Infrastructure WA

31. Facilitate and coordinate investment in industrial and technological precincts by:

1. prioritising the finalisation of land assembly, approvals, development contribution arrangements in precincts with fragmented land ownership and other preparatory works, as recommended in the Industrial Lands Strategy
2. applying existing state land-use planning system tools, such as improvement schemes and redevelopment schemes, in a more consistent and proactive manner to industrial and technological precincts of highest priority to the state
3. consistent with Recommendation 40 in the Infrastructure delivery chapter, establishing an assessment process for the funding of strategic enabling infrastructure that facilitates private investment
4. planning for the long-term land needs throughout the state, with a priority focus on additional heavy industrial land in the Perth metropolitan area, and completing investigations into the South West Advanced Manufacturing and Technology Hub.

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 31 is fully supported. For further information please refer to the response document.

Improve cross-sector outcomes and alignment and provide certainty for private sector investment by developing and implementing a shared-use policy framework and practical guidelines for multi-user infrastructure corridors and facilities. The framework and guidelines should encompass:

• planning
• land assembly
• access arrangements
• safety and operational requirements
• governance
• conflict resolution
• staging and funding alignment
• risk and liability management.

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 32 is partially supported. For further information please refer to the response document.

33. Provide for future infrastructure needs by identifying and securing strategic sites, including:

1. establishing a centrally coordinated, dedicated and recurrent fund for regional land acquisition
2. centrally coordinating strategic infrastructure site identification, matching state agency and government trading enterprise needs with government landholdings and enabling better use of the existing land asset base.

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 33 (a) is partially supported; (b) is fully supported. For further information please refer to the response document.

34. Improve infrastructure planning by establishing a single, agreed set of common planning assumptions for state agencies and government trading enterprises, including:

1. providing, at a minimum, assumptions on population, demographics, housing, economy, employment, human services use, utilities use, transport, land use and climate
2. setting out agreed data sets and guidance material for their application
3. embedding them in the Strategic Asset Management Framework’s Strategic Asset Plan and Business Case guidelines as required for use, or provide a clear rationale or an exemption where they have not been applied
4. updating them regularly and making them publicly available.

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 34 is partially supported. For further information please refer to the response document.

35. Improve 2-way public and private sector information sharing about infrastructure capacity by:

1. developing statements of opportunity to identify surplus capacity or constraints in public infrastructure networks, in collaboration with industry, to harness opportunities or address barriers
2. undertaking place-based assessments of future public and private sector infrastructure intentions, including public and private utility providers, to identify the cumulative impacts of large-scale investments on demand for services and infrastructure, as well as opportunities for greater coordination. An initial pilot should be conducted on the Pilbara region.

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 35 is fully supported. For further information please refer to the response document.

36. Support improved infrastructure planning and decision-making by:

1. establishing an appropriate mechanism to embed and communicate the required use of the Strategic Asset Management Framework, including the requirement for all state agencies and government trading enterprises to comply
2. ensuring that all business case decision-making is considered by the Expenditure Review Committee of State Cabinet, and that all business cases contain the full range of content, relevant to their project value, as required by the Strategic Asset Management Framework
3. providing a centralised fund to support development of prioritised business cases, with an increased emphasis on building public sector capacity in state agencies and centralised expert units
4. updating the Strategic Asset Management Framework’s Business Case Guidelines to require consideration of interrelated infrastructure needs beyond the primary investment with other state agencies and government trading enterprises, along with the full costs and benefits, through early engagement and integrated business cases
5. requiring a benefits management plan to be completed and ensuring Infrastructure WA undertakes a post-completion review for all projects and programs that are required to undergo Major Infrastructure Proposal Assessment
6. updating the Strategic Asset Management Framework’s Strategic Asset Plan and Business Case guidelines to strengthen requirements for state agencies and government trading enterprises to demonstrate consideration of this Strategy and other relevant strategic planning documents and how they have informed the development of all related strategic asset plan and business case content
7. ensuring strategic asset plans are at the centre of a robust and transparent annual process, involving:
   1. systematic analysis of all strategic asset plans on an individual and amalgamated basis by Department of Treasury and IWA
   2. undertaking analysis and preparing content to inform the annual 10-year state infrastructure program
   3. engagement by the Department of Treasury with all strategic asset plan–producing state agencies and government trading enterprises to provide feedback to assist in ongoing improvement.

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 36 (a,b,d,f,g) is fully supported; (e) is partially supported; (c) is not supported. For further information please refer to the response document.

37. Strengthen infrastructure project assurance processes, governance and public sector skills for the delivery of major projects by:

1. developing an enhanced and rigorous risk-based project assurance process to provide independent verification and review at key stages of project planning, delivery and operation, reporting to Cabinet and the respective project teams with clear action plans
2. ensuring that the appointed chairs of major project steering committees have sufficient time to devote to preparing for, attending and leading steering committee meetings and deliberations
3. further enhancing the capacity of the Department of Finance to provide expert teams within less-experienced state agencies to advise and upskill staff and build capacity
4. developing and rolling out project management standards for adoption by state agencies and government trading enterprises.

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 37 (a-b) is fully supported; (c-d) is partially supported. For further information please refer to the response document.

38. Achieve greater value for money from infrastructure investment by making incremental improvements to procurement policies and practices, including:

1. further developing and implementing procurement models for major projects to encourage a culture of collaboration, achieve better risk allocation and address industry sustainability 
2. implementing contract packaging strategies that support market participation, including smaller packages, where appropriate, to provide opportunities for mid-tier and lower-tier contractors 
3. encouraging greater market response for major projects by developing a policy under which the WA Government would contribute to all or part of the bid costs of unsuccessful tenderers, under specific conditions including the transfer of intellectual property from bidder to government   
4. further reviewing and refining the Market-led Proposals Policy to ensure it is meeting its intended purpose and that proposals are considered promptly while balancing risk
5. considering and implementing program procurement approaches, including panels of contractors, where appropriate, such as for the delivery of similar small-to-medium projects across one or more state agencies or government trading enterprises 
6. considering the use of offsite and modular construction techniques where benefits can be achieved
7. establishing a cross-agency infrastructure procurement coordination mechanism for projects in the planning phase, or during business case development, to identify staging opportunities.

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 38 (a,b,d,e,f,g) is fully supported; (c) is not supported. For further information please refer to the response document.

39. Ensure more efficient use of infrastructure funds by improving project cost management, including:

1. establishing clear standards for setting project delivery time frames and cashflows at a program level that account for public and private sector capability and capacity
2. replacing the current, individual project-based contingency management with a whole of government (or whole of state agency or government trading enterprise) based contingency management approach.

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 39 is partially supported. For further information please refer to the response document.

40. Increase the total available pool of public infrastructure finance and funding by reviewing the potential to use private sector finance and funding sources, including:

1. investigating asset recycling through divesting suitable assets, such as underused buildings and land, with proceeds used to fund new infrastructure
2. developing whole of government principles to inform the prioritisation of state funding contributions where these facilitate strategic private sector investment.

WA Government response

The WA Government responded to Foundation for a stronger tomorrow in February 2023. Recommendation 40 (a) is not supported; (b) is fully supported. For further information please refer to the response document.