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Restart NSW Regional Water and Waste Water Backlog Program
Briefing of Shortlisted Applicants
16 March 2016
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Jenny Davis, Executive Director Infrastructure NSW
Glenn George, A/Senior Manager, DPI Water
Sam Samra, Senior Manager, DPI Water
Peter Fragiacomo, Principal Analyst, Department of Industry
Introduction
Probity Adviser
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Integrity and fairness in the process - all meetings are conducted in the presence of the Probity Advisor.
Any issues of a probity nature arising may be raised directly with the Probity Advisor.
Kevin Williams, OCM
Email [email protected]
Today’s Meeting
The purpose of today’s meeting is to better inform you of the assessment process
To better describe the material required
The objective is to contribute to the quality of detailed submissions
Today is not part of the assessment process
We ask everyone to keep discussions at today’s meeting confidential
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Background
Funding of up to $110 million is available
… only if the applications meet assessment criteria
71 Projects eligible
45 projects shortlisted
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Assessment - Project Criteria
Criteria in the Guidelines are unchanged in the Detailed Application Stage:
1. Strategic Assessment
Country Towns Water Supply and Sewerage Scheme.
Demonstrated Council priorities.
2. Economic Assessment
Spreadsheets: Typical Residential Bill Calculator, CBA Toolkit to calculate the Benefit Cost Ratio and a User Guide have been circulated
3. Affordability
4. Project Delivery
Focus in the Detailed Applications
1. Subsidy Limits
2. Positive economic benefits – benefit-cost ratio (BCR) of at least 1 is required, together with a positive net present value (NPV) - Demonstrates good use of Restart funding and value for money
3. Affordability – all life-cycle costs considered
4. Deliverability - risk assessment and management plans, project plans, procurement plan is sound
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1. Subsidy Limits
Applying the CTWSS rules: ■ Only 1996 Backlog Infrastructure is eligible, including 10% infill and
10% non-residential demand [Note 5 of page 21 of User Guide]
■ Grant funding based on 50% of Capital cost to serve the lower of the 1996 ETs and the Required ET capacity [Item 16 of page 21]
■ Grant funding limited to 50% of $45,000/ET [Note 8 of page 21]
■ For augmentation of existing systems, large LWUs (ie. 2014-15 water & sewerage revenue exceeds $15M) are only eligible for 20% grant funding for the 1996 backlog component [Note 8 of page 21]
2. Positive Net Economic Benefit
Key Inputs to the TRB Calculator:
Required ET capacity [optional – Item 9A on page 21]
Capital cost [optional - Item 11A on page 21]
LWU funds used [optional – reduces the required TRB, Item 12A on page 21]
Key Outputs: ■ Required TRB [Typical Residential Bill $ per ET] [Item 21, page 21]
■ Approx. Government grant and % Subsidy [Items 17, 18 on page 21]
2. Positive Net Economic Benefit
Key Inputs to CBA Toolkit [optional, blue items page 17]: TRB [$ per ET]
Project Capacity [ETs]
Population
% Subsidy
Additional Benefits identified
Key Outputs: ■ Benefit Cost Ratio (BCR) – Total Cost
■ Net Present Value (NPV) – Total Cost
2. Tips for Economic Appraisal A well developed description of project outcomes is required outside
the spreadsheets
As noted on pages 10 to 12 of the User Guide, the LWU may identify additional benefits for:
Productivity Savings, reduced Epidemic Risk, reduced Environmental Damage, Economic Benefits & Social Benefits
Do not double count benefits that have been estimated by the Cost Benefit Analysis Toolkit. Refer to page 10 of User Guide.
Provide a brief statement of how each of the additional benefits was determined with your Detailed Application [page 10 of User Guide].
3. Affordability – Reliable Estimates and Timing Source of the cost estimate is critical
Asset management plans are important
Is the new infrastructure viable in the future – eg. sufficient user income, is it resilient to changes in demand or technology
The ability to meet ongoing operation, maintenance and renewal costs
Provide evidence that your organisation has the ability to fund and operate the asset over its life, including renewal eg. are you achieving full cost recovery for water supply and sewerage infrastructure – refer to Item 2a of your TBL Performance Reports from DPI Water
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Project Delivery Plans
Is the project “investment ready” or “construction ready”?
Delivery approach – innovative, efficient
Do you have all the agreements, land, approvals etc. in place?
Provide detailed Project Delivery Plans – target delivery within 5 to 7 years
Provide detailed Risk Assessment and management plans
More Questions?
DPI Water and INSW will accept questions which must be raised in writing: Please identify questions that you consider unique to your proposal and should remain confidential
Answers to questions will be in writing
Answers (other than confidential project information) will be shared with all applications
Please check that we are using the correct email address
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Confidential Information
All information provided in the application may be distributed to other parties
Identify any information contained in the application which you consider confidential and provide reasons
Any request made under the Government Information (Public Access) Act 2009 for access to an application, including information marked ‘confidential’, will be determined in accordance with the Act
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Process Next steps
Detailed applications close 28 April 2016
Regional Independent Assessment panel undertakes a review of all application material and makes recommendations to Infrastructure NSW
Infrastructure NSW submits its recommendations to the Government
Funding decisions are made by the Government
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Contact Details
Everything must be submitted (cc) to [email protected]
DPI Water contact is Glenn George on 0411 449 745 [email protected]
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