THE state government will pay up to $5 million to the losing bidder in the Darling Harbour redevelopment but is resisting calls to make the bid public.

The Deputy Premier, Andrew Stoner, said the payment was required to restore confidence in ''doing business with government'', which he claimed took a ''king hit'' under the former Labor government.

An artist's impression of the proposed revamp of Darling Harbour.

The payment will be made despite state guidelines for public-private partnerships which say unsuccessful bidders for government projects should not be reimbursed, except in exceptional circumstances.

Last week Lend Lease won the rights to a $2.5 billion remake of Darling Harbour, comprising Australia's largest convention and exhibition space, a new entertainment centre, a 900-room hotel and residential precinct.