Infrastructure Australia launches enhanced Assessment Framework for major infrastructure proposals

Infrastructure Australia has published new guidelines for the development and assessment of major infrastructure proposals.

The 2021 Assessment Framework is a contemporary approach to guide infrastructure decision-making in Australia.

Infrastructure Australia’s Assessment Framework sets out the criteria for assessing proposals for inclusion on the Infrastructure Priority List (Priority List), the national pipeline of investment priorities.

The 2021 edition includes broadened Assessment Criteria to allow for more holistic review of a proposal’s potential benefits, in addition to those that can be monetised through traditional cost–benefit analysis. This enables Infrastructure Australia to better take account of benefits such as sustainability, resilience and quality of life, which are covered in expanded guidance in this edition.

“Infrastructure Australia’s enhanced Assessment Framework responds to community expectations, while still setting clear and transparent expectations on how we will assess major infrastructure proposals,” said Infrastructure Australia Chief Executive, Romilly Madew.

“One of the clear messages we have heard from stakeholders around the country, is that they wanted the Assessment Framework to provide more support for the consideration of broader community benefits that can be delivered through major infrastructure investment.

“Our 2021 Assessment Framework supports the development of high-quality business cases for major infrastructure while also reflecting a clear shift in our approach. In addition to the benefit–cost ratio of a proposal, we are now better positioned to consider broader social and community outcomes alongside traditional economic benefits when advising governments on potential investments.

“In enhancing the Assessment Framework, we have aimed to not only reflect the latest thinking but also improved transparency

and useability. To do this, we have developed an Assessment Framework that provides robust but pragmatic guidance, which aligns to national, state and territory guidelines and supports streamlined project assessment,” Ms Madew said.

Key updates to the Assessment Framework include:

  • New guidance on how to demonstrate strategic merit, quality-of-life impacts, meaningful stakeholder engagement activities, sustainability and resilience.

  • A simpler, four-stage process that aligns with state and territory frameworks.

  • A pragmatic approach for defining a base case.

  • Recommending but not requiring at least two options and a base case in a business case.

  • An updated CBA methodology.

  • Four new technical guidelines to provide greater detail on: risk and uncertainty analysis; program appraisal; multi-criteria analysis and economic appraisal.

Acknowledging submissions may already be in development, Infrastructure Australia has staggered the timing around when proponents are required to follow the new guidelines:

  • Stage 1 submissions are expected to adopt the new guidance immediately.

  • Stage 2 and Stage 3 submissions are expected to align with the new guidance from 1 January 2022.

Further information is available here.

Subscribe to The Local Government Report