Victorian Consolidated Legislation

Project Development and Construction Management Act 1994 - SECT 27

Treasurer may execute guarantees in respect of project

27. Treasurer may execute guarantees in respect of project



(1) The Treasurer, on such terms and conditions as the Treasurer thinks fit,
may-

   (a)  execute a guarantee in favour of a person or body in respect of the
        performance of any obligation by a person or body under an agreement
        or contract relating to a nominated project; or

   (b)  execute an indemnity or covenant in favour of a person or body in
        respect of any expense, loss, damage, cost or liability incurred or
        that may be incurred by that person or body under or in respect of an
        agreement or contract relating to a nominated project.

(2) The Treasurer must not execute a guarantee, indemnity or covenant under
subsection (1) unless he or she has first obtained the written consent of-

   (a)  in the case of a guarantee, indemnity or covenant relating to the
        obligations of the Crown under an agreement or contract, each Minister
        who is a party to the agreement or contract; or

   (b)  in any other case-

   (i)  any public body which is a party to the agreement or contract in
        relation to which the guarantee, indemnity or covenant is to be given;
        and

   (ii) the Minister administering the Act by or under which that public body
        is constituted.

(3) Section 30 of the Borrowing and Investment Powers Act 1987 applies to a
guarantee, indemnity or covenant under subsection (1) as if it were a
guarantee, indemnity or covenant under Part 5 of that Act.