Indicative Asset Betas and Project Risk Premia

Risk band

Project sectors and example projects

Asset beta

Real risk premium

Very low

Accommodation and related services
Aged care housing
Public housing
Hospital facilities
Correctional facilities


0.3


1.8

Low

Water, transport and energy
Wastewater treatment plants Water infrastructure
Hospital car parking
Hospital energy plants
Road projects (non-toll)


0.5


3.0

Medium

Telecommunications, media and technology
Entertainment Telecommunications and IT Knowledge economy


0.9


5.4

Source: National Public Private Partnership Guidelines - Volume 5: Discount Rate Methodology Guidance