Business Case - Methodologies

Assessment Framework: For initiatives and projects to be included in the Infrastructure Priority List

The Assessment Framework facilitates evidence-based development of infrastructure projects. The information contained in this document is essential for proponents looking to progress projects through the Infrastructure Australia assessment stages.

Infrastructure Australia encourages proponents, end users and commentators to read this document, and seek advice from Infrastructure Australia when required.

Link: Assessment Framework: For initiatives and projects to be included in the Infrastructure Priority List

This National PPP Policy (NPPP) provides a consistent framework that enables public and private sectors to work together to improve public service delivery through private sector provision of public infrastructure and related services.

Link: National Public Private Partnership Guidelines

The Australian Transport Assessment and Planning (ATAP) Guidelines are an infrastructure planning and decision-support framework applied to transport. They outline best practice for transport planning and assessment in Australia and are a web-based product available at http://atap.gov.au

They are endorsed by all Australian jurisdictions and are published by the Transport and Infrastructure Council. They are also closely aligned with the Infrastructure Australia Assessment Framework (IA 2017).

Link: Australian Transport Assessment and Planning Guidelines

This guide will assist Australian Public Service agencies to develop sound business cases when seeking to make significant ICT investments. Business cases developed in accordance with this guide are expected to be suitable for both internal decision making and as inputs to the ICT Two Pass Review process.

Link: ICT Business Case Guide

Building Queensland Framework

Provides an overview of the Business Case Development Framework including how the framework integrates with other government frameworks, overarching principles, structure, key features and governance arrangements.

Creative Commons Attribution 4.0 International licence (CC BY 4.0).

Link: Building Queensland Framework

Queensland’s Project Assessment Framework (PAF) is used across government to ensure a common, rigorous approach to assessing projects at critical stages in their lifecycle, from the initial assessment of the service required, through to delivery. The PAF’s application is not limited to infrastructure projects or public private partnership (PPP) projects. At each stage of a project, the project’s progress and quality is assessed to ensure that the project (and associated investment) meets strategic objectives and achieves value for money. Once a project ‘clears’ a stage, it can progress to the next. The Treasury Commercial Group manages the PAF and works with agencies to ensure consistent application.

This document is licensed under a Creative Commons Attribution 3.0 Australia licence.

Link: Project Assessment Framework

 The Market-Led Proposal (MLP) framework is an innovative pathway for business and government to work together to address community and infrastructure needs, while stimulating the economy and developing jobs in Queensland.

https://www.statedevelopment.qld.gov.au/industry-development/market-led-proposals.html

The NSW Infrastructure Investor Assurance Framework (IIAF) is an independent4 risk-based assurance process for the State’s capital projects. It identifies the level of confidence that can be provided to Cabinet that the State’s capital projects are being effectively developed and delivered in accordance with the Government’s objectives.

Link: Infrastructure Investor Assurance Framework

The NSW Government Business Case Guidelines have been developed to assist agencies and government entities with the preparation of business cases in line with best practice. This version of the Guidelines supersedes the previous Department of Premier and Cabinet Business Case Guidelines 2000, the Treasury policy papers Guidelines for Capital Business Cases (TPP08-05) and the Commercial Policy Framework: Guidelines for Financial Appraisal (TPP07-04). 

Link: NSW Business Case Guidelines

The NSW Government is continually seeking to capture value and explore unique and innovative ideas from industry that provide real and tangible benefits to the people of NSW.

The Unsolicited Proposals process is designed to encourage non-government sector participants to approach government with innovative infrastructure or service delivery solutions, where the government has not requested a proposal and the proponent is uniquely placed to provide a value-for-money solution. Its key objective is to provide consistency and certainty to non-government sector

Link: NSW Unsolicited Proposals

These guidelines provide practical assistance to anyone developing investment projects in Victoria. They help shape proposals, inform investment decisions, monitor project delivery and track the benefits of investments. They emphasise the need to better align the policies, programs and projects of departments and agencies with government priorities and outline the requirements under the high value high risk process. The guidelines will help ensure government investments provide maximum benefit to Victoria.

Link: Infrastructure Investor Assurance

The Asset Management Accountability Framework (AMAF) replaces Victoria’s existing asset management framework, Sustaining Our Assets and the related asset management series. The AMAF assists Victorian Public Sector agencies manage their asset portfolios and provide better services for Victorians.

Like Sustaining Our Assets, the AMAF is premised on a non-prescriptive, devolved accountability model of asset management. This allows public sector bodies to manage their assets in a manner that is consistent with government requirements, their own specific operational circumstances and the nature of their asset base.

The AMAF details mandatory asset management requirements as well as general guidance for agencies responsible for managing assets. Mandatory requirements include developing asset management strategies, governance frameworks, performance standards and processes to regularly monitor and improve asset management. The requirements also include establishing systems for maintaining assets and processes for identifying and addressing performance failures.

Link: Asset management accountability framework

The public private partnerships (PPP) model promotes efficiency and social and economic returns from government expenditure and ensures value for money over the longer term.

Since the 1990s, roads, prisons, hospitals, schools and many other projects have been procured by the Government working with the private sector to build high-quality infrastructure and services, using the PPP framework.

Link: Partnerships Victoria

The Government of South Australia (the government) is committed to the efficient and effective delivery of essential services to the community, while maintaining budgetary discipline that creates the framework for responsible investments in the longer term.  Early and effective planning, prioritisation and coordination of public sector initiatives by a lead agency1, that is based on clear and shared long-term strategic directions is essential. This is to ensure investments are delivered where and when needed, for a cost that represents ‘value for money’ (compared to alternative proposals), within budget capacity, and that provides for the sound management of risks.

Link: Guidelines for the evaluation of public sector initiatives

The Government of South Australia (the government) is committed to the efficient and effective delivery of essential services to the community, while maintaining budgetary discipline that creates the framework for responsible investments in the longer term.  Early and effective planning, prioritisation and coordination of public sector initiatives by a lead agency1, that is based on clear and shared long-term strategic directions is essential. This is to ensure investments are delivered where and when needed, for a cost that represents ‘value for money’ (compared to alternative proposals), within budget capacity, and that provides for the sound management of risks.

Link: SA Unsolicited Proposals

The main purpose of the Strategic Asset Management Framework (SAMF) is to provide a sound basis for decisions, which will ultimately be made by Cabinet, on the investment in, and the management and disposal of, significant government assets.

SAMF puts government policy objectives and practical service delivery to the Western Australian community at the forefront of asset investment planning and management.

Link: Strategic Asset Management Framework

This module clarifies the purpose, standards and model for the content, development and review of a business case. Before proceeding, readers should consult the SAMF Overview which describes how a business case is used during asset investment planning and decision-making.

Link: Strategic Asset Management Framework Business Case

The WA Governments Market-led Proposals (MLP) Policy is an innovative pathway for businesses and government to work together to create jobs and stimulate the economy. MLPs allow the government to harness good ideas, private sector investment and entrepreneurship to develop projects that benefit Western Australians.

Link:Market Led Proposals

The MLPP makes it easier to do business in the Northern Territory and deliver great outcomes for both Proponents and the taxpayers by creating an interactive process between the NT Government and Proponents. The process aligns the effort and costs of the Proponent with the level of interest from the NT Government to develop Proposals that address Northern Territory priorities.

Link: NT Market Led Proposals

In order to qualify as an unsolicited proposal, the project must have a minimum private investment contribution of $10 million or the creation of a minimum of 100 direct jobs in Tasmania. The project must also be a unique or innovative proposal initiated by the private sector and made to government to deliver outcomes that are desirable to government and which are not suitable to progress through standard competitive procurement processes. It involves private sector businesses approaching government for approval and support for the project, which could take the form of financial support, or other forms of support such as regulatory or social support, or the provision of government assets.

The Unsolicited Proposals: Policy and Guidelines applies to the General Government Sector.  All proponents are strongly encouraged to discuss their proposal with the Office of the Coordinator-General, on a confidential basis, in order to gauge the suitability of the proposal and discuss key requirements under the Policy and Guideline prior to making their submission.

Proponents submitting an unsolicited proposal to Government, will be directed to the Office of the Coordinator-General, and their proposal must include key information to facilitate a preliminary review by the Office of the Coordinator-General before calling an assessment panel to review the proposal and provide a recommendation to Cabinet. The Office of the Coordinator-General will assist successful preliminary proponents through a case management approach.

Link: Tasmania Unsolicited Proposals

A Better Brisbane Proposal should represent value for money for Brisbane and contribute to the Brisbane Vision. It should solve a Brisbane problem, address an opportunity for Brisbane or enhance services that Council provides. For Council to directly engage a supplier for a Better Brisbane Proposal, it will consider if:

• the outcome is fair to the supply market
• the proposal is advantageous for Brisbane
• value for money can be demonstrated and substantiated

Link: Better Brisbane Proposals

The Green Book is guidance issued by HM Treasury on how to appraise policies, programmes and projects. It also provides guidance on the design and use of monitoring and evaluation before, during and after implementation.

The Green Book should be used alongside other HM Treasury guidance:

• Managing Public Money which provides guidance on the responsible use of public resources
• The Aqua Book which sets out standards for analytical modelling and assurance
• The Magenta Book which provides detailed guidance on evaluation methods (Last updated 6 March 2018 )

Link: The Green Book: appraisal and evaluation in central government - UK

The objective of Better Business Cases is to provide objective analysis and consistent information to decision-makers, to enable them to make smart investment decisions for public value.

BBC is designed around an internationally recognised best practice standard, the five-case model. This builds a business case proposal by answering five core questions:

 What is the compelling case for change?

• Does the preferred option optimise value for money?
• Is the proposed deal commercially viable?
• Is the investment proposal affordable?
• How can the proposal be delivered successfully

Link: Better Business Cases - Guide to Developing the Detailed Business Case - NZ

Getting Infrastructure Right: The 10 Key Governance Challenges and Policy Options

High-quality public infrastructure supports growth, improves well-being and generates jobs. Yet, infrastructure investment is complex, and getting from conception to construction and operation is a long road fraught with obstacles and pitfalls. This OECD survey of the state of infrastructure policy making highlights a number of challenges that all countries face.

Link: The OECD Framework for the Governance of Infrastructure