Business Case for the SunShine CoaSt airport Master Plan

DELIVERABILITY ASSESSMENT
time, as the it is unlikely that the runway will be able to generate sufficient
revenue to be commercially viable for the Airport or Private Equity sectors.
· Are they reflected in the project cost estimate?
2.Is there a
need for
government
funding?
Key questions:
· Does a market exist or can a market be introduced, ie, where users pay for
services? – refer section 4.2 PWC Report Appendix B
· Can the private sector partially or fully fund the project in return for revenue
from users or government? –as outlined in the PWC Report Appendix B partial
recovery of costs have been accounted for and a shortfall of $104.3m (page 23)
has been identified. It is demonstrated that the charge required is unable to be
met by users.
· Can the private sector add value by financing and delivering the infrastructure
and related services? The Master Plan has been developed assuming
significant private sector investment in the associated precincts (related
services), while SCA will provide Greenfield sites the building and development
of these sites will rely on private financing.
· If so, is private financing proposed? No private financing for the runway
development has been proposed at this stage. Funding remains an unresolved
risk at this time, as the it is unlikely that the runway will be able to generate
sufficient revenue to be commercially viable for the Airport or Private Equity
sectors
· Where private financing is envisaged, is a competitive market for the provision
of private capital likely given the location and type of project?
· If a mix of private and public financing is proposed, what are the market failures
that require this?
· If public financing is proposed, what are the public policy objectives being
pursued or market failure being addressed?
“Transform our cities: improve the efficiency and sustainability of our cities
by increasing public transport capacity in our cities and making better use of
existing transport infrastructure”.
.
3.Is there a
need for
Commonwealth
funding?
Key questions on the case for Commonwealth Funding:
· Why should the Commonwealth rather than State/Territory or Council fund the
project – what is the national interest? Refer Section 8 Business Case Report
· Is Commonwealth funding likely to lead to a displacement of State/Territory
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