The development of the outline business case is a key step in the decision making process and is essential to receiving in-principle funding approval for the project. The purpose of the business case is to provide Cabinet with a comprehensive overview of the project and the rationale for proceeding with the project as a public private partnership.
The detail of the business case will vary according to the type of project. However, as a guide it should as a minimum include:
◼ project structure and objectives and summary of the delivery options considered in the project initiation phase;
◼ outputs to be delivered, in the form of a comprehensive Output Specification;
◼ risk analysis and risk management strategy, including a preliminary risk allocation;
◼ indicative project cost and a preliminary PSC (which is refined into a final PSC prior to the commencement of the tendering process)
◼ government support required;
◼ market appetite;
◼ proposed performance measurement and payment mechanisms;
◼ report on consultation with stakeholders, where appropriate; and
◼ project timetable and resources.