WA Government announces changes to Market-led Proposal policy

Steps to incentivise more MLPs 2 min read

The Western Australian Government has announced changes to its Market-led Proposals (MLP) policy to improve timeframes, accountability and expectations surrounding the policy and lead agencies. The changes will be backdated to come into effect from 21 October 2022.

This Insight outlines the new policy changes. You should consider whether they will apply to current or existing proposals, and familiarise yourself with the updated process.

Key actions and considerations

• The changes amount to an improvement in process. This may in turn incentivise and encourage the private sector to bring more MLPs as the cost and process becomes more appealing.
• Current MLPs will be managed on a case-by-case basis to ensure proponents will not be disadvantaged as the transition to the new policy occurs.
• The changes may mean previous 'pipeline project ideas' in the financing of government infrastructure, providing goods or services or purchasing government-owned assets may benefit from reconsideration as to suitability as an MLP.

Market-led Proposal policy

MLPs are unsolicited proposals by the private sector to the government in relation to building and financing infrastructure, providing goods or services and purchasing government-owned assets. The MLP policy was designed to enable the private sector and state government to work together to stimulate jobs within the economy, by allowing the government to harness innovative ideas and solutions for specific matters.¹

The changes will supersede any current policies maintained by Western Australian government agencies and Government Trading Enterprises when dealing with MLPs.²

The key changes to be implemented

The key changes to be implemented in the MLP policy include:

• reducing duplications so the MLP process is decreased to only two stages rather than the current three;
• utilising a 'fast fail' mechanism that will allow the government to quickly decline proposals that are not aligned with Western Australian priorities, or are unsuitable for the MLP process;
• introduction of target timeframes at each stage of the MLP process;
• improved transparency by releasing more detailed summaries throughout the MLP process to ensure probity and commercial-in-confidence;
• the introduction of a new provision that will require proponents to commit to the MLP Probity Framework, to strengthen the probity requirements that are foundational to the MLP policy; and
• improving the current webpage and the content of past and present MLPs to make it easier for members of the public to navigate and access information.

Current and completed proposals

Since the MLP policy commencement, the Western Australian government has received 71 unsolicited MLPs.³ Of those proposals, 16 are currently being assessed and 2 have been completed.⁴ The successfully completed MLPs include:

• the introduction of Mako SmartRobotics to assist in joint replacement surgeries by enabling surgeons to make more accurate ligament and bone cuts; and
• the Solsan Development and Commercialisation by funding locally manufactured commercial hand-sanitiser dispensers in high-volume public places to encourage good hygiene practice and reduce the transmission of infectious diseases such as COVID-19.

The MLPs currently in Stage 2 of the assessment process are in the industries of Property, Aquaculture, Health and Water.⁵