New Footscray Hospital - Project Summary

New Footscray
Hospital Project
Project Summary
May 2021
2—3
Introduction
On 10 March 2021 the State Government of Victoria entered into a Public Private
Partnership (PPP) contract with Plenary Health (Project Co) to deliver the new
Footscray Hospital (the Project).
The Project was procured and will be delivered as a PPP under the Partnerships
Victoria Framework. Under this model Project Co is responsible for the design,
construction, financing and provision of facilities management services to the new
hospital and the delivery of commercial development complementary to the hospital
functions. The State, via Western Health, will operate and deliver clinical services to the
new hospital.
This Project Summary provides information about the contractual and commercial
aspects of the Project. The document is divided into three parts.
The first part is an overview of the Project, including the rationale for PPP delivery,
and summarises:
• the Project Objectives and scope
• the tender process
• the public interest considerations for the Project, and
• the tender process timetable.
The second part details the financial outcome of the Project, including the value for
money assessment.
The third part sets out the key commercial features of the Project, including the main
parties and their general obligations, the broad allocation of risk between the public
and private sectors and the treatment of various key project issues.
Partnerships Victoria forms part of the Victorian Government’s strategy for providing
better services to all Victorians by expanding and improving Victoria’s public
infrastructure and service delivery. The Partnerships Victoria Framework uses private
sector expertise to design, finance, build, operate and maintain infrastructure projects.
The framework consists of the National PPP Policy and Guidelines and supplementary
Partnerships Victoria Requirements. Further information on the Partnerships Victoria
Framework is available at https://www.dtf.vic.gov.au/infrastructure-investment/
public-private-partnerships.
This summary should not be relied upon to completely describe the rights and
obligations of the parties in respect of the Project, which are governed by the Project
Deed and associated documents. The Project Deed and associated documents are
available online at the Buying for Victoria website www.tenders.vic.gov.au.
This document may be updated from time to time. Please check the Partnerships
Victoria website https://www.dtf.vic.gov.au/public-private-partnerships/partnerships-
victoria-ppp-projects for the current edition.
4—5
Contents
Introduction 3
Part One – Project Overview 6
Part Two – Financial outcome 26
Part Three – Key Commercial features 39
Appendix A Glossary 61
Appendix B RFP Evaluation Criteria 65
Appendix C Public Interest Test 67

Part One – Project Overview
6—7
1. The Project
The new Footscray Hospital will be an exemplary and enduring tertiary hospital that
enables delivery of world-class health care to the community of Melbourne’s west. While
a hospital first and foremost, it will also be a catalyst for change, supporting the
development of a broader health, education, research and community precinct.
The Victorian Government is making the largest health capital investment in the State’s
history to deliver the new hospital and ensure that demand for health services in the
inner west is met when the new hospital opens in 2025 and into the future.
This modern facility will ensure the people of Melbourne’s west have greater access to
quality care closer to home, and will deliver a critical uplift in the long term capacity of
public health services in Melbourne’s western corridor, where demand for services is
expected to more than double over the next 20 years. It will also ease demand pressures
on inner Melbourne hospitals, as many patients currently bypass the existing Footscray
Hospital and seek treatment in inner Melbourne.
1.1 Project background and context
The new Footscray Hospital will replace the existing Footscray Hospital located at 160
Gordon Street in Footscray. Built in the 1950s, the ability of the existing Footscray
Hospital to meet demand for health services in the inner west and service the broader
western Melbourne area is being challenged, given the sustained growth in demand for
health services in Melbourne’s west and the ageing condition of the existing facilities.
Originally built through the support of and contributions from the local community, the
existing Footscray Hospital has a proud history and is affectionately known as the
‘people’s hospital’. The new Footscray Hospital will continue this legacy and reflect the
community it serves.
1.2 The New Footscray Hospital
The new Footscray Hospital will be an elective and emergency hospital that will become
increasingly expert in the provision of treatment for chronic disease, as well as
enhancing its teaching and research capacity. Operated by Western Health, the new
hospital will form part of an integrated network of hospitals that delivers a
comprehensive range of services to the people of Melbourne’s west, from tertiary
services in areas of emergency medicine, intensive care, medical and surgical services,
through to subacute care and specialist ambulatory clinics.
This integrated network of hospitals operated by Western Health includes:
• Footscray Hospital
• Sunshine Hospital (including Joan Kirner Women’s and Children’s)
• Williamstown Hospital
• Sunbury Day Hospital.
The new Footscray Hospital will provide a full range of medical and surgical specialties
for adult patients, with a focus on new models of care for patients with chronic and
complex medical conditions.
With an increase in surgical capacity and modernisation of operating room facilities,
the new Footscray Hospital will be Western Health’s main surgical site, providing a home
for Western Health’s most complicated surgical services and a range of surgical sub-
specialties. Mental health and drug and alcohol services will continue to be delivered at
the new facility.
1.3 Project Objectives
The State’s objectives in delivering the Project are shown in Figure 1.
Figure 1: Project Objectives
Improve access to quality care Support operational efficiency

close to home for the people of and provide flexibility to respond
western Melbourne. to changing clinical practice,
technology and service demand.
Use evidence-based design to Create an ecologically

promote the physical and sustainable precinct that
mental wellbeing of its diverse optimises value for money on
users, including patients, a whole-of-life basis.
families, staff and the broader
community.
Enable the delivery of integrated Deliver a vibrant community

care, both within and beyond the asset that enhances liveability
hospital. and fosters collaboration in
education, training and research.
1.4 Project Site and planning

The new Footscray Hospital will be located on the approximately four hectare,
triangular site (Project Site) on the western corner of the intersection of Geelong and
Ballarat Roads in Footscray and is bordered by Geelong Road in the southeast, Ballarat
Road in the north, Federal Street in the southwest and Tiernan Street in the northwest.
Approximately nine kilometres from Melbourne’s CBD and located within the Footscray
Metropolitan Activity Centre, this landmark site will act as a gateway to the City of
Footscray.
The Project Site is accessible to transport infrastructure (roads and public transport),
having the following attributes:
• good road access and prominent street frontages on both Geelong and
Ballarat Roads
• approximately one kilometre from Footscray Railway Station
• close to a number of tram stops including the Droop Street tram stop (Route 82,
Stop 60)
• well serviced by bus routes (including along Ballarat Road) and bike paths.
The Project is being facilitated by a Planning Scheme Amendment by way of an
Incorporated Document in the Maribyrnong Planning Scheme pursuant to section 6(2)
(j) of the Planning and Environment Act 1987, authorising the use and development of
the land for the new Footscray Hospital.
8—9
Figure 2: Precinct and local context
1.5 A public private partnership

The Project is an ‘availability based’ PPP being procured under the Partnerships Victoria
Framework. This is a long-term service contract between the public and private sectors
where, once the design, construction and commissioning of the facility has been
completed, the State pays the private sector a service fee to maintain the infrastructure
and perform the related facilities management services over the 25 year term. The
Partnerships Victoria model seeks to achieve better value for money by capturing the
expertise and efficiencies of the private sector in designing, financing, building and
maintaining infrastructure projects and providing services on a whole-of-life basis.
The decision to procure the Project as a PPP focuses on achieving value for money
outcomes by:
• allocating risks to the party, or parties, best placed to manage them, with the majority
of design, construction, maintenance and facility management services risks being
transferred to the private sector thereby incentivising innovative and efficient whole
of life solutions
• increasing opportunity for the State to harness private sector innovation in
complementary site activation to enhance the experience for hospital users and the
broader community, and
• incentivising delivery of the Project on time and within budget. Timely delivery and
budget certainty were important factors given the complexity of the works and the
value of the Project.
Prior to the release of the Invitation for Expressions of Interest (EOI), an extensive market
sounding was undertaken of the relevant industry participants, including
sponsors and third party equity investors, debt financiers, design and
construction contractors and facilities management contractors. The feedback
from this process supported the State’s selection of a PPP model to deliver the
Project and achieve the State’s objectives.
1.6 Procuring agency and governance structure
The Minister for Health is the lead Minister for the Project. As such, primary
accountability for ensuring the State’s Project Objectives are met rests with the
Department of Health (the Department).
The Victorian Health Building Authority (VHBA), on behalf of the Department, is
the body responsible for delivering the Project. VHBA is responsible for
overseeing all aspects of the Project including stakeholder engagement, the
conduct of the tender process, securing relevant planning approvals, oversight
of construction delivery and ongoing contract management during the
Operational Phase.
Western Health will operate and provide all clinical services at the hospital.
A steering committee comprising representatives from the Department,
Department of Treasury and Finance, Department of Premier and Cabinet and
Western Health has been established to oversee the Project and make
recommendations to the Secretary and the Minister for Health.
A Project Planning Team has also been established and reports directly to the
Steering Committee via the new Footscray Hospital Project Director. The Project
Planning Team comprises representatives from VHBA, Western Health and the
Department of Treasury and Finance.
1.7 Stakeholder engagement
VHBA has conducted extensive stakeholder and community engagement
activity during the Project’s development, as outlined in the table below.
Table 1: Stakeholder consultation
Project Stakeholder Description
Western Health The VHBA has collaborated with Western Health

since the commencement of the planning phase and
throughout the procurement phase. As operator of
the hospital, Western Health has been and will
continue to be a key stakeholder in the Project’s
governance structure for the term of the Project.
Maribyrnong City Council As a key stakeholder, Council is represented on the

(Council) Project’s Community Consultative Committee (CCC)
and has been engaged from the commencement of
the planning phase including in relation to the site
selection, development of the Project’s Value
Creation and Capture Plan, community engagement
and other relevant local issues such as carparking
and impacts on local roads.
10—11
Project Stakeholder Description
Victoria University Victoria University has been actively involved in the

Project’s development as the former owner of the
majority of the Project Site, and in the development
of additional research and education space for its
exclusive use as well as a pedestrian footbridge over
Ballarat Road connecting the hospital to its
Footscray Park campus (VU Project Components).
Victoria University will continue to participate in the
Project as a lessee and user of these components.
Other Government The VHBA has engaged with Government

Departments (including departments throughout the planning and
Department of Jobs Precincts procurement phases of the Project as relevant,
and Regions, Department of including in relation to matters such as site selection,
Planning and Department the Footscray Business Precinct (formerly Priority
of Transport) Precinct), the Project’s Value Creation and Capture
Plan, planning approvals and proposed
traffic solutions.
Community of A CCC has been established for the Project. Chaired

Melbourne’s West by Katie Hall MP, Member for Footscray, the CCC
provides a forum for members of the local community
to participate in the Project’s development through
open dialogue and consultation. VHBA and Western
Health have also undertaken extensive community
engagement in relation to the Project since 2018.
There is strong support for the Project in
the community.
12—13
2. Tender process
The State conducted a competitive tender process to select a private sector party
to deliver the new Footscray Hospital. The tender process was implemented in
accordance with the Partnerships Victoria Framework to ensure the State received
the best value for money outcome. The tender process involved three phases as
described below:
• EOI phase – involving releasing the Invitation for EOI and then selecting
shortlisted Respondents.
• Request for Proposal (RFP) phase – involving issuing an RFP to shortlisted
Respondents, an intensive interactive tender process, shortlisted Respondents
submitting Proposals, and clarifying and evaluating the Proposals.
During this phase, the State temporarily suspended the tender process to allow for
the redeployment of the Project’s public and private resources to the State’s
response to the COVID-19 pandemic. This resulted in a suspension of the tender
process of approximately two months.
• Negotiation and completion phase – involving the appointment of a Preferred
Respondent and the conduct of an exclusive negotiation phase to resolve all issues
to the satisfaction of the State, leading to execution of the Project Deed and
associated documents and the achievement of Contract Close and Financial Close.
2.1 Tender process governance
The State established a formal evaluation and governance structure to oversee the EOI
and RFP evaluation processes. Separate evaluation panels supported by specialist
evaluation Sub-Panels and/or advisory groups, whose members were specifically
selected for their skills in a particular area, conducted the EOI and RFP evaluations.
The specialist evaluation Sub-Panels that undertook the RFP evaluation comprised:
• a Commercial and Legal Sub-Panel that evaluated the commercial, financial,
contractual, value creation opportunities and insurance aspects of the Proposals
• a Design and Technical Sub-Panel that evaluated the master plan, design,
architectural, engineering, Ecologically Sustainable Development (ESD), project
management, equipment and related aspects of the Proposals
• a Services Sub-Panel that evaluated the facilities management related aspects of
the Proposals, and
• a Government Policy Requirements Sub-Panel that evaluated the government
policy, communications, industry development and jobs outcomes aspects of
the Proposals.
Specialist working and user groups, project advisers and other Government agencies
supported the evaluation panel and sub-panels as relevant, including a dedicated
Victoria University advisory group that assessed the proposals as they related to the
VU Project Components during the RFP evaluation phase.
The respective evaluation panels were responsible for making recommendations
concerning the EOI and RFP evaluation processes to the Project steering committee.
14—15
2.2 Probity
The tender process was undertaken within a robust probity framework, endorsed by
the Project’s probity adviser, which focused on:
• accountability of the participants and transparency of the process
• fairness and impartiality in carrying out the process
• identification and management of actual, potential and perceived conflicts
of interest
• maintenance of confidentiality and security of documentation and information.
In addition, the Project had regard to and abided by the Public Administration Act 2004
(Vic) and all other relevant government tendering policies with public officials required
to comply with the Code of Conduct for the Victorian Public Sector.
At the completion of the tender process, the probity adviser confirmed they were not
aware of any material probity risks that had not been appropriately managed in
accordance with applicable requirements.
2.3 Tender process timetable
The tender process milestone dates, including the temporary suspension of the
process during the RFP Phase due to the impacts of the COVID-19 pandemic as
described above, are as follows.
Table 2: Tender process – Key dates
Phase Date
Expression of interest phase
Invitation for EOI issued 20 June 2019
EOIs submitted 24 July 2019
Shortlist of Respondents announced 16 October 2019
RFP Phase
RFP issued 9 November 2019
RFP Phase suspended 3 April 2020
RFP Phase recommenced 1 June 2020
Proposals submitted 9 July 2020
Negotiation and Completion Phase
Preferred Respondent announced 6 October 2020
Contract Close 10 March 2021
Financial Close 11 March 2021

2.4 Evaluation process
The Evaluation Criteria applied in assessing Proposals are presented in Appendix B. To
assist Respondents in preparing their Proposals, the State provided guidance in the
RFP as to the relative weightings of each Evaluation Criterion and sub-criterion.
2.5 Project Advisers
VHBA appointed the following advisers to assist in delivering the Project.
Table 3: Project Advisers
Role Adviser
Commercial and Financial Adviser PricewaterhouseCoopers
Legal Adviser Minter Ellison
Probity Adviser O’Connor Marsden & Associates
Architect and Health Planner Adviser Jacobs Group and Destravis Group
Technical Adviser Waterman AHW
Cost Consultant Donald Cant Watts Corke
Facilities Management Adviser RixStewart
Technology Adviser UT Consulting
FF&E Adviser Hospitech Facilities and Asset Management
16—17
18—19
3. Tender process outcomes
3.1 Shortlisted Respondents
Three conforming EOIs were received and three Respondents were selected to proceed
to the RFP Phase, being:
• Advance West – comprising John Holland, ISS Health Services, Tetris Capital and
John Laing Investments
• Exemplar Health - comprising Lendlease, Spotless Facility Services, Capella Capital
and Siemens Project Ventures, and
• Plenary Health - comprising Multiplex, Honeywell, Compass, Plenary Group and Sojitz
Corporation.
3.2 Successful Respondent
On 6 October 2020 and following an extensive evaluation process, Plenary Health was
announced as the Preferred Respondent to enter into exclusive negotiations with the
State to deliver the Project. Plenary Health’s offer was not only assessed as providing
value and being affordable relative to the Public Sector Comparator, it was also
assessed as delivering the best overall value for money relative to the other two
Respondents.
The State subsequently negotiated with Plenary Health to resolve all identified issues to
the satisfaction of the State, and the Project Deed and associated documents were
executed on 10 March 2021.
3.3 Key Components of the Project
The Project comprises the design and construction of the new hospital, together with
carparks, grounds, gardens and associated site and external infrastructure (utilities
and roadworks infrastructure external to the Project Site).
The Project also includes:
• infrastructure for the benefit of Victoria University
• the provision of facilities management services for the 25 year Operational Phase,
including carparking management services for Sunshine Hospital Carpark, and
• the provision of commercial and other value creation opportunities which are
complementary to the hospital and support the State’s Value Creation and
Capture Framework.
3.3.1 Hospital
The new Footscray Hospital will comprise:
• 608 Points of Care (508 beds) fitted-out on commencement of operations
• 86 Points of Care in shell space for future expansion
• at least 1,224 carparks.
Table 4: New Footscray Hospital Points of Care
Fitted-out on
Department commencement Shell space
Multi Day Med/Surg IPU beds 224 28
Critical Care beds 54
Emergency 50
Multi Day ED Short Stay beds 24
Mental Health and Alcohol and other 8

Drugs hub
Acute Dialysis beds 8
Perioperative Operational Rooms 8 2
Perioperative Recovery 18 9
Perioperative Procedure 4 4
Interventional Labs 4
Interventional Recovery 8
Same Day Med/Surg beds 36 14
Rehab/GEM/Palliative Care IPU beds 96 4
Mental Health IPU beds 50 25
Drug and Alcohol beds 16
Total 608 86
3.3.2 Victoria University

In support of the Project Objective to create a vibrant community asset that fosters
collaboration in education, training and research, the Project includes the following
components which are funded by Victoria University (VU Project Components):
• approximately 5,000 square metres of dedicated Victoria University research and
education space on the Project Site (VU Space), and
• a public-use pedestrian footbridge spanning Ballarat Road connecting the VU Space
and Project Site to Victoria University’s Footscray Park Campus (Pedestrian
Footbridge).
20—21
3.3.3 Services
In accordance with the PPP contracting model, Project Co will be responsible for delivery
of facilities management services (including asset lifecycle replacement) to the new
hospital as set out in further detail in Section 11.3.9.
The new Footscray Hospital forms part of an integrated network of hospitals operated
by Western Health and clinical staff regularly move between hospital sites. To support
common staff access systems, the delivery of carpark management services for the
Sunshine Hospital Carpark are also included within the PPP scope.
3.4 Value Creation and Capture Framework
The State is committed to the Value Creation and Capture Framework to maximise the
value created from its investment in the Project. This policy provides a framework to
identify economic, social and environmental benefits above and beyond what would
otherwise be achieved as a direct consequence of the Project.
As a result of the application of this framework, an extensive range of value creation
and capture initiatives will be delivered, including commercial opportunities and
other benefits.
3.4.1 Commercial opportunities
The Project includes commercial opportunities which deliver value and provide
services for the benefit of the community. These opportunities are located both within
the main hospital buildings and the VU Space (In Hospital Opportunities), and also in a
stand‑alone facility to be located along the Tiernan Street boundary of the Project Site
(Tiernan Street Building).
The commercial opportunities comprise the following:
• childcare
• gymnasium
• retail pharmacy
• medical clinic
• food and beverage outlets
• convenience retail
• office space and consulting suites.
Carparking revenues do not form part of the PPP project scope and accrue to
Western Health.
3.4.2 Other Value Creation and Capture benefits
The following value creation and capture initiatives are included in the Project as a
result of the application of the Value Creation and Capture Framework.
Table 5: Achievement of Value Creation Objectives
Value Creation Objective Description of value creation initiatives in the

Proposal
Expand the breadth and The new Footscray Hospital precinct will provide a
volume of services to enhance range of community and health services that
health outcomes complement the clinical services provided by Western
Health, such as childcare, a medical clinic and
consulting suites.
A retail pharmacy, gymnasium, food and beverage
outlets, small retail and ‘Village Green’ (central open
space) are also embedded in the hospital precinct,
offering convenience and improving the wellness of
patients, staff, visitors and the broader community.
A community hub allowing for patient support and
outreach services and use by local community groups
will be provided, together with an Aboriginal
gathering place.
Technology and digital connection enabled through the
new hospital will also support increased at-home
hospital services, such as through Western Health’s
‘Hospital in the Home’ program.
Improve economic growth of The Project will employ more than 2,000 people at peak
the inner west, including construction, creating an estimated 177 new jobs,
through increased including 70 apprenticeships, traineeships and
productivity and employment cadetships.
The new hospital is also expected to create over 250
new jobs once in operation and attract new investment
through ancillary and specialist health services
relocating to the area.
Additional employment opportunities are also expected
to be created with the significant expansion of clinical
services at the new hospital.
Plenary Health’s proposal exceeds the State’s minimum
Local Jobs First Policy and Social Procurement
requirements as noted in Section 3.5.
Activate the surrounding The new Footscray Hospital will be a vibrant community
Precinct asset that is not only a catalyst for urban regeneration
of the inner west but which will also help improve social
and civic amenity and fosters collaboration in
education, training and research.
The hospital has been masterplanned to connect into
the Precinct with high-quality pedestrian links into and
around the Project Site, as well as to provide good
access to public transport, including the Droop Street
tram stop (Route 82, Stop 60) and bus routes along
Ballarat Road. Commercial opportunities (including
retail offerings) will also activate the Tiernan Street
frontage.
22—23
Value Creation Objective Description of value creation initiatives in the
Proposal
Improve ecological outcomes The hospital has been designed to enable future
for the Precinct electrification to support Victoria’s transition to a net
zero carbon economy and incorporates measures to
achieve long term sustainability and improved patient
outcomes, including but not limited to:
• a 5 Star Green Star hospital including capacity to
collect and reuse 90 per cent of roof rainwater
• quality indoor environment with a high proportion of
spaces with excellent daylight factor, achieving a
WELL Gold rating
• a high proportion of inpatient rooms with views of the
exterior and landscaped environments
• active travel strategy (including accessibility to
public transport, and 500+ bicycle spaces with end of
trip facilities)
• sustainability requirements for architectural
materials selection.
Improve the social capital of In accordance with Government’s Social Procurement

the community Framework, the new Footscray Hospital will deliver
additional social value above and beyond the value of
the Project as detailed in Section 3.5.
Foster research, education, Research and education will play a key role in the new
training opportunities and Footscray Hospital. The hospital includes dedicated
collaboration Victoria University research and education space as
well as a public-use pedestrian footbridge spanning
Ballarat Road connecting VU’s Space and the Project
Site to Victoria University’s Footscray Park Campus.
Plenary Health is also establishing the Footscray
Connectivity Centre, supporting community
engagement, training, business development and
employment opportunities, through a collaboration
between government, support agencies, the local
community and Plenary Health’s contractors and
supply chain.
3.5 Other Government policy outcomes

The key project outcomes in relation to the Victorian Government’s Local Jobs First
Policy and Social Procurement Framework, and the degree to which Plenary Health’s
Proposal exceeds the State’s minimum briefed requirements, are summarised below.
Table 6: Government Policy outcomes
Government Policy Minimum requirement Contracted outcome Exceeded requirement

outcome briefed in the RFP
Local Content – 90% 90.39% 0.39%

Development Activities
Local Content – Services 80% 92.3% 12.3%
MPSG – Development 10% 10.5% 0.5%

Activities
MPSG – Services 10% 10% -
Social Procurement 1.5% of D&C Price 1.8% of D&C Price in 0.3% of D&C Price in
Target Development Phase Development Phase
1.5% of Service 1.5% of Service
Contractors’ annual Contractors’ annual
service fee in service fee in
Operational Phase Operational Phase
• Aboriginal Business 1% of D&C Price 1.45% of D&C Price 0.45% of D&C Price
procurement
• Disability - 0.15% of D&C Price 0.15% of D&C Price

procurement
• Social enterprise - 0.2% of D&C Price 0.2% of D&C Price

procurement
Victorian Aboriginal 2% of hours 2% of hours in 0.5% of hours in

Participation Development Phase Operational Phase
2.5% of hours in
Operational Phase
Victorian disability - 1.02% of hours in 1.02% of hours in

employment Development Phase Development Phase
2.0% of hours in 2.0% of hours in
Operational Phase Operational Phase
Employment and - 1.04% of hours in 1.04% of hours in

Training of Development Phase Development Phase
Disadvantaged 5% of hours in 5% of hours in
Victorians Operational Phase Operational Phase
Public Housing Tenant Minimum 6 public • At least 6 public Commitment to

Employment Program housing tenants housing tenants in maximise opportunities
Development Phase for public housing
• Commitment to tenants in Operational
maximise Phase
opportunities for
public housing
tenants in
Operational Phase
24—25
3.6 Public interest test
The State assessed the extent to which the Project was in the public interest prior to
entering into the Project Deed. The analysis was undertaken in accordance with the
Partnerships Victoria guidance on how to evaluate whether a project meets the public
interest. The assessment was made against criteria such as public access, security
and consumer rights, and concluded that, on balance, the Project was found to be in
the public interest. Appendix C contains the Public Interest Test.
3.7 Contract milestones
Key contract milestones are set out below.
Table 7: Key milestones
Milestone Date
Contract Close 10 March 2021
Financial Close 11 March 2021
Technical Acceptance On or before 11 June 2025
Commercial Acceptance On or before 9 September 2025
Service delivery/Operational Phase On or before 10 September 2025 –

9 September 2050
Contract expiry date 9 September 2050

Part Two – Financial Outcome
26—27
4. Value for money
4.1 Overview
The Partnerships Victoria Framework seeks to identify and implement the most efficient
form of infrastructure and service delivery. The concept of value for money goes beyond
selecting the cheapest solution, focusing on the value of each aspect of a Proposal. This
involves an in-depth analysis of each Proposal received from the private sector and
comparison against a State-managed delivery option. The evaluation considered
quantifiable elements (items that can be quantified in monetary terms) as well as
qualitative considerations.
4.2 Public Sector Comparator
The Public Sector Comparator (PSC) is an estimate of the hypothetical, risk-adjusted,
whole-of-life cost of the Project if delivered by the State. The PSC is developed in
accordance with the output specification and risk allocation proposed for the public
private partnership, and is based on the most likely and efficient form of conventional
(that is, non-public private partnership) delivery by the State.
The PSC is expressed in terms of the net present cost to the State, calculated using a
discounted cash flow method taking full account of the costs and risks that would arise
through State delivery1. The PSC includes amounts for the design, construction and
provision of the Services to the hospital, together with costs and revenues attributable
to mandated commercial opportunities2, as set out below.
The PSC excludes the VU Project Components which are funded separately by
Victoria University.
1
In October 2018 the Victorian Government announced a commitment of up to $1.5 billion to the
Project, representing the total estimated investment (TEI) in nominal dollars under a State
delivery model. This sum included costs outside the scope of the PPP as set out in Section 4.6.4.
By comparison, the PSC is expressed in NPC terms, includes facilities management and
whole-of-life costs and relates only to the Project scope as described in the RFP if delivered by
the State.
2
Under a State delivery model, commercial opportunities comprise staff amenities being a café,
gym and limited retail. This was the minimum (‘mandated’) offering required to be bid
by Respondents.
Table 8: Components of the PSC
Components of the PSC Net Present Cost ($ million)
Raw capital cost 1,131
Raw lifecycle and operating costs 2,389

(net of commercial revenues)
Raw PSC 3,520
Transferred risks 358
PSC (excluding retained risk) 3,878

1. All numbers are expressed in net present values as at 1 July 2020.
2. In accordance with the National PPP Policy and Guidelines, a risk free rate of 1.69% was used in
calculating the net present value of the PSC and its components.
3. The Raw PSC represents the base raw costs to the State to deliver the Project. The term ‘raw’
refers to the estimate of costs to the State of delivering the Project before taking into account
adjustments for competitive neutrality and risk.
4. The PSC includes adjustments for ‘competitive neutrality’ where necessary, to remove the net
competitive advantages or disadvantages that accrue to Government by virtue of its public
ownership. A competitive neutrality adjustment is not applicable for this Project.
5. The PSC includes transferred risk estimates but excludes State retained risk estimates.
4.3 Net Present Cost of Project Co Proposal (Hospital)

The quantitative value for money assessment for provision of the hospital, together with
the Project Co commercial opportunities offer, is demonstrated by the estimated
savings between the PSC and the private sector contract cost. As shown below, a saving
of $582 million in NPC terms has been achieved as a product of private sector delivery.
Table 9: Value-for-money comparison – PSC versus private sector delivery
Private sector
Public sector contract cost
comparator (Hospital) Estimated savings Estimated savings
(NPC, $m) (NPC, $m) (NPC, $m) (%)
3,878 3,296 582 15

1. All non-percentile numbers are expressed in net present values as at 1 July 2020.
2. In accordance with the National PPP Policy and Guidelines , a Proposal evaluation discount
rate of:
• 3.69% was used in calculating the net present cost of the Monthly Service Payments, and
• 3.49% was used in calculating the net present cost of the State Contribution
under the private sector contract.
4.4 Net Present Cost of Project Co Proposal (Project)
The private sector contract value for the Project inclusive of the VU Project Components
(which are to be funded by Victoria University) is $3,368 million (NPC).
28—29
Table 10: Net Present Cost of Project Co Proposal (Project)
Private Sector cost NPC, $m
Hospital 3,296
VU Project Components 72
Private sector contract cost NPC (Project) 3,368
4.5 Additional value for money benefits

In addition to meeting all of the State’s requirements for the Project at a price that is
$582 million less than the State’s PSC, Project Co’s Proposal includes a number of
additional benefits for the State, hospital users and the broader community.
These include:
• Capacity beyond RFP briefed requirements: Plenary Health’s final Proposal provides
additional hospital capacity beyond the minimum scope requirements specified in
the RFP, comprising:
– Day 1 capacity: 608 POC (508 beds) on operational commencement (being 9
additional POC compared to the briefed RFP requirements) and including:
o 6,226 sqm in additional departmental area
o 24 additional carparks.
– Capacity for future expansion: shell space for future expansion of 86 POC (being 57
additional POC compared to the briefed RFP requirements) and including:
o the provision of reticulated engineering services to facilitate future conversion to
clinical operations
o site masterplanning to allow for further expansion in the longer term if required.
• Designing for pandemic response: As a result of lessons learned during the COVID-19
pandemic, the hospital design incorporates the following pandemic measures:
– Designating expansion areas for the intensive care unit.
– Designing some inpatient unit wards to operate in pandemic mode and allowing for
increased capacity to treat critically ill or infectious patients.
– Designing the emergency department to ensure it can continue to operate safely
and efficiently during a pandemic by including a clear expansion zone and a pre-
triage streaming area.
– Provision of an ambulatory clinic area that can operate as a pandemic clinic.
• ESD: the hospital incorporates the following measures to achieve long term
sustainability and improved patient outcomes:
– Designed to enable the future electrification of the hospital to support Victoria’s
transition to a carbon neutral economy.
– Compliance with 5 Star NABERS water and energy targets and 5 Star Green Star
including capacity to collect and reuse 90 per cent of roof rainwater.
– A quality indoor environment with a high proportion of spaces with excellent
daylight factor.
– Provision of a high proportion of in patient rooms with views of the exterior and
landscaped environments.
• Value creation and capture: the new Footscray Hospital will be a state-of-the-art
healthcare precinct delivering a highly integrated and valuable community asset
acting as a gateway to Footscray and the wider western region. A range of
commercial and other initiatives will activate the site and provide amenity for hospital
users and the broader community, as set out in Section 3.4 Value Creation and
Capture Framework.
• Employment and economic growth: the Project will employ more than 2,000 people
at peak construction, creating an estimated 177 new jobs, including 70
apprenticeships, traineeships and cadetships. The new hospital is also expected to
create over 250 new jobs once in operation and attract new investment through
ancillary and specialist health services relocating to the area.
• Other government policy outcomes: a range of further social and economic benefits
expected to be generated by the Project are set out in Section 3.5 Other Government
Policy outcomes.
4.6 Other revenues and costs
The Project involves revenues and costs not included in the NPC of Project Co’s Proposal
as below.
4.6.1 Additional revenues
• Western Health will derive carparking revenue from the hospital carparks.
• Under specified circumstances the State may share in additional revenues
attributable to the Tiernan Street Building.
4.6.2 Additional costs
The State has or will meet a range of costs including:
• Cost of land acquisition of the Project Site from Victoria University and other parties
• Site demolition costs
• Tender process transaction costs including the project team and project advisers
• Contract management costs of administering the Project Deed and associated
documents
• Costs pertaining to State retained risks.
30—31
32—33
5. Monthly Service Payments
and revenues
The payment mechanism for the Project is generally consistent with the mechanisms
developed in precedent ‘availability based’ hospital PPP projects and is structured to
deliver performance, innovation and value for money. The cash flows between the State
and Project Co are made during the Operational Phase and comprise:
• payments by the State to Project Co (Monthly Service Payments or MSP), and
• a separate revenue stream attributable to the Tiernan Street Building payable by
Project Co to the State.
5.1 Monthly Service Payments
The MSP is determined in accordance with a defined formula that reflects a traditional
PPP payment mechanism, alongside a performance regime calibrated for project
specific costs and activities. The MSP encompasses both the capital and operating
elements of the Project, and is net of the underwritten revenues attributable to the In
Hospital Opportunities.
The key components of the MSP are outlined below.
Table 11: Components of the MSP
Monthly Service
Payment component Description
Non-reviewable Services In respect of Project Co’s cost of developing the

(Unindexed) hospital (including the cost of construction) and related
finance costs (debt and equity). This is the capital
component of the MSP.
The value of this payment does not escalate over the
Operational Phase.
Lifecycle In respect of Project Co’s asset refurbishment and

(indexed) replacement costs.
The real value of this component indexes at a
combination of CPI and WPI over the Operational
Phase.
Reviewable Services In respect of costs for the Reviewable Services.

(indexed) The real value of this component indexes at a
Phase.
Non-reviewable Services In respect of Project Co’s other Operational Phase

(indexed) costs, including building management services.
The real value of this component indexes at a
Phase.
Insurance In respect of Project Co’s forecast industrial special

risks and public liability insurance costs (periodically
adjusted as a result of benchmarking the costs of these
insurances during the Operational Phase in
accordance with the Project Deed)
Monthly Service
Payment component Description
Minor Works In respect of Project Co’s minor works costs during the
(indexed) Operational Phase.
The real value of this component indexes at CPI over
the Operational Phase.
Food Volume Adjustment Addition/reduction to the MSP for food procured and
supplied to patients by Project Co calculated on a
volume basis.
Closed Area Rebate The provision of the Services has been priced assuming
full utilisation of the facility. Should there be a reduction
in the utilisation of the facility due to areas being
designated by the State as ‘closed’, the MSP will be
reduced accordingly.
5.2 Performance regime

Abatements to the MSP may be made each month during the Operational Phase based
on Project Co’s performance. In addition, various one-off abatements may be levied
upon commencement of operations where certain Development Phase requirements
have not been met.
The performance regime is structured to incentivise Project Co to design, construct and
maintain assets that comply with the State’s requirements, stated in terms of quality,
availability and functionality. The regime has been broadly structured in line with the
performance regimes adopted for previous Partnerships Victoria infrastructure
projects.
The components of the Project’s performance regime are summarised below.
Table 12: Components of the performance regime
Service Payment
component Description
Performance Abatements Reduction to the MSP for the following failures:

• Availability failures – Where functional areas are not
available for use and unavailability is not rectified
within the required periods.
• Incident failures – Where functional areas do not
meet specified requirements (not resulting in
unavailability) and this is not rectified within the
required periods.
• Quality failures – Where minimum service
requirements are not achieved, resulting in a quality
failure.
Mobilisation Abatement Reduction to the MSP where Services mobilisation

activities are not delivered in compliance with the
Services mobilisation plan.
Local Content One-off adjustment where the contractually agreed

Requirements Adjustment targets for Local Content Requirements for
Development Activities is not achieved.
Major Projects Skills One-off adjustment where the contractually agreed

Guarantee (MPSG) target for the MPSG Requirement (Development
Adjustment Activities) is not achieved.
34—35
Full details of the performance regime are contained in the Project Deed, including the
Services Specification.
5.3 Tiernan Street Building revenues
In accordance with the licence arrangements for the Tiernan Street Building, a fixed
monthly rental is payable to the State throughout the project term. In addition to this
fixed rental, the State may also share in future revenues under specified circumstances.
5.4 Quantum of net payments
The following table provides further details on the quantum of the MSPs (net
of revenues).
Table 13: Disclosure of nominal cash flows
Cost of contracted Discount rates Total cost of Payment over first

proposal as at 1 used to arrive at contracted financial year
July 2020 (NPC, $ net present cost proposal (nominal, (nominal, $ million)2
million) $ million)1
3,368 MSP - 3.69% 6,096 132

State Contribution
- 3.49%
Note:
1. Represents the sum of Monthly Service Payments over the life of the contract.
2. This figure reflects payments from 9 September 2025 (expected date of Commercial
Acceptance) to 30 June 2026.
6. Financial liability treatment
The State will accrue a financial liability in its balance sheet in relation to the Project.
The financial liability arises due to the costs incurred by Project Co during construction,
resulting in a progressive build-up of an asset recognised in the State’s balance sheet as
work in progress. A financial liability will be progressively recognised in line with these
costs, representing the State’s obligation to make future payments to Project Co for the
financing, design and construction of the Project.
The financial liability for the Project is outlined below. The reported figure represents the
peak financial liability the State will incur based on the Financial Close Financial Model.
This peak occurs following the end of the Development Phase (at Commercial
Acceptance).
The financial liability has been calculated under current accounting practice in
accordance with AASB 9 Financial Instruments.
Table 14: Disclosure of financial liability
Peak Financial Peak Financial Expected year of Implied interest

liability (nominal) liability (NPC) peak financial rate in financial
($ million) ($ million) liability liability
3,090 2,051 2025 4.68%
7. State financial contributions

To reduce the overall financing cost of the Project and enhance value for money, the
State will make a one-off capital contribution of $573 million (nominal) to Project Co
upon achievement of Commercial Acceptance, comprising both the hospital and VU
Project Components.
The State Contribution must be used by Project Co to reduce project debt. The payment
has no material impact on the risk allocation for the Project, as Project Co may still incur
significant abatements to the MSP if the Services are not delivered to the
required standard.
8. Partial bid cost reimbursement

The State will make a contribution to the unsuccessful Respondents for the verifiable
and reasonable external costs incurred in preparing their Proposals (capped to a
maximum payment to each unsuccessful Respondent of $5 million).
Payment of the contribution to Proposal costs is subject to the unsuccessful
Respondents satisfying certain terms and conditions.
Reimbursement of a proportion of the unsuccessful Respondents’ bid costs is
consistent with the Partnerships Victoria Requirements where it will maximise
competition by incentivising stronger market responses and attracting better quality
Proposals. The State retains the intellectual property contained in each unsuccessful
Respondent’s Proposal.
36—37
Part Three –
Key Commercial
Features
9. Parties to the contracts
The State has contracted with Project Co to deliver the Project.
The State has separately contracted with Victoria University in relation to its
involvement in the Project, including its funding contribution. Whilst the VU Project
Components are included in the Project scope, there is no direct contractual
relationship between Project Co and Victoria University. Further detail concerning the
Victoria University arrangements is set out in Section 12.
The relevant parties under the contractual arrangements are set out below.
Table 15: Relevant parties
Entity
State Parties
The State The State is a signatory to the Project Deed and ancillary
Project documents. The Minister for Health is the person
empowered to execute these contracts on behalf of
the State.
Secretary The Secretary is a signatory to certain ancillary Project

documents in its capacity as owner of the Project Site.
Western Health Western Health will be a signatory to the Operational Phase

licence when it is entered into in its capacity as lessee of the
hospital upon completion of construction. It will also deliver
the clinical services at the new hospital.
Key Private Sector Parties
Project Co Project Co is Plenary Health (NFH) Pty Ltd in its capacity as

trustee of the Plenary Health (NFH) Unit Trust.
Project Co is the counterparty to the Project Deed, and is
the primary contracting entity with the State.
Project Co, in turn, has entered into a range of contracts
with other parties to facilitate the delivery of the Project.
Finance Co Finance Co is Plenary Health (NFH) Finance Pty Ltd. Finance

Co will on-loan funds borrowed from the Financiers to
Project Co.
D&C Contractor The D&C Contractor is Multiplex Constructions Pty Ltd.

Project Co has appointed the D&C Contractor to design and
construct the facility.
Services Contractors The Services Contractors are Compass Group Healthcare

Hospitality Services Pty Ltd and Honeywell Ltd. Project Co
has appointed these entities to provide a range of facilities
management services to the facility.
Car Park Contractor The Car Park Contractor is Wilson Parking Australia 1992
Pty Ltd. Project Co has appointed this entity to provide
services to the new Footscray Hospital and Sunshine
Hospital.
Equity Investors Plenary Investments (NFH) Pty Ltd and Sojitz Healthcare
Australia Pty Ltd have provided or committed to provide the
required equity for Project Co.
38—39
Entity
Financiers The following entities have committed to provide the short

term debt required for the Project:
• Credit Industriel et Commercial
• National Australia Bank
• Nippon Life Insurance Company
• Norinchukin Australia Pty Limited
• Mizuho Bank Ltd
• Westpac Banking Corporation.
Other parties
Commercial licensees Project Co will enter into licences with future tenants of the
commercial opportunities areas within the hospital and the
Tiernan Street Building for the conduct of the approved
commercial purposes.
Independent Reviewer North Projects Pty Ltd has been jointly appointed by the
State and Project Co to oversee the design and
construction of the Project in accordance with the
Independent Reviewer Deed of Appointment.
Victoria University Victoria University has committed to fund the VU Project

Components for both construction and ongoing facilities
management services.
Detail concerning these arrangements is provided in
Section 12.
Department of The Department of Transport has granted an airspace

Transport licence to the Secretary for the construction and
maintenance of the Pedestrian Footbridge. The Secretary
has in turn granted access to Project Co for these purposes
pursuant to the terms of this licence.
L Financiers
10. Contractual Relationships

The contractual framework for the Project adopts a typical document structure used for ‘availability’
PPPs under the Partnerships Victoria Framework.
Services
D&C
Figure 3 sets out a high-level overview of the contractual framework between the State and the Contractor
Contractor
private sector. It does not include all ancillary agreements. (Soft FM)
Figure 3: Contractual structure
Secretary Legend
Ref Project Document
Project Deed
Independent State Security
M State Victoria University
Reviewer
Development Phase Licence
Agreement for Licence
(VC Licence)/VC Licence
Operational Phase Licence
Western Health IR Deed of Appointment
Tripartite Agreement
Financier Agreement
I Equity Documents
J Subcontracts
L Equity
Financiers Project Co I K VC sub-licences
Investors
L Direct deeds (the Secretary is
not a party to all direct deeds
and direct deeds are not applicable
to all commerical opportunity licensees)
J K
M Finance Direct Deed
Services Services Commercial

D&C Car Park
Contractor Contractor opoortunity
Contractor Contractor
(Soft FM) (Hard FM) licensees
Legend
Ref Project Document
Project Deed
State Security
Development Phase Licence
Agreement for Licence
(VC Licence)/VC Licence
Operational Phase Licence
IR Deed of Appointment
Tripartite Agreement
Financier Agreement
I Equity Documents
J Subcontracts
K VC sub-licences
L Direct deeds (the Secretary is
not a party to all direct deeds
and direct deeds are not applicable
to all commerical opportunity licensees)
M Finance Direct Deed
40—41
42—43
11. Contractual terms
11.1 Risk allocation
The risk allocation in the Project Deed allocates risks to the party best able to manage
them in order to achieve best value for money for the State. This results in various risks
being:
• retained by the State
• transferred to the private sector, or
• shared between the parties.
The Project Deed and associated documents establish the obligations of each party in
managing these risks.
The following table provides a high level outline of the risk allocation for the Project.
Where a risk is allocated to more than one party, those parties may not share that
allocation equally. All risks are dealt with in detail in the Project Deed and associated
documents.
Table 16: Risk allocation
No. Type of Risk Description Allocation

State Shared Project Co
Land acquisition and planning risk
1 Land availability Risk associated with

acquiring land
identified by the State 
as required for the
Project.
2 Additional land Any additional land

required by Project Co 
above the land made
available by the State.
3 Planning approvals Obtaining planning

approvals for the
Project in relation to 
land made available by
the State.
Obtaining planning
approvals for the
project in relation to 
any additional land
required by Project Co.
Changes to planning
approvals proposed by 
Project Co after
Contract Close.
4 Compliance with Obligation to comply

planning approvals with relevant planning 
approval conditions.
Site risks
5 Contamination: Cost relating to the

• on the Project management and
Site or its direct removal of such
vicinity which is contamination on the
caused or Project Site
contributed to by
Project Co or
which Project Co 
encounters,
disturbs or
interferes with
• required to be
remediated as a
consequence of
any approval
6 Contamination Cost relating to the 

which: management and (other than
• the State directs removal of such where
Project Co contamination on the Project Co is
to remediate Project Site. required to
remediate that
• is the subject of
Contamination
a contamination
as set out
notice
in item 5 or
6 above)
7 Native Title Claims Risk of cost and delay if

native title claims are
made in respect of the 
land made available by
the State.
Risk of cost and delay if

native title claims are
made in respect of any 
additional land
required by Project Co.
8 Aboriginal heritage Risk of cost and delay

and artefacts resulting from
discovery of items and 
Aboriginal heritage and
artefacts at the Project
Site.
44—45
9 Environmental risk Risk of general site and

environmental
conditions (excluding 
those specifically
identified).
Design, construction and commissioning risks
10 Force majeure Risk of delay caused by

force majeure events
which prevent 
construction
milestones being met.
11 Design risk Risk that the design

development process
cannot be completed
on time or to budget or 
that the design does
not meet the Project
Scope and Delivery
Requirements.
12 Construction risk Risk that construction 

cannot be completed (only where
on time or to budget. caused by a 
State breach
and specified
relief events)
13 Equipment Responsibility for the

selection, procurement 
and maintenance of
Group 1 Equipment.
Responsibility for the 

selection, procurement (shared
and maintenance of responsibility 
Group 2 Equipment. for selection
with Project Co)
Responsibility for the 


selection, procurement (responsible for
(responsible for
and maintenance of procurement in
selection and
Group 3 Equipment. consultation
maintenance)
with the State)
14 Defects risk Risk that defects are

identified following 
completion of
construction.
15 Fitness for purpose Risk that the Project

(commissioning) assets are not fit for
purpose or do not 
comply with
contractual obligations.
16 Commissioning Risk that the Project

assets cannot be
commissioned in 
accordance with the
agreed commissioning
criteria.
17 State-initiated If the State elects to

modifications make a significant
variation to the Project 
assets or the Services
to be provided by
Project Co.
Operating Risks
18 Force majeure Risk that force majeure

events affect the 
operation or availability
of the Project assets.
19 Asset management Meeting required

KPIs standards with respect
to asset management 
key performance
indicators.
20 Asset availability Making the Project

and maintenance asset available in
accordance with 
availability
requirements and
levels.
21 Meeting The performance of the

performance Project assets does not 
requirements meet the performance
requirements.
22 Maintenance costs Risk that maintenance

costs exceed budgeted 
costs over the
Operational Phase.
23 Operations costs Risk that operations

(non-reviewable costs exceed budgeted 
services) costs over the
Operational Phase.
24 Operations costs Risk that operations  

(reviewable costs exceed budgeted (at each (during each
services) cost over the reviewable reviewable
Operational Phase. services date) services term)
46—47
25 Lifecycle costs Risks associated with

the replacement and
refurbishment of the 
Project assets (including
plant and finishes) over
the Operational Phase.
26 Changes in Changes in service

service levels levels impacting the
(closed areas) provision of the
Services:
o within the parameters

specified in the 
Project Deed; and
o modifications to
service levels and
service plan outside 
the agreed
parameters.
27 Utility price risk Risk of change in the

price of the utility inputs 
required by the Project
assets.
28 Utility volume risk Risk of change in the

cost of utilities as a 
result of energy
demand.
29 Residual life and Satisfying the residual

end of term design life requirements
handover for the Project assets at 
the end of the
Operational Phase.
30 Carparking Risk that revenue from

revenue carparking differs from 
forecast revenue.
31 Commercial Risk that capital and

opportunities net operating costs of
revenues commercial
opportunities, and
revenue generated by 
commercial
opportunities, differs
from that projected in
the Financial Close
Financial Model.
Approvals
32 Obtaining, Obtaining, maintaining

maintaining and and complying with
complying with approvals for
approvals (other construction of the 
than planning works and maintenance
approvals) of the maintained
assets.
Obtaining, maintaining
and complying with the
approvals required for 
the value creation
opportunities.
Industrial relations
33 Industrial relations Risks of industrial action

risk in respect of the project
activities (excluding
those actions which 
directly affect Project
Co and which directly
result from an act or
omission of the State).
Change in Law or Policy risks; pandemic risks
34 General change Risk of additional cost

in law or delay resulting from a
general change in 
law during the
Development Phase.
Risk of additional cost

or delay resulting from a 
general change in
law during
35 Project-specific Risk of additional cost

change in law or delay resulting from
changes in law which 
directly affect the
Project assets.
36 Change in policy Risk of additional cost

or delay resulting from a
change in policy where
Project Co is legally 
obliged to comply or the
State directs Project Co
to comply.
48—49
37 Occurrence of Risk of additional cost

pandemic or delay resulting from a
pandemic direction in 
existence at Contract
Close during the
Development Phase.

new pandemic direction 
after Contract Close
during the Development
Phase

pandemic direction 
during the Operational
Phase.
Financing
38 Financing Obtaining and

maintaining private 
sector financing for
the Project.
39 Base interest Base interest rate risk 

rate risk prior to Financial Close.
Base interest rate risk

from Financial Close to 
first re-finance date.
Base interest rate risk

from the first re-finance 
date.
40 Refinancing Risk of refinancing 

losses.
Risk of refinancing 
gains.
41 Tax Actual tax payable by

Project Co differs from 
the base case
financial model.
42 Forex risk Risk of forex movements 

11.2 Departures from the Standard Project Deed
The Project Deed is based on the Standard Project Deed. Key agreed departures are
summarised in the following table, including project specific regimes and negotiated
outcomes.
Table 17: Summary of departures from the Standard Project Deed
Topic Summary
Project specific regimes
Car park and traffic Incorporates project-specific provisions to address

management services the provision of carpark and traffic management
services at the new Footscray Hospital and at the
Sunshine Hospital Carpark.
COVID-19 and pandemic risk Incorporates a relief regime in respect of pandemic

directions during the term, in relation to COVID-19 and
future pandemics, including additional compensable
extension events and an additional compensable
intervening event.
Employee transfer Incorporates a project-specific regime to provide for

the transition of employees who provide facilities
management services at the existing Footscray
Hospital from Western Health to the Services
Contractors.
ICT Incorporates a project-specific regime for the

selection, procurement and installation of ICT
equipment, including a regime to address the risk of
changes to Project Co's ICT network requirements
following completion of the design development
process and a requirement for Project Co to complete
specified ICT works by a specified date.
Patient Food Services Incorporates a project-specific regime to

accommodate the provision by Project Co of specified
patient food services from the State's nominated
supplier.
Pre-Agreed Modifications Incorporates project-specific pre-agreed

modifications including those outlined in Section 11.5.
Services Mobilisation Incorporates, in addition to the commissioning period,

a Services mobilisation period during which Project Co
must comply with the Services mobilisation plan.
Project Co's compliance with the Services mobilisation
plan is subject to the Independent Reviewer's review of
progress.
Commercial opportunities Incorporates a project-specific regime to provide for

the In Hospital Opportunities and the Tiernan Street
Building. This includes those opportunities identified
at Contract Close and those which may be approved
during the Term.
50—51
Topic Summary
Other departures from the Standard Project Deed
Change in Control Modified provisions relating to a change in control

which is an on-market acquisition, so that the State
may require the provision of additional or
replacement security, rather than this comprising a
major default or default termination event in the first
instance.
Changes in law since the The Standard Project Deed predates the Local Jobs
Standard Project Deed was First Policy and ipso facto insolvency law reforms and
published has been updated to address these.
Commercial Acceptance Project Co has recourse to an expedited dispute

resolution process if it disagrees with a determination
made by the State in relation to the achievement of
Commercial Acceptance.
Development Phase Finance Incorporates provisions to entitle Project Co, in the

Amounts case of a change compensation event, to not only
incremental interest caused by the relevant event, but
to the recovery of amortising principal that would
have been paid during the period of delay.
Escrow Material Incorporates provisions to provide the parties with

flexibility to agree whether any relevant intellectual
property be treated as escrow material.
Extension of time regime The Standard Project Deed was updated during the
tender process to incorporate amendments to the
extension of time regime, including to provide for
interim determinations of extensions of time by the
Independent Reviewer.
Interface Works Interface works regime is modified to reflect that:

• there are no relevant interface parties identified at
Contract Close, but Project Co and any relevant
subcontractor may be required to enter into a
direct interface deed during the term as a
modification, and
• works undertaken by VU during the Operational
Phase are interface works (other than fit out works
undertaken by VU shortly following Commercial
Acceptance).
Minor Works The minor works regime is modified to accommodate

the periodic agreement of pricing for the performance
of specified minor works and to provide separate
minor works limits for the hospital and for the VU
Project Components.
Proposal issues Incorporates provisions which require Project Co to

resolve identified issues during the design
development process.
Refinancing The Standard Project Deed was updated during the

tender process to incorporate amendments to the
refinancing clause. The refinancing clause is also
modified to incorporate further departures in relation
to the calculation of the Refinancing Gain.
11.3 General obligations of Project Co
The full detail of Project Co’s obligations is contained in the Project Deed and associated
documents. The key obligations of Project Co over the course of the Project are
summarised below.
11.3.1 Development Phase
Project Co is responsible for the design and construction of the facility and financing of
the Development Activities, including:
• conduct of the design development process with the State, Western Health and
Victoria University user groups
• construction and commissioning of the hospital and the VU Project Components by
the date for Commercial Acceptance
• selection, procurement, installation and commissioning of Equipment, including ICT
equipment, and transfer of specified equipment from the existing hospital
• construction of the In-Hospital Opportunities and the Tiernan Street Building and
fitout of specified areas by the date for Commercial Acceptance
• landscaping and grounds works
• completion of utilities and road infrastructure works external to the Project Site and
return of such works to the relevant authorities
• obtaining and maintaining certain insurances
• Services mobilisation, including the transfer of relevant employees from Western
Health to the Services Contractors
• drawdown of debt and equity finance in accordance with the financing documents.
11.3.2 Operational Phase
Project Co is responsible for the provision of the following Services throughout the
Operational Phase to designated areas3, in accordance with the performance
standards specified in the Project Deed:
• General services
• FM Help desk services
• Building management services (asset maintenance and lifecycle replacement,
including for specified Equipment)
• Security services
• Waste management services
• Pest control services
• Cleaning services
• Patient food services
• Portering services
• Carpark and traffic management services
• Grounds and gardens maintenance services
• Utilities management services
• Materials distribution services
• PSA and dedicated attendant services.
Project Co is also responsible for the following during the Operational Phase:
• undertaking minor works within budgeted allowances
• obtaining and maintaining certain insurances
52—53
3
Provision of defined Services to the commercial opportunities areas varies depending
upon their location and nature.
• undertaking all necessary tasks to ensure that the Project assets are handed back to
the State on expiry of the Operational Phase in the required condition and in
accordance with the end of term requirements set out in the Project Deed, and
• repayment of debt and payment of distributions to equity in accordance with the
provisions of the financing documents.
11.4 General obligations of the State
The State’s obligations under the Project Deed include the following:
• procuring planning approval for the Project
• granting or procuring the grant of the Development Phase and Operational Phase
licences to Project Co to enable Project Co to access the Project Area and the
Sunshine Hospital Carpark (as necessary)
• reviewing and commenting on design documentation and other material that will be
submitted by Project Co in accordance with the Project Deed
• determination of the achievement of Commercial Acceptance, and
• payment to Project Co of the State Contribution following Commercial Acceptance
and the MSP during the Operational Phase, subject to any abatement that may apply
if Services are not delivered to the required performance standard.
11.5 Changes in cost to the State
11.5.1 Change in law and policy
The State bears the risk of cost increases or savings arising from certain changes in law
and changes in policy that occur after Contract Close.
11.5.2 Relief events
Subject to certain conditions, Project Co may be entitled to performance relief under
the Project Deed and to payment by the State of certain additional costs and expenses
incurred by it as a result of the following events:
Table 18: Relief events
Relief Event Details of relief event
The State will provide Project • A breach by the State of a Project Document
Co with an extension of time • Certain acts or omissions of the State or any State
and costs during the Associate when acting in connection with the
Development Phase for: Project
• Certain proximate interface works and site
interface works
• Cessation or suspension of the construction
activities or a material change to the way they are
carried out because of a pandemic direction in
certain circumstances
• Cessation or suspension of the construction
activities or a material change to the way they are
carried out because of a direction, order or
requirement of the law in connection with a
heritage claim or native title claim
• Industrial action which occurs in the direct vicinity
of the Project Site and is caused by the State when
acting in connection with the Project or a State
Associate (subject to certain exclusions)
• If the State directs the suspension of the
construction activities (subject to certain
exclusions)
• In certain circumstances, the exercise of the State’s
right of step-in
• Any other event expressly stated to be a
compensable extension event.
Relief Event Details of relief event
The State will provide Project • Any breach of a direct interface deed by a direct
Co with an extension of time interface party
(but not costs) during the • Any other event expressly stated to be an
Development Phase for: extension event.
The State will provide Project • A breach by the State of a Project document
Co with relief from • A fraudulent, reckless, unlawful or malicious act or
performance and costs omission of the State when acting in connection
during the Operational with the Project or any State Associate
Phase for: • Cessation or suspension of the services or a
material change to the way they are carried out
because of a direction, order or requirement of the
law in connection with a heritage claim or native
title claim
• Cessation or suspension of the Services or a
material change to the way they are carried out
because of a pandemic direction
• Industrial action which occurs in the direct vicinity
of the Project Site and is caused by the State when
acting in connection with the Project or a State
associate (subject to certain exclusions)
• Certain proximate interface works and site
interface works
• Any other event expressly stated to be a
compensable intervening event.
The State will provide Project • If the State directs the suspension of the Services
Co with relief from (subject to certain exclusions)
performance (but not costs) • In certain circumstances, the exercise of the State’s
during the Operational right to step-in
Phase for: • Any breach of a direct interface deed by a direct
interface party
• Any other event expressly stated to be an
intervening event.
The State will provide Project • Earthquake, natural disaster, bushfire, landslide,
Co with relief from seismic activity, tsunami or mudslide, and fire,
performance, an extension explosion or flood caused by those events
of time and certain costs for: • Severe winds
• A 100 year flood event
• Certain risks that are uninsurable at
Contract Close
• In certain circumstances, utility interruptions
• Suspension of activities due to the occurrence of a
force majeure event
• The exercise of the State’s right to step in due to
the occurrence of a force majeure event.
54—55
11.5.3 Modifications and augmentations
The Project Deed contains the following mechanisms for effecting changes to the scope
of Project.
11.5.3.1 Modifications (including pre-agreed modifications)
The State may, at its sole discretion, request Project Co to implement changes to the
Project assets and services, provided that Project Co provides a value for money offer to
implement the change and the State adequately compensates Project Co in
accordance with the Project Deed. This regime captures minor modifications and other
changes to the Project scope, but excludes augmentations and minor works.
The Project Deed includes pre-agreed modifications where the scope, modification
election date and methodology for determination of the modification cost or saving in
relation to the Services is ‘pre-agreed’. These include the following adjustments to be
effected prior to the commencement of the Operational Phase:
• Food Volume Adjustment – to adjust meals pricing following nomination of pricing of
specified food items by a State nominated supplier
• Services payment adjustment – to adjust indexation or rates of specified items for
the period from Contract Close up to the operations commencement date.
11.5.3.2 Augmentations
This regime captures substantial changes to the Project requirements and activities
which the State considers is likely to cost in excess of $100 million, and which the State
determines should be delivered pursuant to the augmentation process. This process
entails up front agreement of the process for the tendering and implementation of the
augmentation, including fees and margins payable and equity returns subject to an
agreed cap.
11.6 Default and termination regime
11.6.1 Default
A default by Project Co under the contractual arrangements will entitle the State to
various remedies. Where a default has occurred, the State will, in most circumstances,
be required to give Project Co an opportunity to cure the default. If the default is not
cured by Project Co within the required cure period, it will escalate to a major default.
The Project Deed also elevates a number of events to immediately be classified within
the major default category (for example a failure to achieve commercial acceptance by
the required date or a failure to maintain the required insurances).
In respect of major defaults, Project Co is required to provide a cure program to be
reviewed and agreed by the State.
Where Project Co fails to cure the major default in accordance with the agreed cure
program (if the major default is capable of cure) or to comply with the reasonable
requirements of the State (if the major default is not capable of cure), this will generally,
subject to financier cure rights, give rise to the State’s right to terminate the
Project Deed.
Certain events of default are so severe that they are not subject to a cure regime. These
events give rise to a State termination right immediately upon their occurrence (for
example the insolvency of Project Co or continued poor performance during the
Operational Phase).
11.6.2 Step-In
In addition to triggering termination rights (or potential termination rights), major
default events and default termination events may trigger additional State rights and
remedies including the right to step-in to remedy the situation (that is, the right to
assume control and management of the Project).
The circumstances where the step-in rights for the State, as specified in the Project
Deed, can be triggered include when:
• a major default has occurred and Project Co is not complying with its obligations with
respect to the major default;
• a default termination event has occurred;
• a cure notice has been issued by a key subcontractor; or
• a law entitles the State to a statutory right of step-in.
The default-related step-in right is subject to any step-in rights the financiers may have.
During any step-in associated with a default or which is otherwise caused by Project Co,
the MSP will be abated to the extent that the Services are not being provided.
11.6.3 Termination
Where the Project Deed is terminated before the natural expiry of the intended 25 year
Operational Phase, Project Co may be entitled to a termination payment. The Project
Deed may be terminated as a result of the following:
• the occurrence of a default termination event
• a force majeure Termination Event, and
• voluntary termination by the State.
The basis for the calculation of the termination payment will be determined by the
reason for the termination as summarised below.
Table 19: Termination scenarios
Event Trigger Termination Payments
Default The State may terminate the The Project’s fair market value
termination Project Deed if a default determined by retendering or an
event termination event occurs independent valuer (where there
(including where a major is no liquid market, or the State
default has not been remedied elects not to conduct a retender).
in accordance with the
Project Deed).
Voluntary The State may at any time, for The outstanding debt as at the
termination reasons of its own choosing, termination date and other
unilaterally elect to terminate reasonable costs, including:
the Project Deed for • a capped amount of break
convenience. costs to key subcontractors
• a return to equity
• agreed break costs
attributable to commercial
opportunities.
Termination for The occurrence of a force The outstanding debt as at the

force majeure majeure termination event. termination date plus other costs.
56—57
11.7 Finance and security arrangements
Project Co is responsible for the provision of debt and equity finance for the Project. Its
funding structure comprises short term debt drawn progressively from Financial Close
(hedged by way of a swap) and equity committed at Financial Close by way of an equity
letter of credit, with the equity funding drawn down during construction.
As stated in Section 7, a proportion of the total debt at Commercial Acceptance will be
repaid by way of a State Contribution. The remaining debt is for an initial period of six
years from Financial Close. It is assumed that debt will then be refinanced at regular
intervals over the remainder of the Project term.
The State will not share in any refinancing losses but will be entitled to 100 per cent of
the benefit of any refinancing gain which arises from a change in the manner or timing
of payment of the State Contribution and 50 per cent of the benefit of any other
refinancing gain, after allowing Plenary Health to recoup any prior refinancing losses.
The State takes security over all of Project Co’s rights and undertakings as security for
performance of Project Co’s obligations. Under the Finance Direct Deed, the State,
financiers and Project Co agree the usual priority and enforcement rights whereby the
State obtains first priority for out of pocket amounts (e.g. on step-in) and amounts
payable to it on termination.
11.8 State rights at expiry of contract
The Project Deed requires Project Co to hand back the Project assets at the expiry of
the Operational Phase (or on earlier termination) for nil consideration in a pre-defined
state known as the handover condition. The State will then resume control of
those assets.
To ensure that the assets are able to meet the handover condition at the end of the
Project, in the two years prior to expiry of the Operational Phase, an independent expert
will be appointed to undertake reviews to ensure that lifecycle and maintenance works
are completed so that the assets will meet the relevant handover condition.
If the remaining MSPs are less than 120% of the estimated cost of delivering the works to
meet the handover condition, Project Co must elect to provide additional bonding or
allow the State to deposit a portion of the remaining MSPs into an escrow account.
11.9 Audit and inspection rights of the State
The Project Deed includes contractual rights for the State to be given access to
information and data, including to:
• inspect, observe or test any part of the works, infrastructure or project activities
• examine and make copies of the accounts and other records, reports and all
documents reasonably requested of Project Co or any of its key subcontractors in
connection with the project, and
• disclose information in connection with the project to satisfy the disclosure
requirements of the Victorian Auditor-General or to satisfy the requirements of
Parliamentary accountability.
58—59
12. Victoria University arrangements
12.1 Tripartite Agreement
Prior to issue of the RFP, the Secretary entered into a Tripartite Agreement with Victoria
University concerning the potential inclusion of the VU Project Components within the
Project, subject to planning approval and affordability constraints. These matters were
resolved throughout the tender process resulting in inclusion of these components in the
Project at Contract Close.
12.2 Other agreements
To enable the construction and operation of the Pedestrian Footbridge, the following
agreements have also been entered into:
• Airspace Licence: between the Head, Transport for Victoria and the Secretary to allow
for the construction of a bridge across Ballarat Road
• VU Licence: between Victoria University and the Secretary to provide for the bridge
landing on the northern side of Ballarat Road, together with access for related
construction works.
60—61
Appendix A Glossary
Acronyms and Definitions
Defined Term/Acronym Meaning
CCC Means the Project’s Community Consultative Committee
Commercial Means the stage when Project Co has achieved the State’s
Acceptance design, construction and commissioning requirements in
accordance with the Project Deed.
Contract Close Means the date of execution of the Project Deed and
associated documents by the State and Project Co being
10 March 2021.
D&C Contractor Means Multiplex Constructions Pty Ltd.
Department Means the Department of Health of the State of Victoria.
Development Activities Means the activities which Project Co is required to

perform in the Development Phase.
Development Phase Means the period beginning on Financial Close and ending
upon achievement of Commercial Acceptance.
Equipment Means the furniture, fixtures and equipment required for

the hospital and the VU Space as specified in the PSDR.
ESD Means ecologically sustainable development.
Evaluation Criteria Means the criteria for evaluating Proposals, as set out in
Appendix B.
Expiry Date Means the earlier of the date which is 25 years from
Commercial Acceptance or the date of early termination of
the Project Deed.
Expression of Interest Means expression(s) of interest prepared in respect of the

or EOI Invitation for EOI.
Federal Street Building Means the building to be located on Federal Street

incorporating the gym, community hub and carparking.
Financial Close Means the date upon which all conditions precedents
under the Project Deed were satisfied or waived, being 11
March 2021.
Financial Close Means the financial model submitted by Project Co as

Financial Model updated at Financial Close.
ICT Means information and communications technology
In Hospital Means the Project Co commercial opportunities other than

Opportunities those located in the Tiernan Street Building.
Invitation for EOI The new Footscray Hospital Invitation for EOI issued in
June 2019.
Local Content Has the meaning given in Section 3(1) of the Local Jobs
First Act 2003 (Vic).
Local Jobs First Policy Has the meaning given in s. 4 of the Local Jobs First Act
2003 (Vic).
Major Projects Skills Has the meaning given in s. 4.6 of the Local Jobs First Act
Guarantee or MPSG 2003 (Vic).
Minister for Health Means the Victorian Minister for Health.
Monthly Service Means the payments made to Project Co as described in

Payment or MSP Section 5.
National PPP Policy The suite of guidance material published by Infrastructure

and Guidelines Australia and available at https://infrastructure.gov.au/
infrastructure/ngpd.
NPC Means Net Present Cost.
Operational Phase Means the period beginning the day after Commercial
Acceptance and ending upon the Expiry Date.
Partnerships Victoria Means the Victorian Government framework that requires

Framework compliance with both:
– the National PPP Policy and Guidelines
– the Partnerships Victoria Requirements.
Partnerships Victoria Means the State’s Partnership Victoria policy. Further

Requirements information can be obtained at https://www.dtf.vic.gov.au/
public-private-partnerships/policy-guidelines-and-
templates.
Pedestrian Footbridge Has the meaning given in Section 3.3.2.
Plenary Health or Plenary Health (NFH) Pty Ltd as trustee for the Plenary
Project Co Health (NFH) Unit Trust.
Points of Care or POC A measure of hospital capacity comprising inpatient beds

and acute facilities.
PPP Public private partnership.
Precinct Means the area in the vicinity, but outside, of the Project
Site, including the Footscray Metropolitan Activity Centre,
Footscray Park, Victoria University's Footscray Park
campus, railway stations and other nearby amenities,
roads and public transport services.
Preferred Respondent Means the Respondent invited to proceed to the

negotiation and completion phase.
Project (or new Means the new facilities as generally described in Section
Footscray Hospital) 3.3 of this RFP to be delivered by Project Co and which are
to replace the existing Footscray Hospital.
Project Deed Means the principal contract between the State and
Project Co that establishes the rights and obligations of
the parties in respect of the Project.
62—63
Project Objectives Means the State’s objectives for the Project, as outlined in
Section 1.3.
Project Scope and Means the technical specifications for the Project which
Delivery Requirements are annexed to and form part of the Project Deed.
or PSDR
Project Site Means the site on which the new Footscray Hospital is to be
located, as described in Section 1.4.
Proposal Means a proposal submitted by the Respondent(s) in

response to the RFP.
Public Sector Means the Public Sector Comparator defined in

Comparator or PSC Partnerships Victoria policy as the “estimated hypothetical
risk-adjusted cost if a project were to be financed and
implemented by the Government”.
Request for Proposal Means the documents entitled ‘Request for Proposal’
or RFP issued by the State to the Respondents in November 2019.
Respondent Means the parties which submitted a Proposal in response

to the RFP as set out in Section 3.1.
Reviewable Services Means the services for which a periodic pricing review may
be undertaken in accordance with the Project Deed.
RFP Phase The phase of the tender process which:

• commenced on the release of the RFP to Respondents
for submission of detailed, fully costed and binding
Proposals, and
• ended on the selection of the Preferred Respondent.
Secretary Means the Secretary to the Department of Health, a body

corporate established under the Public Health and
Wellbeing Act 2008
Services Means the facilities management services which Project

Co is to provide during the Operational Phase as described
in Section 11.3.2.
Services Contractor(s) Compass Group Healthcare Hospitality Services Pty Ltd

and Honeywell Ltd.
Services Specification Means the ‘Services Specification’ included in the PSDR

which sets out the requirements for the Services, KPIs and
performance penalties.
Social Procurement Means Victoria's Social Procurement Framework published

Framework 26 April 2018 by the Victorian Government, available at
http://buyingfor.vic.gov.au/social-procurement-framework.
Standard Project Deed Means the Partnerships Victoria standard form Project
Deed for social infrastructure projects dated March 2018.
State Means the Crown in right of the State of Victoria and its
entities.
State Contribution Means the capital contribution to be made by the State

described in Section xxx
Sunshine Hospital Means the carparks at Sunshine Hospital, located at 176

Carpark Furlong Road, St Albans, Victoria.
Tiernan Street Building Means the building to be located on Tiernan Street

incorporating food and beverage outlets, office space and
a childcare facility.
Value Creation Means the Project's value creation objectives set out in
Objectives Section 3.4.
Value Creation and Means the Value Creation and Capture Framework as
Capture Framework referred to on https://www.vic.gov.au/value-creation-and-
capture-framework.
VHBA Means the Victorian Health Building Authority.
Victoria University Means the Victoria University, a body corporate and body
politic under the Victoria University Act 2010 (Vic).
Victorian Industry Means the Local Jobs First – Victorian Industry

Participation Policy Participation Policy made pursuant to s. 4 of the Victorian
or VIPP Industry Participation Policy Act 2003 (Vic).
VU Project Components Means the VU Space and the Pedestrian Footbridge.
VU Space Has the meaning given in Section 3.3.2.
Western Health Means Western Health (ABN 61 1667 35672), a body

corporate established under the Health Services Act 1988
(Vic).
64—65
Appendix B RFP Evaluation Criteria
The State evaluated each Proposal against detailed evaluation criteria.
Qualitative Evaluation Criteria / Sub-Criteria

Evaluation Criterion A: Master Plan and Architectural Form
A1 Master Plan
A2 Architectural Form
A3 Landscape
Evaluation Criterion B: Functional and Operational Design
B1 Functional and Operational Efficiency
B2 Interior Design
B3 Engineering Solution
B4 Flexibility and Expansion Capability
B5 Ecologically sustainable development (ESD)
Evaluation Criterion C: Equipment

Evaluation Criterion D: Project Management
D1 Project Co Management
D2 Development Phase Program
D3 Design Development Process
D4 Construction Methodology
D5 Acceptance Requirements
Evaluation Criterion E: Services Solution
E1 Services Mobilisation Plan
E2 Management of Services Delivery
E3 Service Specific Solutions
Evaluation Criterion F: Commercial and Financial Solution
F1 Equity Management and Commercial Solution
F2 Acceptance of Risk Profile
F3 Financial Capacity
F4 Financing Structure
F5 Certainty and Robustness of Financing Proposal

Qualitative Evaluation Criteria / Sub-Criteria
Evaluation Criterion G: Commercial and Value Creation Opportunities
G1 Design and Functionality
G2 Achievement of Value Creation Objectives
G3 Legal and Commercial
Evaluation Criterion H: Government Policy

H1 Social Procurement
H2 Communications and Community Relations Plan
Evaluation Criterion I: Industry Development

Evaluation Criterion J: Jobs Outcomes
Quantitative Evaluation Criteria : Risk Adjusted Cost
• Risk Adjusted Cost of Proposal
• Financial Assumptions
• Value for Money Enhancements and other cost impacts
66—67
Appendix C Public Interest Test
Protecting the public interest
Public interest Standard Assessment
element
Effectiveness The new Footscray Hospital aligns with The new Footscray Hospital is closely aligned with a
all relevant government policies and, in number of State policy objectives, in particular, those
Is the project
particular, the following key policies: which relate to improving health care in Victoria’s growth
effective in
areas along with access to jobs and services.
meeting Department of Health and Human
government Services (DHHS) Health 2040 (2016) In this context, the Business Case and Request for Proposal
objectives? for the new Footscray Hospital specified an output/service
• Sets out the government’s vision for delivery solution which is consistent with government
better health, access, and care in policy as outlined below.
Victoria’s health system.
The new Footscray Hospital sits alongside other hospital
Plan Melbourne (2017) projects in West Victoria such as Sunshine Hospital
• Forecasts that the inner west will emergency department redevelopment, the Werribee
grow by more than 147,000 residents Mercy Hospital expansion and the proposed new hospital
by 2036 based on data from VIF2016. in Melton as well as a range of other initiatives seeking to
• Designates Footscray as a meet the needs of a growing and ageing population and
Metropolitan Activity Centre. improve the amenity of the West’s deteriorating hospital
facilities.
DHHS Strategic Plan 2019
At the time of funding the Project, around 11.7% of the
• There is increased demand on population in Western Melbourne are low income or
hospital services due to long term welfare dependent families compared with 8.7% of the
health conditions. average population across the State. Patients in
• Contributing to a stronger Victorian Melbourne’s West are also presenting with more chronic
economy through creating jobs in the disorders compared to similar hospitals in Victoria.
construction sector through major
The new Footscray Hospital enables residents to access
capital investments.
health services within their region rather than travel to the
Department of Jobs, Precincts and inner metropolitan areas, which are at capacity.
Regions – Priority Precincts The new Footscray Hospital will employ approximately
A stronger health offer in Footscray will 2,000 people at peak construction and facilitate the
give people better access to medical transformation of Footscray into a tertiary level health
and care services. education precinct.
Local Jobs First Policy The new Footscray Hospital (including through the
partnership with Victoria University) will unlock additional
• The policy seeks to drive local
private and education investment in Footscray and enable
industry development by specifying
establishment of a new health, education, and community
local content and Major Project Skills
precinct for the inner west. The new Footscray Hospital
Guarantee (MPSG) requirements.
also provides services (beyond the core hospital) that are
Value Creation and Capture for the benefit of the community consistent with the Value
Framework and Social Procurement Creation and Capture Framework.
Framework The Local Jobs First and Social Procurement
• These policies seek to maximise the commitments form part of the Project’s contractual
social, economic, and environmental documentation with Project Co.
outcomes delivered from
Government investment
element
Accountability The new Footscray Hospital complies The community will be well informed about the obligations
and with all Victorian Government of both the Government and private sector partners
transparency accountability and transparency through several mechanisms, including:
policies and obligations including
Do the • details of the relevant contracts, subject to commercial-
under the:
partnership in-confidence considerations, are published in
arrangements • Freedom of Information Act 1982 (Vic); accordance with Victorian Government policy;
ensure that: • Victorian Government Purchasing • information on the new Footscray Hospital’s
the community Board Probity Policies; performance being available in the department’s
can be well- • Audit Act 1994 (Vic); and annual report once the hospital is operational;
informed about • the Freedom of Information Act applying to the new
The monitoring role of the Health
the obligations Footscray Hospital;
Complaints Commissioner in relation
of government to Department of Health and Project • the Auditor-General will have access to project
and the private Co’s obligations and performance information in accordance with the Audit Act;
sector partner; standards. • Victorian Government Purchasing Board Policies were
and applied to the tender process;
they can be • an independent probity adviser oversaw the
overseen by the procurement process to ensure the process was fair and
Auditor General transparent and conducted in accordance with the new
Footscray Hospital’s Probity Plan. The probity adviser
provided sign-off to government following the
conclusion of the evaluation process and negotiation
process with Plenary Health; and
• the Health Complaints Commissioner resolves
complaints about healthcare and the handling of
health information in Victoria. The Commissioner can
also investigate matters and review complaints to help
health service providers improve the quality of their
service. The Commissioner acts independently
and impartially.
68—69
element
Affected The new Footscray Hospital must Key government stakeholders have been consulted during
individuals and conduct, or be compliant with: the procurement, negotiation and completion phases for
communities • an appropriate public consultation
the new Footscray Hospital and will continue to be
consulted during the Development Phase (as relevant).
Have those process with those individuals/
The following individuals/groups were identified as being
affected been groups identified as being affected
affected by the new Footscray Hospital:
able to by the new Footscray Hospital;
contribute • the Local Jobs First (including the • Government stakeholders including but not limited to
effectively at Victorian Industry Participation Western Health, Department of Treasury and Finance,
the planning Policy (VIPP) and MPSG) and Social Department of Premier and Cabinet, Department of
stages, and are Procurement Policy; Transport, Department of Education and Training,
their rights • environmental, OH&S and other Department of Jobs, Precincts and Regions,
protected assessments of the Project Area; Department of Environment, Land, Water and Planning
through fair • Charter of Human Rights and
(including the Victorian Planning Authority) and
appeals Responsibilities Act 2006 (Vic); and
Treasury Corporation Victoria;
processes and • Maribyrnong City Council; and
• State and local government planning
other conflict • non-Government organisations and clinical and health
requirements.
resolution advocacy stakeholders including local residents,
mechanisms? businesses, education institutions such as Victoria
University and students and staff at Victoria University.
A Community Consultative Committee was established in
mid-2019 to provide a forum for members of the local
community to participate in the Project’s planning and
development through open dialogue and consultation.
The consultative committee is chaired by Member for
Footscray, Katie Hall MP, and includes:
• foundation members from key organisations such as
Maribyrnong City Council, health service providers
(including Western Health)
• community members selected through an independent
expression of interest process; and
• a limited number of invited community members invited
by the chairperson.
Victoria University is participating in the Project, including
the delivery of education and research space for its
exclusive use as part of the hospital and pedestrian
footbridge over Ballarat Road connecting its Footscray
Park campus with the new Footscray Hospital.
The Social Procurement Framework, VIPP and the MPSG
apply to the new Footscray Hospital. A set of Local Jobs
First and Social Procurement commitments have been
agreed with Project Co in relation to the new Footscray
Hospital. The Industry Capability Network (ICN) has been
consulted as part of project development and actively
participates by facilitating the registration of interested
parties. ICN informed the development and evaluation of
local content and MPSG requirements for the Project.
element
Equity The new Footscray Hospital must Contractual provisions include the required safeguards to
comply with all relevant government ensure that Project Co complies with all applicable laws,
Are there
laws and policies including: which include common law and the principles of equity.
adequate
arrangements • Disability Act 2006 and the The Charter of Human Rights and Responsibilities enables
to ensure that Commonwealth Disability patients to protect their rights to privacy, cultural
disadvantaged Discrimination Act 1992 (DDA); practices, life and protection from inhumane treatment.
groups can • Racial Discrimination Act 1975 (Cth); The hospital facilities will be DDA compliant and also cater
effectively • Sex Discrimination Act 1974 (Cth); for the culturally diverse community that use the hospital.
use the • Equal Opportunities Act 1995 (Cth);
infrastructure and
or access the
• Charter of Human Rights and
related service?
Responsibilities 2006 (Vic).
The key disadvantaged groups
expected to use the hospital and access
the services are those with physical
impairment, chronic disease and
the aged.
Public access The existing hospital in Footscray will be The new Footscray Hospital will continue to operate as a
open for ongoing public access until the public hospital, with Western Health continuing to provide
Are there
new Footscray Hospital is complete and all clinical services at the new hospital Therefore, there
safeguards that
ready for operation. will be no detrimental change to current levels of public
ensure ongoing
access.
public access to All required and statutory public access
essential will be provided, where it is safe to do so. Project Co will be the provider of facilities management
infrastructure? Appropriate contractual arrangements
services. Contractual provisions include adequate
safeguards to ensure the continued supply of services to
will be in place.
the public. The contract includes step-in rights to give the
State certain rights to take over the provision of services
by Project Co.
The new Footscray Hospital will service Victorian patients
and families (particularly those from the western region).
Alternative carparking arrangements have been put in
place by Victoria University for their staff and students
following acquisition and closure of the University’s
Footscray Park campus carpark for construction of the
new Footscray Hospital.
70—71
element
Consumer Government’s non-delegable duties in The Australian Charter of Healthcare Rights (Healthcare
rights relation to health services provision to Charter) outlines the rights and responsibilities of patients
all members of the community. while attending a public hospital in Victoria. It aims to
Does the
support a partnership between patients and their health
project provide Australian Charter of Healthcare Rights.
care providers by providing a clear statement of
sufficient Charter of Human Rights and expectations that is understood by both patients and
safeguards for Responsibilities 2006 (Vic) providers. The role of the Healthcare Charter may be
service
Service recipients to whom government summarised as follows:
recipients,
particularly owes a high level of duty of care such as • Everyone has the right to access healthcare.
those for whom seniors, low income earners, physically/ • Everyone has the right to the highest possible standard
government mentally disabled and people from a of physical and mental healthcare.
has a high level non-English speaking background.
• The Charter recognises and respects the diversity of
of duty of care, Victoria’s population.
and/or the most • Patients and health service consumers can have their
vulnerable? concerns addressed in a transparent and timely way
without affecting the way they are treated.
The new Footscray Hospital will provide sufficient
safeguards for service recipients by:
• clinical services continuing to be provided directly by
the public sector;
• appointment of competent service provider(s) (Project
Co) for the facilities management services;
• inclusion of performance standards required of the
service provider (Project Co);
• State step-in rights; and
• requiring in the PPP contract that Project Co comply
with all laws including any relevant health legislation.
Public information on hospitals is published on the
Department of Health’s website. This information covers
performance of the public hospital system including
individual hospital performance in areas such as elective
surgery access and emergency department performance.
Security State’s duty of care to the public. The PPP contract will require compliance with health and
safety legislation.
Does the Relevant laws and regulations covering
project provide OH&S requirements for Western The PPP contract will include performance standards such
assurance that Health’s personnel. as security response requirements required of Project Co.
community Minimum performance requirements
health and consistent with existing Western Health
safety will be obligations and contracts will
secured? be required.
Privacy Applicable privacy standards with The new Footscray Hospital will ensure the protection of
which the new Footscray Hospital is rights to privacy through adherence to a set of ‘Privacy
Does the
required to comply are set out in: Principles’ which includes the ‘Health Privacy Principles’ as
project provide
contained in the Health Records Act and the ‘Information
adequate • Freedom of Information Act 1982 (Vic);
Privacy Principles’ as contained in the Privacy and Data
protection of • Health Records Act 2001 (Vic);
Protection Act.
users’ rights to • Privacy and Data Protection Act 2014
privacy? (Vic); Broader compliance with the Freedom of Information Act,
Surveillance Devices Act and Charter of Human Rights and
• Surveillance Devices Act 1999 (Vic);
Responsibilities Act provide an additional layer of privacy
and
protection.
• Charter of Human Rights and
Responsibilities Act 2006 (Vic).
50 Lonsdale Street facebook.com/vhba
Melbourne 3000
twitter.com/vhba
VIC Australia
linkedin.com/company/vhba
GPO Box 4057
Melbourne 3001 vimeo.com/vhba
VIC Australia
vhba.vic.gov.au
72—PB

New Footscray Hospital - Project Summary

Uploaded by

Copyright:

Available Formats

New Footscray Hospital - Project Summary

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

New Footscray Hospital - Project Summary

Uploaded by

Copyright:

Available Formats

New Footscray

Part One – Project Overview 6

Part Two – Financial outcome 26

Part Three – Key Commercial features 39

Appendix B RFP Evaluation Criteria 65

Appendix C Public Interest Test 67

Figure 1: Project Objectives

Improve access to quality care Support operational efficiency

Use evidence-based design to Create an ecologically

Enable the delivery of integrated Deliver a vibrant community

1.4 Project Site and planning

1.5 A public private partnership

Project Stakeholder Description

Western Health The VHBA has collaborated with Western Health

Maribyrnong City Council As a key stakeholder, Council is represented on the

Victoria University Victoria University has been actively involved in the

Other Government The VHBA has engaged with Government

Community of A CCC has been established for the Project. Chaired

Invitation for EOI issued 20 June 2019

EOIs submitted 24 July 2019

Shortlist of Respondents announced 16 October 2019

RFP issued 9 November 2019

RFP Phase suspended 3 April 2020

RFP Phase recommenced 1 June 2020

Proposals submitted 9 July 2020

Negotiation and Completion Phase

Preferred Respondent announced 6 October 2020

Contract Close 10 March 2021

Financial Close 11 March 2021

Commercial and Financial Adviser PricewaterhouseCoopers

Legal Adviser Minter Ellison

Probity Adviser O’Connor Marsden & Associates

Technical Adviser Waterman AHW

Cost Consultant Donald Cant Watts Corke

Facilities Management Adviser RixStewart

Technology Adviser UT Consulting

FF&E Adviser Hospitech Facilities and Asset Management

Multi Day Med/Surg IPU beds 224 28

Critical Care beds 54

Multi Day ED Short Stay beds 24

Mental Health and Alcohol and other 8

Acute Dialysis beds 8

Perioperative Operational Rooms 8 2

Same Day Med/Surg beds 36 14

Rehab/GEM/Palliative Care IPU beds 96 4

Mental Health IPU beds 50 25

Drug and Alcohol beds 16

3.3.2 Victoria University

Value Creation Objective Description of value creation initiatives in the

Improve the social capital of In accordance with Government’s Social Procurement

3.5 Other Government policy outcomes

Government Policy Minimum requirement Contracted outcome Exceeded requirement

Local Content – 90% 90.39% 0.39%

Local Content – Services 80% 92.3% 12.3%

MPSG – Development 10% 10.5% 0.5%

MPSG – Services 10% 10% -

• Disability - 0.15% of D&C Price 0.15% of D&C Price

• Social enterprise - 0.2% of D&C Price 0.2% of D&C Price

Victorian Aboriginal 2% of hours 2% of hours in 0.5% of hours in