Victorian Auditor General: The Royal Womens' Hospital PPP

Publication Date
25 June 2008

This report by the Victorian Auditor General presents results of the 2008 audit of the operations of the Royal Women's Hospital in Parkville, Victoria.

The hospital was procured by contracting the private sector, under the Partnerships Victoria framework, to design, build, finance and maintain the facility for 25 years from mid–June 2008 onwards.

The objective of the audit was to assess the adequacy of the state's planning, procurement and management of the redevelopment. Agencies involved in the audit were the Victorian Department of Human Services, the Victorian Department of Treasury and Finance and the Royal Women's Hospital.

The report examines the adequacy of investment planning, the value offered by private sector bids and effectiveness of supervision of delivery of infrastructure and services. It finds that the planning and business case for the new facility was sound and the procurement exercise was conducted in compliance with the rules, policy and guidance set by the Government of Victoria.

The report makes four recommendations concerning the performance monitoring programme and abatement process; the contract systems and processes for the operational phase of the new hospital; the Contract Administration Manual; and Partnerships Victoria contract management guidance on Contract Management Plans and Contract Administration Manuals.