The Queensland Treasury has announced the release of an invitation for expressions of interest from interested parties to participate in Queensland’s Social Benefit Bonds Pilot Program.
‘Social benefit bonds’ (also known as ‘social impact bonds’) are a type of ‘payment by outcomes’ funding mechanism that engages private capital. Typically, instead of government paying directly for the provision of a social service, private investors provide capital to a service provider to achieve agreed-upon social outcomes. If these outcomes are achieved, there are cost savings to government, which are used to repay the upfront investment along with a financial return.
In announcing the pilot program, Treasurer Curtis Pitt said,
“The Palaszczuk Government’s first State Budget last year outlined plans for three pilot programs under our Social Benefit Bonds scheme where the government will partner with service providers and investors to tackle homelessness, reoffending, and issues affecting Aboriginal and Torres Island people.”
“For Queensland, this is a new way of tackling areas of longstanding concern. It is especially timely because over the next decade demand for acute and crisis services will increase as our population grows.”
“Our entire community will benefit by making sure problems are addressed in a cost-effective way and our fellow Queenslanders now at risk can be assisted and offered the security they need to lead productive lives and to make their contribution to Queensland’s future.”
The competitive tender process has been launched via Q Tenders and closes Thursday 24 March 2016 at 2.00pm EST.