N.J. Admin. Code § 17:49-8.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:49-8.2 - Project analysis

(a) An application to enter into a public-private partnership from a State government entity, shall include full documentation of the following information and analyses for submission to the Office of Public Finance, for approval to enter into a public-private partnership:

1. A narrative of the project, including the role and responsibilities of the parties, and an assessment of the project's viability, including the outcome and objectives to be realized by the project;

2. An assessment of the benefits or risks to be realized by the project;

3. The total risk-adjusted cost of the project, including costs associated with procurement, financing, design, construction, operation, and maintenance (including oversight costs) over the useful life of the asset that will be built or the length (in years) of the potential public-private partnership agreement, both for delivery as a public-private partnership and delivery under a conventional public sector approach, supported by evidence from comparable projects;

4. The maximum public contribution of public funds or assets that a State government entity will invest in or contribute to the project under the public-private partnership;

5. A comparison of the financial and non-financial benefits of the public-private partnership, including the technical, technological, or socioeconomic merit of a project, compared to other options including a public sector option or not proceeding with a project;

6. A list of risks, liabilities, and responsibilities to be transferred to the private entity and those to be retained by the State government entity as well as an analysis of the financial capacity of the private entity and State government entity, including an analysis of how the project's execution shall impact the financial status of the State government entity;

7. An analysis that delivery as a public-private partnership will optimize schedule, cost (on a risk-adjusted and useful life basis), and quality outcomes for the project, relative to a public sector option; and

8. Whether the project has a high, medium, or low level of project delivery risk and how the public is protected from these risks.

(b) A State government entity shall make the following findings to establish that a project is in the best interests of the public, and shall provide supporting documents, to support the findings that:

1. There is a public need for the project and the project is consistent with existing long-term plans;

2. There are specific significant benefits to the project;

3. The project, including procurement, land acquisition, development approval, and financial analysis costs, will cost less than the public sector option, or if it costs more, there are factors that warrant the additional expense;

4. There exists sufficient public sector financial and technical capability as well as market interest for the project to be delivered efficiently as a public-private partnership;

5. There are specific significant benefits to using the public-private partnership instead of other options including No-Build;

6. The private development will result in timely and efficient development and operation; and

7. The risks, liabilities, and responsibilities transferred to the private entity provide sufficient benefits to warrant not using other means of procurement.

(c) The State government entity shall also document that the findings were made at a public hearing or through notice to the public.

N.J. Admin. Code § 17:49-8.2

Adopted by 52 N.J.R. 898(a), effective 4/20/2020