TPAC: Work category 004: Programme business case development

Introduction

This work category A type of activity – not confined to a particular activity class, e.g. new roads (work category 323) appears in:

* activity class 12 – local road improvements
* activity class 13 – state highways improvements provides for the preparation of a Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Case, including supporting evidence collection and model application.

This definition applies to the 2012-15 NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied .  For the 2015-18 NLTP please refer to the updated definition for work category 004.

The NZTA expects that proposals for funding assistance for a Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. 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 The Strategic Context represents the alignment of the proposed investment with the business problem owner’s priorities, regional and national priorities, other programmes and strategies and other organisations’ priorities (if relevant).
  
  It includes:
  the assumptions or view of the future, including transport and population growth, economic and industry change statistics, etc. 
  
  
  * underlying/umbrella strategic documents, such as the Government Policy Statement on Land Transport or regional strategies, to position the outcomes sought within the strategic assessment against wider national and regional outcomes.  A problem with perceived significance may be identified in the strategic assessment but, when placed within a wider strategic context, it is acknowledged that it is not of high significance and does not present value for money Selecting the right things to do, implementing them in the right way, at the right time and for the right price. for investment at this time.
  
  * the proposing organisation’s objectives.
  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 The Strategic Assessment uses robust tools and methodology to determine quickly and at low cost:
  
  
  • what the problem is and whether it has a consequence that needs to be addressed;
  • what outcomes will be gained from any potential investment;
  • what potential benefits will arise from investing, and;
  • whether there is stakeholder agreement to proceed or not to proceed.
  These are most often answered using a Problem and Consequences workshop and a Outcomes and Benefits workshop.
  of the problem or opportunity
• strategic context The Strategic Context represents the alignment of the proposed investment with the business problem owner’s priorities, regional and national priorities, other programmes and strategies and other organisations’ priorities (if relevant).
  
  It includes:
  the assumptions or view of the future, including transport and population growth, economic and industry change statistics, etc. 
  
  
  * underlying/umbrella strategic documents, such as the Government Policy Statement on Land Transport or regional strategies, to position the outcomes sought within the strategic assessment against wider national and regional outcomes.  A problem with perceived significance may be identified in the strategic assessment but, when placed within a wider strategic context, it is acknowledged that it is not of high significance and does not present value for money Selecting the right things to do, implementing them in the right way, at the right time and for the right price. for investment at this time.
  
  * the proposing organisation’s objectives.
  
• 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 Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. 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 a model 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 NZTA for eligibility. 

Expected outputs Goods or services delivered by an activity or combination of activities. from a Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. 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 Selecting the right things to do, implementing them in the right way, at the right time and for the right price. . 

The programme business case will:

• confirm the strategic case Is the proposal aligned with the organisation’s strategic context and plans?  The strategic case determines whether or not an investment is needed. It demonstrates the case for change and the strategic assessment of evidence, i.e. how the proposal will further the aims and objectives of the organisation.  ;
• develop a list of strategic alternatives A strategic option that may encompass a mix of modes and/or high level routes and/or land use options. Alternatives would be considered during strategy development, with the preferred alternative being selected and taken through into package and project development. 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 Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Case must also enable the NZTA (planning and investment) to make a preliminary assessment of:

• the  assessment profile The three-part rating for an activity, rated as high, medium or low e.g. HMM, and representing the assessment for Strategic Fit, Effectiveness, and Benefit and Cost Appraisal respectively. , 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 Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Case.

Exclusions

This work category A type of activity – not confined to a particular activity class, e.g. new roads (work category 323) appears in:

* activity class 12 – local road improvements
* activity class 13 – state highways improvements excludes:

• the costs associated with development of a strategy/ activity strategic case Is the proposal aligned with the organisation’s strategic context and plans?  The strategic case determines whether or not an investment is needed. It demonstrates the case for change and the strategic assessment of evidence, i.e. how the proposal will further the aims and objectives of the organisation.  , - these are not eligible for funding from the NLTF The fund established under section 10 of the LTMA
• development or upgrading of transport models – these are funded under Work Category 002: Transport model development
• preparation or improvement of Activity Management Plans Plans describe the tactics to give effect to a strategy. They are specific in content, action oriented and outputs focussed, resulting in a tangible set of activities to be delivered within a clear timeframe. , Procurement The purchase of works, goods or services. Strategies, Road Safety Action Plans Plans describe the tactics to give effect to a strategy. They are specific in content, action oriented and outputs focussed, resulting in a tangible set of activities to be delivered within a clear timeframe. 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 rate

The usual funding assistance rate for qualifying work under this work category A type of activity – not confined to a particular activity class, e.g. new roads (work category 323) appears in:

* activity class 12 – local road improvements
* activity class 13 – state highways improvements is:

• the Approved Organisation’s construction rate
• the weighted average regional construction rate for regional councils
• 100% where the expenditure is incurred by the NZTA.

Change management

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

The NZTA will check the coverage and outputs Goods or services delivered by an activity or combination of activities.   of business cases against their strategic assessments.

Transport Investment Online (TIO The NZTA's web-based funding allocation system. ) will automatically carryover the unspent allocation every year.  Therefore it is vital that Approved Organisations and the NZTA (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 Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. Business Case

At the conclusion of the programme business case development Approved Organisations and the NZTA should seek support of the completed Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. 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.