Conclusion on adequacy of the business case

Our conclusion is that the business case is comprehensive and evidence-based11. It transparently analyses the issues and challenges of the project, given its scale and economic importance.

We observed that the business case contains a detailed analysis of costs and risks, and forecasts of expected economic benefits and financial viability of the chosen procurement and operating model for the new convention centre.

The business case substantially conforms with the key elements expressed in current DTF better practice guidance and shows evidence of a defined business need, economic benefit and financial viability for the development.

Detailed consideration was given to the procurement strategy to achieve the project aims and objectives. This material contained in the business case and procurement strategy report was used to inform the project brief and to develop the Expression of Interest (EOI), which is discussed later in this part of the report.

The procurement strategy review is a detailed and focused discussion of the realistic procurement options that could be pursued by the State for the facility, and provides assurance of the viability of the project objectives.

Based on the above observation and analysis, our conclusion is that the business case conforms to relevant government policies and is supported by a rigorous analysis of the PV aspects of the project.

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11  We did not test the accuracy of the economic assumptions or financial variables included in the business case, as it was outside our scope of work for the audit. We did, however, observe DTF and a major advisory firm were directly involved in researching data used to prepare the business case.