BBRF Round 5 Cost Benefit Analysis
Shire of Meekatharra | 2020
Services
- Business Case
- Cost Benefit Analysis
- Employment Impact Assessment
- Social and Economic Benefit Assessment
Scope
Pracsys was engaged by the Shire of Meekatharra to prepare a Cost-Benefit Analysis (CBA) to assist the Shire’s application for funding under the Building Better Regions Fund (BBRF). The Shire was requesting funding for the development of a community plaza along Great Northern Highway.
Approach
Potential economic and social benefits were identified based on the project’s deliverables. The identified impacts were the monetised over a 20-year period using the ‘benefit transfer’ method – drawing values from high quality studies and applying them to the context in question. Through present value analysis, the Project’s Benefit Cost Ratio (BCR) and Net Present Value (NPV) were calculated to identify the Project’s value for money.
Outcome
The Project was determined to have a BCR of 2.7, with a NPV of $5 million. This resulted in a successful funding application under the BBRF.
