The newly elected NSW Government has wasted little time introducing its foreshadowed infrastructure reforms. On 27 June 2011, the Infrastructure NSW Act 2011 (NSW) (the Act) received assent and commences upon proclamation. The Act is aimed at streamlining the way New South Wales deals with major infrastructure projects.

Infrastructure NSW

The central feature of the Act is the creation of a new state body called 'Infrastructure NSW', which the Premier has described as 'innovative, groundbreaking and a new body to sharpen NSW's competitive edge to achieve economic growth through strategic economic investment'.

Board

Infrastructure NSW is designed to take the politics out of infrastructure decision-making and will have a chairperson and an expert board that is made up of five persons from the private sector, the Chief Executive Officer (CEO) of Infrastructure NSW and the Director-Generals of the Department of Premier and Cabinet, Trade, Investment, Regional Infrastructure and Services, Department of Planning and Infrastructure and the Secretary of the Treasury. Former Liberal Premier, the Hon. Mr Nick Greiner will be appointed as the founding chairperson once the Bill is passed.

Strategic direction setting

The board will be primarily responsible for setting strategic policy direction, which will involve infrastructure planning, co-ordination, selection and the ultimate delivery of projects. The Bill envisages that the board will set a '20-year infrastructure strategy' together with 'five-year infrastructure plans', which are designed to deal with sequencing and project funding in line with annual state budgeting.

The board will carry out its role without political interference and if the Government rejects the board's strategic direction or any recommendations that are made, then the Government will have to be accountable to the electorate for its reasons to take a different path.

Main functions

The main functions of Infrastructure NSW under the leadership of the CEO is to ensure the organisation plays an integral role to develop a 'whole-of-state' approach in relation to infrastructure projects that require the involvement of multiple agencies. It is also incumbent upon the CEO to ensure Infrastructure NSW is appropriately staffed with specialists from both the private and public sectors and, where necessary, the CEO may second, employ or contract persons on a needs basis for short- and long-term projects. The CEO will answer directly to the Premier.

Project authorisation orders and 'step in' powers

The Act provides for the delivery of infrastructure projects outlined in the 20-year strategy and five-year plans and Infrastructure NSW will facilitate and co-ordinate with the relevant agencies. However in relation to major projects that are of high importance, the Premier will have the power to issue a 'project authorisation order', which will be a statutory directive to Infrastructure NSW to 'step in' and take total responsibility for the delivery of the project, though such power is likely to be used on rare occasions.

What are major infrastructure projects?

The Act introduces a new project type to be known as a 'major infrastructure project', which is a project with a capital investment value (CIV) of more than $100 million or is a project that in the opinion of the Premier is of a 'special kind' to warrant the co-ordination or involvement of Infrastructure NSW.

This new CIV and 'special kind' approach is different to the existing 'critical infrastructure project' and 'major infrastructure development' definitions under Part 3A of the Environmental Planning and Assessment Act 1979 (NSW) (EPAA), which are soon to be superseded with the likely repeal of Part 3A. Notably, the environmental and planning assessment requirements (including community consultation) under the EPAA still apply to any project.

Federal funding submissions

Finally, another very important function of Infrastructure NSW will be its co-ordination role in respect to funding submissions to the Federal Government, including agencies such as Infrastructure Australia, to ensure New South Wales receives an equitable share of Commonwealth infrastructure funds.

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