You are a member of the Infrastructure NSW Gateway Review Team assessing procurement options for delivering Parramatta Light Rail Stage Two. It has been suggested that this project could be delivered as either a Public Private Partnership or a Design Build Operate Maintain (excluding private finance). Can you compare the two options and suggest which might be preferred with justification. (Hint: Refer to the reasons why the public sector opt to use PPPs as demonstrated in why several governments have used the PPP model to deliver light rail. Consider why a different model was used for Parramatta Light Rail Stage One.) Question 2 It has also been suggested that one of the problems impacting the delivery of Sydney CBD and South East Light Rail was the use of nonrecourse project finance to finance ALTRAC, the SPV, which was delivered as a PPP. Can you explain what the use of project finance implies for TfNSW and what risks this implies, and what steps TfNSW can take to protect itself?You are a member of the steering committee considering options for delivering Parramatta Light Rail Stage Two. One of the delivery team has asked you to provide some guidance as to what you are looking for in the business case. Can you identify three elements, which you consider to be pivotal to the business case, and why you consider them to be particularly important for the project? (Hint: Refer to the notes on what should be provided in a business case. Consider the type of project proposed and explain what you consider to be particularly sensitive either from the perspective of government or the community with justification.) Question 4 You are a member of the Sydney Metro team that has been called to a meeting with the NSW Transport Minister to discuss how to respond to the release of the Infrastructure Australia evaluation of Sydney Metro Western Sydney Airport. The Minister has heard that the Sydney Morning Herald is about to publish a negative article describing the IA evaluation as highly critical and mentioning flaws in the business case. You have been asked to provide a briefing on how the Minister should respond. (Hint: Refer to the conflicting project evaluations published by INSW and IA and identify the reasons why each agency formed its view. Then try and reconcile the conflicting arguments and provide an overall recommendation.) Question 5 You are a member of the Sydney Metro Board. You understand that Infrastructure NSW has favourably assessed the business case and concluded that Sydney Metro West is economically viable. Does this mean that the project can now function without government subsidy and that there is the potential to lower fares in the future? (Hint: Refer to the notes on the distinction between economic and financial viability. Consider the level of fares and the ability torecover operating costs. Explain the financial implications to government of lowering fares and running public transport.).

1. You are a member of the Infrastructure NSW Gateway Review Team assessing procurement
options for delivering Parramatta Light Rail Stage Two. It has been suggested that this project
could be delivered as either a Public Private Partnership or a Design Build Operate Maintain
(excluding private finance). Can you compare the two options and suggest which might be
preferred with justification. (Hint: Refer to the reasons why the public sector opt to use PPPs as
demonstrated in why several governments have used the PPP model to deliver light rail. Consider
why a different model was used for Parramatta Light Rail Stage One.) Question 2 It has also been
suggested that one of the problems impacting the delivery of Sydney CBD and South East Light
Rail was the use of nonrecourse project finance to finance ALTRAC, the SPV, which was
delivered as a PPP. Can you explain what the use of project finance implies for TfNSW and what
risks this implies, and what steps TfNSW can take to protect itself?You are a member of the
steering committee considering options for delivering Parramatta Light Rail Stage Two. One of the
delivery team has asked you to provide some guidance as to what you are looking for in the
business case. Can you identify three elements, which you consider to be pivotal to the business
case, and why you consider them to be particularly important for the project? (Hint: Refer to the
notes on what should be provided in a business case. Consider the type of project proposed and
explain what you consider to be particularly sensitive either from the perspective of government or
the community with justification.) Question 4 You are a member of the Sydney Metro team that
has been called to a meeting with the NSW Transport Minister to discuss how to respond to the
release of the Infrastructure Australia evaluation of Sydney Metro Western Sydney Airport. The
Minister has heard that the Sydney Morning Herald is about to publish a negative article describing
the IA evaluation as highly critical and mentioning flaws in the business case. You have been
asked to provide a briefing on how the Minister should respond. (Hint: Refer to the conflicting
project evaluations published by INSW and IA and identify the reasons why each agency formed
its view. Then try and reconcile the conflicting arguments and provide an overall recommendation.)
Question 5 You are a member of the Sydney Metro Board. You understand that Infrastructure
NSW has favourably assessed the business case and concluded that Sydney Metro West is
economically viable. Does this mean that the project can now function without government subsidy
and that there is the potential to lower fares in the future? (Hint: Refer to the notes on the
distinction between economic and financial viability. Consider the level of fares and the ability
torecover operating costs. Explain the financial implications to government of lowering fares and
running public transport.)