Once an agency has identified and broadly scoped the service requirements, the available options should be broadly evaluated. Agencies should consider innovative options when formulating technical solutions to address service requirements. At this stage, all realistic options should be evaluated. These options include,
• Existing asset options: Consider whether existing government or private sector infrastructure may be used. Recycling infrastructure may involve upgrading, refurbishment or reconfiguration of assets and co-location/shared facilities.
For example, population growth may result in an existing modular sewage treatment plant being near capacity. Rather than expanding the plant by constructing an additional module, it may be more cost-effective to divert supplies to existing underutilised plants.
• New asset-based options: Consider whether new infrastructure is required.
For example, an analysis of the changing demographics of a region indicates that the current number of hospital beds will not meet anticipated demand in two years. If a cost/benefit analysis of all options demonstrates that a new hospital is the lowest cost solution to meeting demand in the medium term, then construction of the new hospital is justified.
• Non-asset options: Consider whether service requirements can be met through demand management practices or the implementation of changes to existing service delivery models.
For example, an increase in demand may indicate that the expansion of an existing water treatment plant is necessary. However, the introduction of various demand management practices, such as price increases and rationing supplies, could delay or eliminate the need for new infrastructure.
Technical solutions should, where appropriate, take into account the disposal of existing assets. When a number of location and site alternatives are available, it will be necessary to include these in the analysis.
Where an agency decides to proceed with an asset-based option, it will include this requirement in its capital investment strategic plan. Note that agency capital investment strategic plans are prepared on the basis of existing agency forward estimates and there may be instances where an agency has identified an asset option that is unfunded.