© The Treasury 1

Project Strategic Assessment

Indicative Business Case

Detailed Business Case

Implementation Business Case

Programme Strategic Assessment Programme Business Case

Single Stage Business CaseSingle Stage Business CaseProject Strategic Assessment

Project Detailed Business Case

Better Business Cases “Investing for change”

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Project Detailed Business Case

Purpose• Revisit the case for change and the preferred way forward• Determine the preferred option that optimises value for money• Outline the potential deal and assess affordability• Outline a plan for delivering the proposed project

3

Project Detailed Business Case

Strategic Case (Revisit)Action 9: Revisit the indicative business case

Strategic

4

Project Detailed Business Case

Economic caseAction 10: Economic assessment of the short-listed

options or preferred alternative procurement optionAction 11: Intangible benefits and costsAction 12: Risk and uncertaintyAction 13: Preferred option and undertake sensitivity

analysis

Economic

Stakeholders do the economic case thinking together

in one or more two hour workshops led by a facilitator.

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Analysis of the short-listed options

Option 1: Do Nothing

Option 2: Do Minimum

Option 3: Preferred

Minus

Option 4: Preferred

Way Forward

Option 5: Preferred Plus

Appraisal Period (years) 20 20 20 20 20

Capital Costs ($m) 0.0 22.5 23.9 31.6 45.7

Whole of Life Costs ($m) 14.4 24.2 49.7 70.7 90.9

Cost-Benefit Analysis of monetary costs and benefits at the Public Sector Discount Rate

Present Value of Benefits ($m)

2 25 75 115 126

Present Value of Costs ($m)

7 23 40 52 73

Benefit Cost ratio 0.3:1 1.1:1 1.9:1 2.2:1 1.7:1

Net Present Value (NPV, $m)

(5) 2 35 63 53

Multi-Criteria Analysis ranking of intangible costs and benefits (if any)

Criteria 1 1 3 3 5 1

Criteria 2 5 2 3 2 4

Criteria 3 3 2 5 1 3

Preferred option Yes

Economic

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Project Detailed Business CaseCommercial case – Preparing for the Potential Deal

Action 14: Procurement strategyAction 15: Service requirementsAction 16: Risk allocationAction 17: Payment mechanismsAction 18: Contractual and other issues

Financial case – Ascertaining Affordability and Funding Requirements

Action 19: The financial costing model

Commercial

Financial

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Project Detailed Business Case

Management case – Planning for Successful DeliveryAction 20: Project management planningAction 21: Change management planningAction 22: Benefits management planningAction 23: Risk management planningAction 24: Post-project evaluation planning

Management

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In summary

Detailed Business Case:

–Revisit the case for change and the preferred way forward–Determine the preferred option that optimises value for money–Outline the potential deal and assess affordability–Outline a plan for delivering the proposed project