By their very nature, PPP projects involve a vast array of interconnecting relationships. This is not just between the Procuring Authority and the Project Company, but with and between other stakeholders including end-users, the public, equity investors, lenders, contractors, insurers, advisors, other government departments, and PPP units. Figure 3 illustrates the potential relationship complexities involved in a PPP transaction.

PPPs have the potential to create an environment of collaboration and mutual benefit, where improvements and efficiencies can lead to increased value for the government, high quality services for end-users, and commercial benefits for the private parties. The achievement of these goals depends, to a large extent, on how well the relationships between the parties are managed, as poor relationship management can have significant knock-on effects.

Section structure

This section provides guidance on managing relationships with three key stakeholder groups: the Project Company and its associated private partners (equity investors, lenders, contractors); end-users and the community; and other government agencies. The key elements of successfully managing stakeholders are summarised below and detailed in Subsection 3.3.1 (Guidance), Subsection 3.3.2 (Guidance: Project Company), Subsection 3.3.3 (Guidance: private partner stakeholders other than the Project Company), Subsection 3.3.4 (Guidance: end-users, businesses and the community) and Subsection Subsection 3.3.5 (Guidance: other government agencies).

A.   Define all stakeholders that are relevant to the project

B.   Ensure good communications strategies and practices are developed

C.   Keep good records of communications, including informal communications

Project Company

D.   Consider the interests of the Project Company, including any changes in its circumstances

E.   Ensure appropriately frequent meetings are held, including at the relevant strategic levels

F.    Follow formal communication requirements where required

G.   Be aware of the positive and negative aspects of appointing Project Company board members

H.   Consider co-location of office space with the Project Company, which can benefit the relationship

I.    Use contractual provisions to protect the rights of the Procuring Authority rather than as punitive measures

J.    Focus on a positive relationship, even in the presence of ongoing disputes

Private partner stakeholders other than the Project Company

K.   Consider associated private partners (including the construction contractor) in communications and relevant meetings

End-users, businesses and the community

L.   Ensure end-users, businesses and community stakeholders are engaged at all stages of infrastructure delivery to ensure viability and enhance the services

M.   Ensure ongoing transparent engagement with ends-users, businesses and community stakeholders on all relevant issues

N.   Define the role of the Project Company in the management of ends user, business and community stakeholders

O.   Consider each relevant community group, as they may have different interests and desired outcomes

Other government agencies

P.    Consider the level of involvement required from other government agencies

Q.   Set up effective governance structures to manage the relationships with other relevant government agencies

R.   Collaborate with the Project Company to work with other government agencies, where appropriate

S.   Plan early for managing other government or quasi-government agencies that the Procuring Authority does not have influence over