/ Assessment Framework
TEMPLATES AND CHECKLISTS
Template for Stage 4: Business Case Assessment (continued)

Assessment Framework

TEMPLATES AND CHECKLISTS

Template for Stage 4:Business Case Assessment

1.Project overview and strategic alignment

1.1Document control details

PROJECT NAME / PROPONENT
VERSION / DATE COMPLETED / DD/MM/YYYY
CHANGES FROM PREVIOUS VERSION

1.2Prepared by

NAME / JOB TITLE / ORGANISATION
CONTACT DETAILS / Phone / Mobile / Email
DATE / DD/MM/YYYY

1.3Approved by

NAME / JOB TITLE / ORGANISATION
CONTACT DETAILS / Phone / Mobile / Email
DATE / DD/MM/YYYY

1.4State/territory government approval

State/territory government impacted

NSW ACT VIC QLD WA NT TAS

Summary of impact description

Please provide a brief description of the potential project impacts on the state or territory governments identified

Outline level of support

Describe the stakeholders involved in the long listing process and their relevance to the problem/opportunity.

State/territory government official

NAME / PHONE / EMAIL

(add rows as necessary)

1.5Project overview

Proposed project

Problem description

Project objective

1.6‘Do minimum’ base case description

Please describe the ‘do minimum’ base case.

1.7Project case options descriptions: (identify and describe each shortlisted project option)

Project option 1

Project option 2

(add and complete for each option assessed in the business case)

1.8Strategic alignment of the project options

STRATEGIC ALIGNMENT OF OPTION / Insert option name
Strategic alignment categories / Supporting evidence
Description of national significance. / Quantitative and qualitative evidence.
Alignment with infrastructure plans. / Such as transport master plans or similar.
Alignment with land use plans. / Such as regional land use plans or similar.
Alignment with jurisdictional strategic initiatives / economic objectives? / Such as policy documents or similar.
Alignment with potential complements and substitutes / For example, projects which are being planned, constructed or recently completed.
(add and complete for each option assessed in the business case)

2.Economic, social and environmental appraisal

2.1Demand modelling for the base case

Please describe the demand model, which has been used to measure demand, model inputs, model performance and for which years or time periods demand was modelled in the base case

2.2Demand modelling for each option

OPTION / Insert option name
Demand modelling for each option
Please describe the demand model, which has been used to measure demand, model inputs, model performance and for which years or time periods demand was modelled in the option
(add and complete for each option assessed in the business case)

2.3Land use, population and employment forecasts description

Please describe the land use projections and assumptions used in the demand modelling.

2.4Forecast costs for the base case

Please provide a breakdown of capital and maintenance costs

.

2.5Forecast costs for each option

OPTION / Insert option name
Forecast costs of project option
Please provide a breakdown of capital and maintenance costs
(add and complete for each option assessed in the business case)

2.6Forecast benefits for each option, incremental to the base case

OPTION / Insert option name
Forecast benefits of project option
Please provide a breakdown of benefits for the option, incremental to the base case.

(add and complete for each option assessed in the business case)

2.7Forecast benefits for each option, incremental to the base case

OPTION / Insert option name
Present value (4 per cent) / Present value (7 per cent) / Present value (10 per cent)
$ million / $ million / $ million
Benefit 1
Benefit 2
Benefit 3
Benefit 4
Benefit n
Total benefits
Capital costs
Operating costs
Total costs
Net present value (NPV)
Benefit–cost ratio (BCR)
(add and complete for each option assessed in the business case)

2.8Project option rankings

Rank / Time period / Benefit–cost ratio
1.
2.
3.
4.
5.

2.9Underlying cost–benefit analysis characteristics

This includes, but is not limited to:

■What discount rates have been used?

■What is the base year?

■What is the length of the evaluation period and why was this chosen?

■What is the length of the principal asset’s economic life?

Please advise if a peer review has been completed for the economic analysis. If possible, this should be included in the submission.

2.10Sensitivity analysis

This includes but is not limited to:

■A description of the assumptions/parameters that have tested and reasons for testing these assumptions/parameters

■How are the net present value and benefit–cost ratio results affected if different estimates and assumptions are used?

■What happens when discount rates are varied?

■What happens when a “worst-case” scenario (i.e. a 20% increase in capital costs and a 20% decrease in benefits) is tested?

3.Deliverability

3.1Option deliverability

Option deliverability / Insert option name
Delivery component / Details
Delivery strategy / What is the delivery strategy and operations strategy?
Describe whether the feasibility of recovery of full or partial costs from users through mechanisms such as tolling or those who benefit from the project has been considered. This could be through mechanisms such as value capture.
Provide a delivery options analysis and high level delivery schedule
Explain who will own operate and maintain the infrastructure.
Funding and financing / How will is the project proposed to be funded and financed?
Does the project include user funding?
If not, provide a justification for user funding not being included in the funding mix of the project.
If a mix of private and public funding or full public funding is proposed, what are the market failures that require this? What is the viability gap for the project?
Outline how the market failures could be remedied through reforms or regulation.
Describe expected funding sources: private sector, Commonwealth, State and local government, and the proposed split of funding. Describe why this funding split has been proposed.
Unmitigated project risks / What are the unmitigated project risks?
Describe the risk evaluation approach used to identify and mange risks
Provide a risk matrix that outlines the relevant risks identified for the project, the severity of the risk and how risks will be managed
Outline the governance structures, accountabilities and responsibilities for the risk management for the option.
(add and complete for each option assessed in the business case)

3.2Planning for the Post Completion Review

For each review item in the table below, please consider:

  • What data would need to be captured and how and when it would be captured?
  • What documentation would need to be maintained, how would it be maintained, and who would do it?
  • What expertise would be required and who would provide it for the review?

Review Criteria and other considerations / Details / Review Stage
Strategic Fit / What criteria and evidence should be used to assess the completed project’s alignment with its strategic objectives?
How will the project’s role in supporting the strategic objectives of any associated agencies or applicable jurisdictions be measured? / Initial (1 year after delivery), Subsequent (2-5 years), Longer term (30-50 years)
Initial, Subsequent, Longer term
Economic Fit / Review of project options developed – what criteria should be used to assess whether the appropriate project options were assessed?
How will differences between the estimated and actual values of the following outcomes be measured?
  • Capital costs
  • Operation costs
  • Other costs
  • Benefits
  • Other benefits
  • Net results
/ Subsequent, Longer term
Initial
Subsequent, Longer term
Initial, Subsequent, Longer term
Subsequent, Longer term
Subsequent, Longer term
Subsequent, Longer term
Delivery efficiency / Alignment of actual construction costs with budget
Appropriateness of project scope Variations in schedule and timing
Appropriateness of risk assessment and management
Appropriateness of procurement and delivery model
Appropriateness of financing methods and mechanisms / Initial
Initial, Subsequent, Longer term
Initial
Initial
Initial,Subsequent
Initial, Subsequent
Other lessons learned / Management and governance Change management Regulatory environment / Initial
Initial, Subsequent, Longer term
Initial, Subsequent, Longer term

4.Confidentiality

Confidentiality

Please identify if any of the information provided to Infrastructure Australia in this template is confidential. Please provide a brief explanation of the reasons for the request of confidentiality.

Information submitted confidentially will not be released or published by Infrastructure Australia without the written consent of the proponent.

1