| • Evaluate benefits, risks and costs of preferred option against other options, incl. status quo • Evaluate procurement options • Obtain in-principle funding and project approval • Begin development of PSC |
The main functions of the stage 1 business case are to:
• establish the service need
• determine the scope of the preferred option
• analyse the costs and benefits of that option and demonstrate that it has a net benefit, both against other options and against a do-nothing or do-minimum option
• confirm the contribution of the project to government policy objectives
• examine the financial impacts and risks of the project to government
• examine funding sources
• analyse procurement options, and
• elicit a decision from the government whether the project should proceed or not and obtain a budget allocation subject to a final approval following presentation of the stage 2 business case (see below).
The rest of this guide proceeds on the assumption that the analysis of the advantages and disadvantages of different procurement methods (see previous section), when applied to a particular project, favoured procurement by way of a PPP.
The following are some of the issues that need to be considered: