Work category 004: Programme business case development

Introduction

This work category provides for the preparation of a Programme Business Case, including supporting evidence collection and model application.

The Transport Agency expects that proposals for funding assistance for a Programme Business Case will be justified using a fit for purpose Strategy Strategic Case which:

• outlines the case for change and the need for the potential investment
• identifies the strategic context and fit of the proposed investment
• provides stakeholders with a high degree of confidence that the investment aligns with strategic priorities.

The Strategy Strategic Case should include:

• strategic assessment of the problem or opportunity
• strategic context
• an outline of the work required to complete a programme business case
• funding application to proceed

Information on the business case approach to activity development is found within the Planning and Programme Development section. 

Examples of qualifying activities

Examples of qualifying activities include, but may not be limited to:

• evidence collection required to inform specific components of the programme business case
• application of modelling, e.g. through use of a transport model or network operating plan, to test assumptions within the business case, or forecast demand
• development of regional, inter-regional or sub-regional programme business case

Other potential activities that are not in the above list should be discussed with Transport Agency for eligibility. 

Expected outputs from a Programme Business Case

The primary purpose of the programme business case is to provide robust evidence for a decision to invest in a programme of works that will deliver optimal value for money. 

The programme business case will:

• confirm the strategic case;
• develop a list of strategic alternatives and options;
• identify a long list of possible programmes;
• identify a preferred programme of activities to progress to the indicative business case stage; and
• provide a cohesive long term vision (10 – 50 years)

The Programme Business Case must also enable the Transport Agency (planning and investment) to make a preliminary assessment of:

• the  assessment profile, including indicative economic efficiency range
• timing of the interventions; and
• affordability

The Investment Decision Checklist should be used by the business problem owner to test the robustness of the prepared business case.

The information guide will help business problem owners to develop a Programme Business Case.

Exclusions

This work category excludes:

• the costs associated with development of a strategy/ activity strategic case, - these are not eligible for funding from the NLTF
• development or upgrading of transport models – these are funded under Work Category 002: Transport model development
• preparation or improvement of Activity Management Plans, Procurement Strategies, Road Safety Action Plans or Regional Public Transport Plans – these are funded under Work Category 003: Activity management planning
• studies which do not contribute to the objectives of the approved programme business case
• detailed option selection or any component that is a part of investigating an activity – these are part of the cost of the indicative or detailed business case,
• Regional land transport planning preparation and management, which should be funded from Work category 001: Regional Land Transport Planning Management

Funding assistance rates

The usual funding assistance rate is:

• the Approved Organisation's normal FAR,
• the Approved Organisation's special purpose roads improvements FAR, or
• 100% of the Transport Agency state highway costs

Change management

Any change of scope of an approved programme business case must be approved by the Transport Agency before proceeding with the business case development.

The Transport Agency will check the coverage and outputs  of business cases against their strategic assessments.

Transport Investment Online (TIO) will automatically carryover the unspent allocation every year.  Therefore it is vital that Approved Organisations and the Transport Agency (State Highways) declare the unused allocation for completed projects by making a cost-scope adjustment via the Reviews module in TIO.

Seek support for Programme Business Case

At the conclusion of the programme business case development Approved Organisations and the Transport Agency should seek support of the completed Programme Business Case to achieve:

• acceptance of the scale of the problem and the need to address it
• an indication of the robustness of the developed business case and alignment to the current assessment framework
• a reasonable degree of certainty to seek investment to further develop the activities further through the business case process.