Clearer MLP guidelines open the door for proposal success

The Palaszczuk Government’s Market-Led Proposal (MLP) guidelines have been revised and updated, further streamlining processes and making the requirements clearer.

Treasurer Curtis Pitt announced the improvements in today’s Budget Estimates hearings and said the changes had been developed by Queensland Treasury after consulting with stakeholders, including industry, and reviewing the experiences in other Australian jurisdictions.

“The changes reinforce MLPs as a key channel for government to work with the private sector and to increase the amount of quality proposals that are submitted for consideration,” he said.

“Importantly the number of assessment criteria is reduced from nine to six, which will streamline the process for applicants and assessors.

“The guidelines have been updated to more clearly explain the criteria required for a successful MLP proposal and new supplementary guidance with practical examples has been developed.

“The Market-Led Proposal Panel will be involved much earlier in the consideration of proposals.

“This consideration by senior government executives will ensure that no good proposal is missed or gets left behind.”

Since introduction of the MLP framework in July 2015, the MLP Team in Queensland Treasury has had discussions with proponents across every industry resulting in, 44 ideas submitted for Stage 1 formal assessment  

“Six of these proposals have now progressed to Stage 2: Detailed Proposal or beyond, and there are more in the pipeline,” Treasurer Pitt said.

“The $512 million Logan Motorway Enhancement Project, put forward by Transurban Queensland, was the first MLP project to proceed to final binding contract and is now in project delivery and set for completion in mid-2019.

“Another five proposals are in detailed negotiations. They comprise almost $260 million in potential capital investment, and would potentially support an average of 400 jobs each year during construction.

“These projects, which are creating jobs for Queensland, are additional to this government's $40 billion publicly funded infrastructure program.

“They have been brought to the attention of government via enterprising businesses who have new or innovative services or ideas about better ways to use public assets.”

Mr Pitt said the government’s focus would continue to be on working with business, industry and local communities to attract investment, invest in infrastructure and create jobs. 

“MLPs still need to demonstrate that they meet a government priority and community need, are value for money and that there is sufficient justification to work exclusively with the proponent,” Mr Pitt said.

“Where this is the case, I encourage private sector companies – both large and small – to bring us ideas and opportunities that will generate benefits for Queenslanders and our economy.”

More information regarding Market-Led Proposals can be found at: www.treasury.qld.gov.au/mlp

Background

MLPs provide a framework for the private sector to seek government facilitation for services or infrastructure that meet the community’s needs.

A successful MLP will deliver a government priority in a way that provides value for money and where an exclusive arrangement can be justified. MLPs are well suited to projects which are low cost and low risk to the state and can be funded by the private sector – such as on a user pays basis.

Where a good idea isn’t successful as an MLP, it is progressed in another way. Of the 23 formal proposals closed to date, six are being considered for, or are progressing through, a competitive process and four have been referred to existing government funding programs or other government support.

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