The Western Australian State Government recently closed submissions for draft guidelines on unsolicited bids for the sale or lease of state-owned land. This initiative represents a significant opportunity for private sector parties to deal exclusively with the State in leveraging previously unavailable resources for projects that:
- Are unique and innovative;
- Result in an economic, social or environmental benefit to the State;
- Delivers value for money to the State;
- Is feasible; and
- Align with Government policy.
Since the concept was flagged, Pracsys has been working with a number of parties to build an evidence-base to support their projects.
We take a systematic approach to socio-economic analysis that reflects the World Business Council for Sustainable Development’s (WBCSD) methodology. Such an approach considers the flow of project characteristics including:
- Inputs (the resources required to deliver the project);
- Activities (the activities whose effects are to be analysed and measured);
- Outputs (the results of the activities in question);
- Outcomes (changes to be experienced by the ‘communities of interest’); and
- Impacts (changes in the strategic objectives of the decision makers).
The diagram below summarises how such an approach relates to the unsolicited bid process.
Successful business cases are characterised by proponents who have a clear understanding of why a project will succeed, not just what the project is. These proponents, not coincidentally, have strong relationships with key communities of interest. They actively listen and refine ideas based upon open dialogue and feedback. Finally, they give comfort to funders through carefully designed delivery mechanisms that ensure short, medium and long-term sustainability.
Our role at Pracsys is to work with such project partners to unlock and explain the inherent value of their projects in light of ever-evolving needs and expectations of decision-makers.
The unsolicited bid process, if implemented well, represents a significant opportunity for much needed innovation and intervention. We welcome this initiative and look forward to proactively working with entrepreneurial partners to bring their ideas to fruition.