This audit assessed whether the WA Schools Public Private Partnership (PPP) Project is on track to deliver its intended benefits. We focused on the following questions:

• Is the project being delivered efficiently and are facilities and services meeting contract standards and school needs?
• Is there effective project management and monitoring of contractor performance and risks?

Background

In 2015 the WA Government signed a $631 million[1] contract with EduWest[2] to design, build, finance and maintain 8 schools until 2047, under the WA Schools Public Private Partnership (PPP) Project (Table 1[3]). PPP schools extend around the Perth metropolitan area from Alkimos in the North, to Byford in the south east and south to Lakelands in Mandurah (Appendix 1). Primary schools are built in a single stage to accommodate enrolment of students in all year groups at opening. Secondary schools are built in 2 stages, with year groups added over time.

[1] In 2015 dollars.

[2] A consortium of Macquarie Corporate Holdings Ltd, Badge Constructions Pty Ltd, Perkins (WA) Pty Ltd and Spotless Facilities Services Pty Ltd.

[3] The contract does not include a breakdown of the $313 million for finance costs or facilities management costs for individual schools.

[4] Built outside the PPP but has facilities management services. Furniture, fittings and equipment are included in Stage 2 costs.

The stated key objectives for the project are to:

• achieve functional educational designs that provide quality teaching and learning environments
• achieve value for money over the life of school assets
• improve efficiencies in service delivery for the Department of Education (DoE)
• achieve time and cost efficiencies in the delivery of a program of works through economies of scale.

The Strategic Projects business unit in the Department of Finance leads project planning and delivery. The DoE is responsible for defining the service scope and functional requirements for school facilities and managing the contract when schools become operational. EduWest is responsible for organising project finance, designing schools in accordance with State requirements, building school facilities and facility management services including maintenance, gardening, cleaning, supplying caretakers, helpdesk and systems support.

Student education at PPP schools remains the responsibility of the State Government through the DoE. Principals, teachers and support staff are employed by the DoE as they are in all public schools. In essence, the private sector delivers and maintains the school facilities while the school staff is able to concentrate on providing educational services.

The PPP project is unlike other school procurement and maintenance arrangements. It sets minimum standards and costs for whole of life asset maintenance, and facilities management services over 32 years. Maintenance costs for the other 800 public schools are not set years in advance, but are part of DoE’s annual budget submission.