivered on time and budget.
The HVHR process applies to all investments with a Total Estimated Investment of more than $100 million; 'High Risk' investments are identified by the Gateway Project Profile risk assessment or by Government.
The Treasurer is fully committed to the process and the need for robust business cases for proposed projects. The Treasurer expects business cases to be rigorous and complete. Therefore, all relevant documentation to substantiate the project and the project's deliverability needs to be provided.
All HVHR investments warrant the extra scrutiny and ongoing involvement by the Treasurer in development, approval, tendering and delivery to increase confidence in project investment and benefit delivery for Victorians.
A growing collection of HVHR resources is available from the DTF website for departments and others involved in project development and delivery.
For more information contact Neil Morgan
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| PAEC Inquiry into Successful Delivery of Infrastructure Projects | |
In 2011 the Public Accounts and Estimate Committee (PAEC) commenced an inquiry into Effective Decision Making for the Successful Delivery of Significant Infrastructure Projects. The Terms of Reference of the inquiry can be found at the Parliament of Victoria website.
DTF prepared a Whole-of-Government response to the PAEC inquiry. This submission and other submissions received by PAEC can be found at the Parliament of Victoria website.
Initial Public Hearings were scheduled from 20 to 22 March 2012. At these hearings, the Committee heard from a range of stakeholders who had made submissions to the inquiry, including Secretaries of Victorian Government Departments, professional bodies and other infrastructure experts.
Key areas of focus include skills and capabilities, use of private sector advice and personnel and the merits of centralisation versus decentralisation. DTF will use the results from the inquiry to inform the periodic development of related guidance material and associated training and development when it is released later in the year.
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Gateway review - Don't run a red light!
Gateway reviews are a project assurance tool involving periodic reviews that result in a helpful peer prepared report for the senior responsible owner (SRO). The project status is assessed using a traffic light rating (red, amber or green) relating to the progress of your project. As part of the Government's HVHR policy, Red Flag Reporting has been introduced.
Now, the SRO is required to formally respond if their project receives a red (i.e. critical) individual recommendation in a Gateway report. Before Treasurer approval of relevant project stages departments will need to demonstrate that red flag recommendations have been appropriately addressed.
Responses to Red Flags should be submitted to DTF utilising a Recommendation Action Plan (RAP). RAPs that result from Gates 1, 2, 3 and 4 will inform DTF's assessment and recommendations in relation to the Treasurer's approvals required at relevant project stages (for example business case, market documentation or procurement decisions).
The procedure for awarding a red, amber or green status within a Gateway report has also been recently updated.
For more information contact Marc Bradley.
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ICT guidance under development
We are currently developing supporting guidance to assist departments and DTF analysts developing and assessing ICT project proposals. The guidance will cover key areas such as:
- project scoping
- understanding ICT solutions (i.e. customised versus off the shelf options)
- DTF's expectations of an ICT project business case; and
- how to provide better cost estimates of an ICT project
New guidance will be finalised in the first half of 2012.
For more information, please contact Jane Chapman or Lynda Rogers
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We want your feedback!
If you have any questions or comments about infrastructure investment policy, or content ideas for future issues, please contact us at investment.matters@dtf.vic.gov.au
Sincerely, Joe Monforte
Director
DTF - Commercial Division
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