Ensure projects are investment-worthy

Many stakeholders, including the Productivity Commission, have called for significant improvements to how projects and investments are assessed and developed. They cite the clear link between poor value for money and inadequate project selection.119

To avoid poor performance, infrastructure projects should be assessed as investment-worthy before they are considered shovel-ready, as measured against a long-term view of the desired investment outcomes.

To achieve this, investment decisions should be progressed sequentially and be continuously refined. Each refinement has the potential to unlock significant economic and productivity gains for the proposed projects.120

Figure 3.6 highlights the key decision-making steps to ensure a project is investment-worthy before substantial public funds are committed.

Figure 3.6: Sequential decision-making will ensure a project is investment worthy