Infrastructure and Project Financing Agency

Section 2: Outcomes and planned performance

Australian Government outcomes are the intended results, impacts or consequences of actions by the Australian Government on the Australian community. Commonwealth programs are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs. The following provides detailed information on expenses for each outcome and program, further broken down by funding source.

Note:

Performance reporting requirements in the PB Statements are part of the enhanced Commonwealth performance framework established by the PGPA Act. It is anticipated that the performance criteria described in PB Statements will be read with broader information provided in an entity's corporate plans and annual performance statements—included in Annual Reports—to provide an entity's complete performance story.

The corporate plan for IPFA can be found at:
www.ipfa.gov.au/news-media/news/infrastructure-and-project-financing-agency-releases-corporate-plan-2017–18

2.1 Budgeted expenses and performance for Outcome 1

Outcome 1: To leverage additional private sector investment in infrastructure and secure better returns from the Commonwealth's investment by assisting the Government to identify, assess, and broker financing opportunities for infrastructure and projects, including through engagement with Commonwealth entities, State and Territory governments, and the private sector.

Budgeted expenses for Outcome 1

This table below shows how much IPFA intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by departmental funding sources.

Table 2.1: Budgeted expenses for Outcome 1

Table 2.2: Performance criteria for Outcome 1

Table 2.2.1 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 2018–19 Budget measures have created new programs or materially changed existing programs.

Outcome 1—To leverage additional private sector investment in infrastructure and secure better returns from the Commonwealth's investment by assisting the Government to identify, assess, and broker financing opportunities for infrastructure and projects, including through engagement with Commonwealth entities, State and Territory governments, and the private sector.
Program 1.1—To leverage additional private sector investment in infrastructure and secure better returns from the Commonwealth's investment by assisting the Government to identify, assess, and broker financing opportunities for infrastructure and projects, including through engagement with Commonwealth entities, State and Territory governments, and the private sector.
Purposes (a)
  • Provide independent commercial and financial advice to support the delivery of Australian Government infrastructure projects.
  • Build the Australian Government's capability to deliver infrastructure priorities.
  • Strengthen confidence in the Australian Government's investment through better-informed decisions and investment management.
Delivery During 2018–19 and the forward years IPFA's work program will be delivered consistent with IPFA success measures and targets as described in IPFA's 2017–18 to 2020–21 Corporate Plan, which are discussed below.
Current performance information
YearPerformance criteriaTargetsEstimated achievement
2017–18 Development of capability and procedures to perform the key functions of IPFA, particularly the provision of quality advice to the Government on the assessment and brokering of private financing opportunities for significant infrastructure projects Recruitment of suitably skilled staff and contractors, including a Chief Executive Officer Completed. The permanent Chief Executive Officer commenced on 11 December 2017. Staff have been engaged and recruitment strategy in place
Development of capabilities and frameworks with which to perform the assessment, advice and brokering of private financing opportunities for significant infrastructure projects Completed. The IPFA corporate plan, which was released on 23 February, contains information on IPFA's performance measurements
Establishment of required governance and organisational arrangements, including relevant policies and procedures Completed. Governance frameworks and policies and procedures in place
Commencement of engagement with key stakeholders, including Commonwealth agencies, states and territories and the private sector Completed. The CEO undertook a comprehensive program of high level consultation between December 2017 and February 2018
Provision of high quality and timely advice to Government agencies, the Prime Minister and the Cabinet on preferred financing approaches and priority projects for engagement Completed. IPFA has become an active adviser to a number of high-priority projects across Government
Analysis, development and/or review of tailored financing (and alternative funding) options for specific infrastructure projects Completed. IPFA has provided commercial and financial advice to government on a number of matters
Provision of first stand-alone report on innovative financing opportunities for transformative economic infrastructure to the Cabinet Completed. Report delivered in October 2017 with further updates to be provided via quarterly Cabinet memoranda
Forward looking performance information
Year Performance criteria Targets
2018–19 and beyond Our partners seek our commercial and financial advice:

The value of IPFA and our advice will be evident when we are viewed as the trusted adviser and first point of call, rather than a mandated partner, and we are approached to be involved in the decision-making processes for nationally significant infrastructure projects from day one
Our advice is proactively sought by government and agencies:
  • For 2017–18 25% of our work is sought proactively through unsolicited approaches from agencies and/or Government
  • For 2018–19 and later years an increase from the 2017–18 achievement
Our involvement improves outcomes for and our advice is valued by all stakeholders:

A successful engagement on a project will be evident if it can be seen that our advice was adopted and/or it is acknowledged that we played a significant role in supporting decision-making on delivery of the project
Stakeholders are satisfied with our advice and involvement:
  • For 2017–18 75% of stakeholders are satisfied
  • For 2018–19 and later years an increase from the 2017–18 achievement

Our contribution increases confidence in the Australian Government's infrastructure investment decisions and processes:

A key area of success will be where external stakeholders acknowledge the value of having a more sophisticated Australian Government investor in infrastructure and how we have contributed to a greater level of confidence of stakeholders in the government's decisions and process

Delivery of agreed activities and positive stakeholder/market regard for our contribution:
  • For 2017–18 100% of committed activities being completed within timeframes, and 75% of feedback from external stakeholders regarding our contribution is positive
  • For 2018–19 and later years will be an increase from the 2017–18 achievement
Our work strengthens the commercial and financial capability of the Australian Government

We are partnering with agencies across government to raise the level of in-house commercial and financial expertise and capability of infrastructure investments arrangements

A more commercially expert public service can better support the Australian Government in its infrastructure investment decisions, reduce dependency on external advisors and improve the retention of critical commercial knowledge
Facilitation of quality knowledge sharing and development programs, events and forums:
  • For 2017–18 10 knowledge sharing activities, with 75% satisfaction with the quality of the activity
  • For 2018–19 and later years will be an increase from the 2017–18 achievement
Material changes to Program 1.1 resulting from the following measures:
  • There are no new measures with a material impact on the performance information for Program 1.1.

Note:

  1. Refers to purposes that are reflected in IPFA's 2017–18 to 2020–21 Corporate Plan

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Budget 2018-19