SP AusNet Capex Approval Process

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SP AusNetCapex Approval Process
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Project Assessment Process
Unforecast Projects
Forecast Projects
Need for Investment
Project subject to economic/engineering analysis
to justify proceeding, deferral or cancellation
Efficiency of Solution
Deferred and cancelled projects
Significant variation in costs
Delivery of Project
Efficiency of Delivery
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Economic/Engineering Analysis

• Major report for large projects such as station
  rebuilds
• Working papers are combined in AtoP for more
  minor work
• Analysis may be for program of work rather than
  specific projects within the plan
• Contains the economic cost/benefit analysis of
  all technically feasible options
• Always considers the do nothing option.
• Both internally and externally generated reports
  are used

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Authority to Proceed (AtoP)

• Provides summary of economic/engineering analysis
  and a risk analysis (ie Implementation risks)
• Includes business case and sets internal budget
• May function as the economic/engineering analysis
  itself for minor projects
• Variation needed if AtoP budget is to be exceeded
  after the project is underway
• Variation must include explanation of cost
  increase and new economic/engineering analysis if
  required

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Order Approval Request (OAR)

• Covers analysis of all tenderers and evaluation
  criteria.
• Approval level is same as AtoP
• Waiver of competition requires higher level of
  approval
• Waiver of competition, where relevant, with
  explanation

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Post Implementation Review (PIR)

• Major projects subject to external PIR
• Explains cost over-runs, lessons learned and
  recommended improvements to processes
• Part of the feedback loop in the AM Process