In its draft report on public infrastructure, the Commission said it is currently seeking further feedback from the industry on the advantages and disadvantages of introducing an alternative procurement process such as the one outlined.
In its submission to the Commission, ISA explained that under this inverted bid model the government would first tender for the long-term owner-operator role, followed by separate bids for construction, operation and maintenance and debt.
ISA chief executive David Whiteley said this model would reduce the cost of bidding and encourage a wider variety of bidders, enabling a more competitive selection of the best construction, debt, and operations and maintenance solutions.
He also said it will “better price risk and avoid fee gouging by short term investors”.
Mr Whiteley said he was pleased the report has recognised the need for substantial policy reform in terms of the investment of superannuation savings into infrastructure.
“While it is already beyond doubt that superannuation is building Australia, this report reinforces just how much more can be done if policy makers can finally get it right,” he said.
“It has long been claimed that better connecting our superannuation savings pool with critical national infrastructure is the breakthrough we need, and the Commission reinforces that.”
