High Value High Risk and investment guidance material
High Value/High Risk project assurance processThe State Government's High Value/High Risk (HVHR) project assurance process is well under way. Under the HVHR process, which has been in place since December 2010, infrastructure and ICT projects identified as being high value and/or high risk will be subject to more rigorous scrutiny and approval processes.
Increased central oversight extends through various stages of investment development and implementation. The objective is to ensure that major infrastructure and ICT investments are delivered successfully, on time and budget.
The process applies to all general government sector infrastructure and ICT investments with a total estimated investment (TEI) of $100 million or more (regardless of funding source) and/or projects identified as high risk under the Gateway Project Profile Model (PPM) . The Government may also nominate projects to be part of this process.
HVHR investments are subject to extra scrutiny and ongoing involvement by the Treasurer and DTF as indicated in the summary table below. This includes a requirement to obtain the Treasurer’s approval of project documentation at key stages of the project’s lifecycle.
HVHR projects are also subject to compulsory Gateway Reviews and active monitoring throughout the life of the project.
|Business case Approval||
- Assessment of preliminary business case quality and policy merit.
- Treasurer’s approval of final business case: project deliverability (on time and on budget).
- Only robust business cases can be submitted to Government for funding consideration.
|Project tendering ||Treasurer’s approval of:
- all procurement documentation prior to release;
- preferred bid, prior to announcement; and
- contracts, prior to signing and any major variations.
|Project implementation ||Closer oversight by DTF of:
- time, scope and budget reporting and analysis; and
- any agreed interventions or remedial actions
Further information on the High Value/High Risk project assurance process is available from the HVHR Fact Sheet (260 KB PDF) (1.8 MB DOC)
Investment guidance material
Useful guidance material and processes supporting the development of robust and successful investment development and delivery.
The HVHR process is underpinned by a range of DTF investment guidance material which supports the development and successful delivery of robust investments. This investment guidance material, which also applies to non-HVHR investments, is progressively being reviewed and updated to ensure greater rigour in project design and implementation.
The Investment Management Standard
provides a way of identifying factors that are critical to shaping any investment and delivering greater value for money. At key points in the investment lifecycle these tools help an investor shape, monitor, control and evaluate an investment.
Investment Lifecycle Guidance material
presents guidance on processes, documents and other requirements to support robust development and delivery of all investment proposals. At each stage of the investment lifecycle this guidance helps investors to shape, monitor, control and evaluate an investment.
Related Victorian Government investment processes and policies
The Partnerships Victoria Framework
outlines the whole-of-government approach to the provision of public infrastructure and related ancillary services through public-private partnerships.
The Victorian Government Policy and Guide for Project Alliance Contracting
outlines the whole-of-government approach to the provision of public infrastructure through an alliance contract.
provide project assurance support to projects at key decision points in the investment lifecycle. As noted above, HVHR projects are required to undertake Gateway reviews.
The 2013-14 Budget papers are now available on the Budget website.
Future direction for public private partnerships
The Treasurer has announced a set of reforms that will guide the next phase of PPP investment in Victoria.
Natural Disaster Financial Assistance
Councils need to provide financial assistance claims for all eligible costs associated with infrastructure repairs for the 2010-11 Victorian floods, as well as any other natural disaster events which occurred during 2010-11, by 30 June 2013.
The 2012-13 Model Report is now available. This document assists Victorian government departments and other public sector entities with the planning and preparation of disclosures for the 2013 Annual Report.