Appendix A. Technical guidelines


The table below lists a selection of detailed technical guidelines relevant to the Economic Appraisal of projects. The Project Team may wish to refer to these guidelines to support a robust estimation of project benefits and economic costs for the Economic Appraisal.

Selected technical guidelines

Document

Relevance

CBA methodology guidelines

Infrastructure Australia: Assessment Framework – Guide to economic appraisal, July 2021

Includes substantial detail on Infrastructure Australia’s preferred methodology for Economic Appraisals, including detailed technical notes on:

  • Developing the Base Case and Project Cases for analysis
  • Potential types of benefits and economic costs and approaches to quantification and monetisation
  • The methodology for determining costs including appropriate contingency for project risks
  • Appraisal periods
  • Discount rates.

The paper also discusses the measurement of land use impacts and the estimation of wider economic benefits (WEBs).

New Zealand Transport Agency: Economic Evaluation Manual, 2018

Outlines the concepts underlying Economic Appraisals, and provides detailed guidelines on undertaking the appraisal (particularly for transport investments).

The guidelines also provide suggested parameter values that may be useful when estimating certain benefits, including agglomeration (productivity) benefits.

NSW Government: Guide to Cost-Benefit Analysis, February 2023

Provides information on the features and limitations of a CBA, as well as detail on key components of the analysis including determination of discount rates, dealing with risk and uncertainty in a CBA and the differences between a CBA and financial appraisal.

Victorian Department of Treasury and Finance: Economic Evaluation for Business Cases – Technical Guidelines, August 2013

Provides guidance on the development of an economic evaluation of investment proposals. Includes general information and an overview of the economic evaluation process; as well as detailed information on specific aspects of evaluation such as valuation techniques, valuation of complex benefits, discounting, and shadow prices and market prices.

Notes on Administration: National Partnership Agreement on Land Transport Infrastructure Projects, August 2019

Includes Project Proposal Report (PPR) templates for land transport infrastructure projects, which the Project Team may find useful if the project involves Commonwealth Government funding under the National Partnership Agreement (NPA).

Transport project appraisals

 

Transport for New South Wales: Principles and Guidelines for Economic Appraisal of Transport Investment and Initiatives, March 2016

Provides substantial guidance on the estimation and monetisation of benefits and economic costs relating to transport projects.

Includes a comprehensive catalogue of parameter values and valuation methodologies (Appendix 4), including the value of time for business and private purposes, vehicle operating cost parameters and parameters for congestion, safety and environmental impacts.

Australian Transport Assessment and Planning (ATAP) Guidelines

Includes detailed information on tools, techniques and parameter values for Economic Appraisals relating to transport projects.

Also provides mode-specific guidance (for public transport, road, rail and active travel projects), as well as links to additional technical guidance.

Australian Transport Council: National Guidelines for Transport Systems Management in Australia, 2006

Provides a framework for appraisal of transport investment and initiatives, including detail on techniques for estimating benefits relating to transport investments.

Wider Economic Benefits

 

UK Department for Transport: Transport Analysis Guidance (TAG) Wider Economic Impacts Appraisal, May 2018

Provides detailed information on estimating WEBs, including induced investment, employment effects and productivity/agglomeration impacts.

New Zealand Transport Agency: Wider economic impacts of transport investments in New Zealand, 2011

Includes a literature review of other sources on the estimation of WEBs, as well as a detailed methodology for the estimation of various impacts including imperfect competition, increased competition, labour supply and productivity effects.

Transport for New South Wales: Principles and Guidelines for Economic Appraisal of Transport Investment and Initiatives, March 2016

Appendix 12 includes information on the assessment of WEBs in relation to transport projects.

Australian Transport Assessment and Planning (ATAP) Guidelines

Provides substantial guidance on the estimation of WEBs in appraisal of transport initiatives.

Footnotes: