A SSET A SSESSMENT AND P RIORITISATION Sarsha Pyzik Director, Infrastructure Planning April 2014 Department of State Development, Infrastructure and Planning

Outline 2 Infrastructure Assessment and Prioritisation Recognising the catalysts Evaluating the priorities Encouraging private sector participation

Recognising the catalysts 3 Recognising the catalysts through strategic and economic prioritisation tools: 1. Economic focusing on the expected economic value added by the infrastructure project - its expected contribution to GSP, in dollars terms 2.Strategic the extent to which it is consistent with the Government’s broader agenda High priority investments stimulate growth and productivity, and align to Queensland Government’s strategies

Economic prioritisation 4 So what is important in economic terms? – Demand – Capacity – Productivity – Contribution to GSP This information is used to see if investment in different types of infrastructure has the potential to increase productivity. Impacts of productivity change impact on GSP and employment – both are important measures Infrastructure investment has two distinct effects on GSP: – spending money to build the infrastructure will create economic activity as a result of construction expenditure – the long term value of the services delivered by the infrastructure

5 Strategic assessment - The Queensland Plan Governing for Growth 4 Pillar Economy – resources, tourism, construction, agriculture Infrastructure Plan Supply Chain - streamline the supply chain? Does it solve a known network constraint? Strategic prioritisation

Structured approach to prioritisation Department of State Development and Infrastructure Planning February 2014 NOT GOVERNMENT POLICY 6

Economic outlook and Queensland’s economic growth Achievements and current priorities Queensland’s competitiveness DSDIP’s role in delivering economic prosperity

Evaluating the priorities 8 State Infrastructure Plan – a plan that prioritises state infrastructure – provides clear direction regarding Government’s objectives and policy – facilitates private sector involvement – supports the delivery of value for money and economic growth The SIP will outline Queensland’s infrastructure priorities for the next 15 years Top-down approach for infrastructure prioritisation, and delivery: – Queensland Plan (priorities and policy agenda) – Infrastructure for Economic Development (blueprint for infrastructure reform) – Other strategies and submissions (e.g. IA, Port Strategy, Freight Strategy)

Key strategies & initiatives 9 Strengthening Queensland’s Regions Governing for Growth (economic framework) Royalties for Regions Regional and Resource Towns Action Plan Galilee Basin Development Strategy Infrastructure for Economic Development Economic Directions Statement Queensland Airports Queensland Ports Strategy

Encouraging private sector participation 10 Creating an environment conducive to investment – All levels of government have a role to play – Infrastructure is essential but not the only factor Driving Competitiveness – Reducing the COST of doing business in Queensland – Providing CERTAINTY of policy, processes and decision making – Sorting out relations with the COMMONWEALTH – Better engaging the COMMUNITY on the benefits of economic development

Actions and reforms

Encouraging participation

13 TMR: strategies, and plans (QTRIP, TIPPS, Freight Strategy, HV Strategy, Rail Strategy) DEWS: strategies, and plans (Water Strategy, Energy Strategy) Queensland Treasury and Trade, including Projects Queensland (PAF, Affordability, Funding and financing) Other strategies, and plans (Sun Water, Powerlink, Queensland Rail, Bulk Ports, Aurizon, Pacific National)

Funding and Financing 14 Budget impact What is the short term and long term fiscal impact of the project? How is the project likely to be funded? What proportion of funding comes from local, state or federal government? Is the initiative commercial or does it require an on-going government commitment? Private Sector Does the project maximise private sector potential? Does the project attract private sources of financing?