[PROJECT NAME]

SSWP reference no. SSWPXXX

SSWP Project plan/Business case

[PROPONENT]

[INSERT VERSION]

[INSERT DATE]

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SAFE AND SECURE WATER PROGRAM

PROJECT INFORMATIONProject name SSWPXXX -

Lead proponent (e.g. council)

Lead proponent ABN

Project partners

LEAD CONTACT

Name

Position

Phone

Email

Fax

Address

PROJECT SCOPE

Project summary for publicationProvide 150 words or less

PROJECT LOCATION

Project address

Local government area

NSW electorate

Federal electorate

Coordinates (lat / long)*

SUPPORTING INFORMATION

AttachmentsList out all supporting information provided

* to get project lat / long use google maps, right click location and when pop up appears click “what’s here” to display lat / long for copying from side panel.

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DOCUMENT INFORMATIONDocument summary information

Version

Version release date

Document security

Document history

Version Amendment Amendment date Amended by

Context for this template document

The Safe and Secure Water Program (SSWP) has transitioned from an applicant-led process to one in which the NSW Government has identified the priorities and projects that will be eligible for funding. The transition means that some of the supporting materials previously required in the first stage of the SSWP – such as demonstrating a benefit to cost ratio greater than one – no longer apply and there is an opportunity to streamline the application process.

The Department of Planning, Industry and Environment still requires a document that demonstrates due diligence by council in project scoping, planning, resourcing and governance: This proposed project plan/business case template:

● summarises the project and background and provides the key project milestones

● recognises the key milestones of the departmental approvals needed under s60 of the Local Government Act 1993

● demonstrates adequate stakeholder engagement and support

● demonstrates capacity and governance systems are in place to deliver the project within scope, specification and budget

● forecasts likely expenditure in a way that is suitable for incorporation in the funding deeds

● confirms council’s commitment to the project and acceptance of ongoing ownership obligations of any new assets arising.

Council also needs, as a minimum, a simplified version of the business case for its own reasons. New water and sewerage infrastructure (especially treatment plants) are among the largest capital projects undertaken by councils and can pose a significant financial and management risk to councils. Preparing a business case or project plan, such as the one outlined in this template, will provide the following benefits:

● The plan documents the reasons for needing to expend council funds on a solution (environmental, public health, economic development, etc.) for endorsement by the elected council.

● The plan demonstrates that the proposal is consistent with strategic planning processes, in particular the Integrated Planning and Reporting framework mandated for NSW councils. (ss. 402 to 406 of the Local Government Act).

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● Councils can ensure elements of the Integrated Planning and Reporting framework are specifically addressed. This includes: alignment with the aspirations of the community in the community strategic plan; identification of need in the asset management plan; demonstrating that council can afford to undertake the works through scenario modelling in the long-term financial plan (which should also include impact on typical residential bills).

● Councils can demonstrate (to itself and the community) that the project or solution is consistent with its four-year delivery program (or identify that the delivery program will be amended).

● A version of the business case/project plan can help satisfy audit and risk management requirements under s. 428 of the Local Government Act and for the NSW Audit Office.

Use of this template is not mandatory. Councils can submit documentation in an alternative form, as long as it satisfies the above principles.

However, for projects with a total capital investment above $10 million (excluding GST), we recommend councils use the NSW Treasury ‘Detailed business case template’ available for download from www.treasury.nsw.gov.au/index.php/information-public-entities/business-cases, or an equivalent document.

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CONTENTS1 EXECUTIVE SUMMARY........................................................................................................62 CASE FOR CHANGE............................................................................................................6

2.1 BACKGROUND...............................................................................................................6

2.2 EXPECTED OUTCOMES...............................................................................................7

2.3 PROJECT TIMING..........................................................................................................7

2.4 STAKEHOLDER AND COMMUNITY SUPPORT...........................................................8

3 ANALYSIS OF THE PROJECT.............................................................................................93.1 INFORMATION ABOUT THE PROJECT........................................................................9

3.2 OTHER OPTIONS CONSIDERED.................................................................................9

3.3 PROJECTED COSTS...................................................................................................10

3.3.1 PROJECTED CAPITAL COSTS............................................................................10

3.3.2 PROJECTED ONGOING COSTS.........................................................................11

3.4 FINANCIAL APPRAISAL..............................................................................................11

3.5 PROPOSED FUNDING ARRANGEMENTS.................................................................12

4 PROGRAM AND MILESTONES.........................................................................................135 GOVERNANCE....................................................................................................................15

5.1 ORGANISATIONAL STRUCTURE...............................................................................15

5.2 KEY RISKS...................................................................................................................16

5.3 LEGISLATIVE, REGULATORY ISSUES & APPROVALS............................................16

5.4 PROJECT MANAGEMENT SUPPORTING DOCUMENTS..........................................17

6 APPENDICES......................................................................................................................18

HOW TO USE THIS PROJECT PLAN TEMPLATEThis template provides instructions in italics and in colour to help applicants prepare their project plan. Please delete all instructions from the final project plan to improve readability.

Instructions in red italics are considered essential in the project plan to satisfy the information needs of both Department of Planning, Industry and Environment and council in meeting its capital investment assurance requirements.

Instructions in light blue italics are recommendations to councils to address some of the anticipated information needs of interested residents, the council and key committees (e.g. audit and risk). Council should incorporate or align information in this project plan with existing internal templates or procedures wherever possible, e.g. use the council standards for governance and reporting, procurement risk assessment and financial assessments such as scenario modelling of council’s long term financial plans.

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1 EXECUTIVE SUMMARY● Summary of key information relating to the project

2 CASE FOR CHANGE2.1 BACKGROUNDThis section provides information to improve the readers’ understanding of the project. The target audience are the councillors, interested community members, council’s internal audit and risk committee (mandatory from 2021), and Department of Planning, Industry and Environment (to assist with development of funding deeds and s. 60 approvals processes).

Types of information that are relevant to this section include:

● the issues that need to be addressed and why they are a high priority for council (including references to previous studies, the integrated water cycle management strategy and the community strategic plan)

● a short description of the preferred solution that addresses the issue (noting that a more detailed project description is included in Section 3 of this project plan).

For projects prioritised for funding under the Safe and Secure Water Program, the rationale is consistent and should be included in the background section with text similar to the following:

NSW Government and XY Council have agreed that the water quality/water security/environment risk/issue at XZ location or facility represents a high risk that requires urgent resolution. They have agreed to co-fund resolution of this issue in the most cost-effective manner based on whole-of-life costs.

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2.2 EXPECTED OUTCOMESOutline the expected outcomes arising from the project.

Beneficiaries may be council, users/recipients, the community, the environment, businesses and other organisations.

Outcomes should be outlined in quantitative terms where possible. Outcomes may be described in qualitative terms if quantification is difficult. A table capturing the objectives and outcomes (success indicators) will assist readers, and the objectives and KPI’s developed may be useful in preparing a tender documentation.

Table 2.1: Issues, objectives and key success Indicators

Key Issues Key Project Objectives Key Success Indictors

2.3 PROJECT TIMING Identify the key factors driving the proposed project timeline.

The project may address risks to public or environmental health that may be triggered by certain events or gradual changes in demands. Allow reasonable timeframes to enable sound project investigation, environmental assessment, planning approvals and investment decisions.

Other factors related to timing could include the availability of external funding, the lack of internal funding before a certain date or the need for lengthy approval processes such as an EIS up front before the project can be prepared for market. Opportunities, such as options to share resources, or undertake related projects at the same time, should also be identified.

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2.4 STAKEHOLDER AND COMMUNITY SUPPORTOutline the level of stakeholder and community engagement and support for the project.

What issues and concerns have stakeholders/the community raised? How has the project responded to these concerns?

Has community concern over the risk/issue been documented in prior studies such as the integrated water cycle management strategy?

Has there been any negative response to the proposed solution? If so, acknowledge this and explain how the concerns have been considered or addressed.

For projects that are complex and/or involve multiple stakeholders, the development of a stakeholder and communications plan is recommended. This plan should outline:

● key stakeholders

● key issues/concerns

● how the project has adapted to these issues/concerns

● consultation activities undertaken

● future communications activities proposed.

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3 ANALYSIS OF THE PROJECT3.1 INFORMATION ABOUT THE PROJECT Provide a description of the works proposed.

This description may include:

● location of the project

● quantifiable details including area/length, capacity, etc.

● relevant design standards

● outcomes of environmental assessment/REF

● utility service adjustments or property acquisitions

● concept diagrams and sketches

● photos

● asset decommissioning/disposals arising from this project

● relationship with any other proposed or recently completed projects.

List previous studies and supporting documentation that helped to determine the preferred solution or describe the scope of works in more detail.

The key options and concept studies should be included as appendices.

3.2 OTHER OPTIONS CONSIDEREDSummarise how the preferred solution was selected.

What alternative options were considered that would also solve the issues?

Alternative options that proponents may need to consider include:

● a ‘do-nothing new’ (business as usual) option

● a ‘do-minimum’ option

● other potentially viable solutions that were considered in some detail, and the reasons why these were not preferred

● any potential for temporary works or staging the solution.Page 9 of 19

Typically several options would have already been compared in a multi-criteria analysis in either the options/concept study and/or council’s integrated water cycle management strategy. This would include financial analysis such as a net present value assessment to compare whole-of-life costs of the various options.

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3.3 PROJECTED COSTS3.3.1 PROJECTED CAPITAL COSTS

Summarise the projected capital cost of the project.

Cost estimates should include:

● base costs for the whole project and for individual elements or phases of the project

● contractor margins

● project management margins

● contingency.

Present capital costs:

● without escalation to inform any cost benefit assessment

● with escalation (i.e. with inflation) to inform funding and affordability assessment.

The assumed inflation rate and its basis should be reported. All cost estimates should be exclusive of GST.

Explain how the cost estimates were derived and enclose a cost plan, quotes or budget estimates prepared by persons with suitable expertise in similar projects.

Forecast capital expenditure projections are to be provided in a format similar to the table below, or as used by council in its delivery program.

The table will be used to assist council and state budgeting processes for large projects.

Table 3.1: Projected capital costs inclusive of contingency ($000s)

Stage 2019-20 2020-21 2021-22 2022-23 Future Years Total

Project A

Component 1

Component 2

Component 3

Project Management (5 to 10%)

Base Cost Estimate

Contingency (Y%)

Escalation (Z%)

Nominal cost

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3.3.2 PROJECTED ONGOING COSTS

Outline the ongoing costs that would arise with the project. These costs may include operating, maintenance, repair, renewal and replacement costs. These costs should be estimates for all financial years until the project reaches a steady state. Also outline council’s capacity to provide adequately trained personnel to operate and maintain the facility on an ongoing basis (you may refer to council’s workforce management strategy under IP&R).

Note: The Safe and Secure Water Program does not fund ongoing costs.

In some instances, cost savings and revenues may be realised (such as where old assets are being decommissioned/sold as part of the project). These cashflows should be identified separately.

Table 3.2: Projected ongoing costs ($000s)

Year 2019–20

2020–21

2021–22

2022–23 ….

Steady state/last year

Total

Item 1

Item 2

Item 3

Item 4

Item 5

Item n

3.4 FINANCIAL APPRAISALOutline the budget impact of the project from the council/LWU perspective. In particular, the impact of the project on council’s long-term financial plan, key financial performance measures and ratios, and the typical residential bills for water and sewerage must be documented.

LWUs must confirm that their financial plan will incorporate the capital and ongoing financial commitments required to deliver the project and that they have assessed the impact on typical residential bills and found these to be sustainable.

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3.5 PROPOSED FUNDING ARRANGEMENTSOutline how the project’s capital costs are to be funded.

Provide a breakdown by financial year if these costs will span multiple financial years.

Ensure that total funding covers total capital costs outlined in Section 3.3.1.

Table 3.3: Proposed capital funding contributions ($000s)

Year 2019–20

2020–21

2021–22

2022-23 …. Total

Project capital costs

NSW Government (SSWP or other program)

Council contributions (s64)

Council contributions (Loans)

Council contributions (SRV or special rate)

Council contributions (Other)

Industry contributions

Other government contributions

Other funding sources (please detail)

Sub-total

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4 PROGRAM AND MILESTONESOutline the key events and decision points associated with the project. This section will be used by the department to assist with the drafting of funding deeds. It is essential that council incorporate the steps involved in obtained s. 60 approvals under the Local Government Act.

Section 60 endorsement from the department is required at options assessment and concept design phase for treatment plants, recycling and dam works. Section 60 approval is issued following detailed design.

Key events to consider for incorporation into the program:

● review period

● planning and detailed design

● procurement

● development/construction

● commissioning.

Recommended attachment: a program timeline/Gantt chart

Table 4.1: Project program (example only)

Event Start Finish

Funding deed and council approvals

Engage project manager

Environmental impact assessment/review of environmental factors

Options study s. 60 endorsement (treatment plants/recycling/dams)

Concept design s. 60 endorsement (treatment plants/recycling/dams)

Develop tender documents, call for tenders

Review and award tender

Environmental, planning and development approvals obtained

Development of management plans (by contractor)

Detailed design

Detailed design s. 60 approval (treatment plants/recycling/dams)

Preliminary works

Construction

25% completion

50% completion

75% completion

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Commissioning

Training/handover to council/defects liability

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5 GOVERNANCE5.1 ORGANISATIONAL STRUCTUREPresent a project organisational structure with personnel identified. Outline the team members’ roles and responsibilities for the successful delivery of the project and on-going operations. Department of Planning, Industry and Environment regional engineers may be available to participate in steering committees for particularly large or complex projects.

Outline the way the project will be organised, including:

● key decision-makers (e.g. project sponsor, councillors)

● governance bodies (e.g. steering committees, advisory groups)

● project personnel

● key stakeholders (e.g. stakeholder groups, liaison/communications officers)

● interfaces with government agencies (e.g. DPC, Treasury, INSW, etc.)

● interfaces with contractors

● if the proponent is more than one entity, interactions between the lead contact and each entity.

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5.2 KEY RISKS Outline the key risks that the project will face, proposed mitigations and how serious each risk is. Undertake a formal risk assessment in accordance with council’s risk management processes and present a table identifying risks, proposed mitigations, and residual risk ratings.

Procedures and processes for determining and managing risks (by council/LWU or contractor) should be identified.

Key risk areas to consider include:

● scope

● construction

● financing

● planning and approvals

● legal

● property acquisitions

● utility relocation

● procurement

● sustainability.

● stakeholder management

● safety.

5.3 LEGISLATIVE, REGULATORY ISSUES & APPROVALSOutline any legislative/regulatory issues that the project needs to adhere to/manage/resolve, as well as the required approvals.

For treatment plants and recycled water schemes, the proponent must address s. 60 approvals under the Local Government Act. The regulatory process is outlined at: industry.nsw.gov.au/water/water-utilities/regulatory-assessments (Section 292 under the Water Management Act for SOCs)

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5.4 PROJECT MANAGEMENT SUPPORTING DOCUMENTSCapture the various management plans that will be needed to successfully deliver the project. Identify if they are already in place or under development, and the entity that has the primary responsibility to prepare and administer the plans.

Note that some of these plans may be delegated to the main contractor by inclusion in the tender documentation. Resource management plans should identify what roles the proponent will resource internally and which are proposed to be outsourced.

Note that the department may request copies of management plans during the course of the project.

Table 5.1: Supporting management plans (example only)

Management plan Responsibility Current status Comments

Complete Under development

Procurement plan Council Yes

Resource management plan Council Yes

Communications plan Council Yes

Project governance plan Council Yes

Safety management plan Contractor Not yet

Environmental management plan

Contractor Not yet

Risk management plan Council/ Contractor

Yes

Other plans

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6 APPENDICESAppendices may include:

● relevant prior feasibility and options reports

● relevant links to other council documents, particularly IWCM

● previous outcomes of community consultation relevant to the project.

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