Building our RegionsRound 5 – Construction Projects

Benefits Assessment Template

This template is to be used by applicants for a project where the total project cost is $500,000 and under.

Contents:

Instructions and guidelines (p2) Benefits Assessment Template (p3–7) Example of Benefits Assessment (p8–13)

Instructions and guidelinesThis Benefits Assessment Template should be used for projects with a total project cost of $500,000 and under. Please use this template to identify and describe all relevant benefits for the local government area that are anticipated to result from the proposed project.

At a minimum, all benefits should be accompanied by an explanation on how these benefits will be achieved, and who will benefit. Where possible, these benefits should be quantified using robust methods.

The types of benefits to be captured include:

Economic benefits for the local government area – the additional economic benefits the project will deliver for local businesses and households

Employment impacts – the expected impact of the project on employment opportunities within the local government area throughout the construction and operational stages of the project

Direct financial benefits to the council – any additional net revenue or net savings that the council may achieve as a result of the project

Other benefits which may be difficult to quantify – benefits of the project which may be significant, but the scale of these benefits is difficult/unable to be measured, including social, environmental and amenity benefits.

The template provides further guidance on each of these identified categories.

The reporting of project benefits should only capture the additional benefit expected as a result of the project going ahead, not the benefit already derived from existing facilities or infrastructure.

Some project benefits may be difficult to quantify. Where this is the case, these benefits should be entered into the template and supported by a detailed description of the benefit.

Note: Quantifiable benefits do not necessarily require benefits to be presented in monetary terms but could be based on some other measurable metric (or both), such as the number of new employees, or increase m2 of industrial land. Applicants are encouraged to provide detailed evidence of any benefits that can be identified to articulate the impact that project investment will deliver.

Applicants need to demonstrate and detail:

an understanding of the economic development opportunities of the project that are specific to the region

a direct linkage between the project and the stated benefits

the methods used to estimate the scale of these benefits

references and documentation of the supporting evidence which may be relevant to the project and the stated benefits.

If you are unsure whether your project should use a Benefits Assessment or Cost Benefit Analysis template, or if you require technical assistance, please contact the BoR helpline on 3452 7377 or buildingourregions@dsdmip.qld.gov.au

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Benefits Assessment Template

Project details

Project name:

Council:

Total project cost: $ Project funding sought: $

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Benefits Assessment Template

Will the project provide economic benefits to the local government area?Consideration should be given to the benefits the project will deliver to local businesses and households within your local government area, such as:

potential increases in tourism visitation, which may lead to additional visitor expenditure within your local government area

facilitating additional economic development or investment opportunities/attraction for local industry

enhancing agricultural land quality or output

improving productivity of local businesses or producers

delivering cost savings for households.

Benefit Description Please identify and describe the economic benefits of the project.

QuantifyCan the additional benefit to the local economy be quantified? If so, please enter the quantity and document the method used to calculate these benefits.

Supporting informationPlease use this space to document any analysis that has been undertaken to support this benefit, and any assumptions that have been made.

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Benefits Assessment Template

What is the impact on employment as a direct result of the project? This includes the employment during construction and any ongoing employment during operation.Please describe and quantify (where possible) the direct employment the project is anticipated to provide. This should include consideration of:

the direct employment supported by the project during construction

the direct employment supported during the operational phase of the project.

Benefit Description Please identify and describe the additional direct employment to the region.

QuantifyPlease document the method used to estimate additional employment. All estimates should be expressed as FTE jobs (the number of hours worked divided by the number of hours in a full time job schedule).

Supporting InformationPlease use this space to document any analysis that has been undertaken to support this benefit, and any assumptions that have been made.

Construction

Operational

Is the project expected to provide additional flow-on employment opportunities for the local government area? Please describe any additional flow-on employment impacts of the project (if appropriate), which may not be captured under the above question. This should include consideration of:

the industry linkages/supply chain within the local government area, and whether the construction activity associated with the project will require additional inputs from local suppliers

whether the ongoing operations of the project will lead to additional economic activity in other local industries, which have the potential to provide additional employment opportunities.

Benefit Description Please describe how the project is expected to result in additional flow-on employment to the region.

Supporting InformationPlease use this space to document any analysis that has been undertaken to support this benefit, and any assumptions that have been made.

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Benefits Assessment Template

Will the project provide a direct net financial benefit to the Council once operational?This could include any additional revenue the council may receive as a result of the project, such as:

Council savings from reduced maintenance and operational costs

additional revenue to the Council through rates/levies/user fees charges, etc.

Please consider any additional operating costs that may be associated with the ongoing operation of the project, and whether the additional revenue is ‘net’ of the additional costs.

Benefit Description Please identify and describe the additional financial benefits or costs to the Council (if applicable).

QuantifyCan the additional net benefits to council be quantified? If so, please document the method used to calculate these benefits.

Supporting InformationPlease use this space to document any analysis that has been undertaken to support this benefit, and any assumptions that have been made.

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Benefits Assessment Template

Will the project deliver other benefits which are difficult to quantify (i.e. environmental/social/amenity benefits)?Please provide a description of any benefits the project may provide which are difficult/unable to be quantified. Consideration may be given to benefits such as:

improved educational opportunities provided to local students and apprentices

improved liveability and community satisfaction

broader environmental benefits

enhanced competitiveness of the regional economy and local businesses.

Benefit Description Please identify and describe how the project is expected to result in additional benefits to the regional economy.

Supporting InformationPlease use this space to document any analysis that has been undertaken to support this benefit, and any assumptions that have been made.

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Benefits Assessment Example

To assist project proponents, the pages below contain an example of a Benefits Assessment undertaken for a hypothetical project. This is intended as an example only and should not be viewed as outlining a comprehensive list of potential benefits.

This Benefits Assessment template should be used for projects with a total project cost of $500,000 and under.

Example scenario

The council currently provides campground facilities at the local lake, which includes a range of cabins, campsites and barbecue facilities. The council has noticed over the past few years that

interest in the campgrounds has experienced a sustained increase, and during peak times, all cabins and campsites have been consistently booked out. As a result, the council is seeking to

expand its campground facilities by providing additional barbecue facilities, powered campsites and a new boat ramp to open up access to the lake for recreational activity.

It is expected the provision of these facilities will enhance the tourism offering provided by the region.

The council has obtained a number of quotes from various local contractors and it is expected that the delivery of this project will cost $375,000. The project is eligible for consideration under

Round 5 of Building our Regions, and as part of the assessment process, is required to complete the Benefits Assessment Template, as the total project cost is less than $500,000.

An example of a completed Benefits Assessment Template is provided below, with council responses detailed in red text.

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Benefits Assessment Template - EXAMPLE

Project details

Project name: Local council – campground expansion and enhancement project

Council: Local Council 1

Total project cost: $375,000 Project funding sought: $180,000

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Benefits Assessment Template - EXAMPLE

Will the project provide economic benefits to the local government area?Consideration should be given to the benefits the project will deliver to local businesses and households within your local government area, such as:

potential increases in tourism visitation, which may lead to additional visitor expenditure within your local government area

facilitating additional economic development or investment opportunities/attraction for local industry

enhancing agricultural land quality or output

improving productivity of local businesses or producers

delivering cost savings for households.

Benefit Description Please identify and describe the economic benefits of the project.

QuantifyCan the additional benefit to the local economy be quantified? If so, please enter the quantity and document the method used to calculate these benefits.

Supporting informationPlease use this space to document any analysis that has been undertaken to support this benefit, and any assumptions that have been made.

Benefits for local economy as a result of additional tourism visitation. The provision of additional campsites as well as the

delivery of a new boat ramp are expected to improve the attractiveness of the lake for recreational activity and result in an increasing number of both overnight and day visitation.

These visitors are expected to result in additional expenditure for local businesses such as cafes and restaurants.

The additional council revenue from overnight visitors to the campsite is captured in the next section

Analysis undertaken by the council (include reference) indicated that opening up the lake to recreational activity could lead to an additional 5,000 visitors per annum.

In addition, data provided by Tourism Research Australia indicates that, on average, day visitors to the region for recreation purposes spent $65 per trip.

Based on the above, the project may result in an additional $325,000 in tourism expenditure each year from day visitors to the region.

Data sourced from Tourism Research Australia (Tourist Expenditure per visitor)

Stakeholder consultation undertaken by the council has identified that the local community is receptive to opening up the lake to further recreational activities through the provision of a boat ramp, and importantly, can be done in a manner that does not compromise environmental sustainability of the ecosystem.

The council’s economic development action plan identified tourism as a potential growth industry and target area. The delivery of the project will encourage additional visitation to the benefit of the regional economy.

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Benefits Assessment Template - EXAMPLE

What is the impact on employment as a direct result of the project? This includes the employment during construction and any ongoing employment during operation.Please describe and quantify (where possible) the direct employment impacts the project is anticipated to provide. This should include consideration of:

the direct employment supported by the project during construction;

the direct employment supported during the operational phase of the project.

Benefit Description Please identify and describe the additional direct employment to the region.

QuantifyPlease document the method used to estimate employment. All estimates should be expressed as FTE jobs (the number of hours worked divided by the number of hours in a full time job schedule).

Supporting InformationPlease use this space to document any analysis that has been undertaken to support this benefit, and any assumptions that have been made.

The project is expected to support short-term employment during the construction of the project for local electricians, carpenters, concreters and landscapers.

In addition, during operation, additional maintenance will be required for the campsite and facilities.

Based on a six month construction period, it has been identified that the project will support 6.5 full-time equivalent local contractors. The council does not have the capacity to deliver the works, so will use local contractors to deliver the project.

The additional maintenance of facilities will be absorbed into the role of the existing rangers’ responsibilities, resulting in no overall increase in the number of FTE’s required.

Yearly inspections of boat ramp facilities will be required, but will be conducted by council engineers, while general maintenance of powered sites will be undertaken as required.

Based on project planning, cost estimates and previous experience, the short-term employment requirements have been estimated to enable the delivery of the project.

Whole-of-life planning for the facilities has identified that the additional cleaning of barbecue facilities, maintenance of boat ramp and campsite facilities will be required.

Is the project expected to provide additional flow-on employment opportunities for the local government area? Please describe any additional flow-on employment impacts of the project (if appropriate), which may not be captured under the above question. This should include consideration of:

the industry linkages/supply chain within the local government area, and whether the construction activity associated with the project will require additional inputs from local suppliers

whether the ongoing operations of the project will lead to additional economic activity in other local industries, which have the potential to provide additional employment opportunities.

Benefit Description Please describe how the project is expected to result in additional flow-on employment to the region.

Supporting InformationPlease use this space to document any analysis that has been undertaken to support this benefit, and any assumptions that have been made.

All materials required for the construction of the project will be sourced from outside the region, so will not require additional inputs from local industry, or support additional short-term employment.

Additional tourism expenditure may support additional employment opportunities for the local economy to service this additional demand.

It has been identified that local industries do not manufacture the materials required as inputs for construction of the project, with all inputs (cement, steel reinforcement, timber, etc) being sourced from outside the regional economy. As such, construction will not result in additional short-term employment outcomes beyond the direct employment of local contractors.

The anticipated additional tourism visitation resulting from the project and resulting tourism expenditure is likely to provide additional employment opportunities within the region.

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Benefits Assessment Template - EXAMPLE

Will the project provide a direct net financial benefit to the Council once operational?This could include any additional revenue the council may receive as a result of the project, such as:

Council savings from reduced maintenance and operational costs

additional revenue to the Council through rates/levies/user fees charges, etc.

Please consider any additional operating costs that may be associated with the ongoing operation of the project, and whether the additional revenue is ‘net’ of the additional costs.

Benefit Description Please identify and describe the additional financial benefits or costs to the Council (if applicable).

QuantifyCan the additional net benefits to council be quantified? If so, please document the method used to calculate these benefits.

Supporting InformationPlease use this space to document any analysis that has been undertaken to support this benefit, and any assumptions that have been made.

The project is expected to enable more visitors to access the campgrounds. This will result in additional revenue to the local council through the provision of additional campsite permits.

There are also additional ongoing costs associated with maintaining the site

It is estimated that the project will result in an additional $33,750 per year in revenue to the council. This estimate has been calculated based on the below approach: An additional 10 powered campsites will be provided as part of the

project; The average cost of a camping permit for the campgrounds is $15 per

night/per person; An average historical occupancy rate of 2.5 people per campsite; and An assumption that the campgrounds will be fully occupied for 90 days

of the year.

The ongoing maintenance costs have been estimated at $15,000 per annum.

The net annual impact to government revenue is therefore estimated at $18,750.

Evidence from previous years suggests that there is sustained demand for the campsite which is currently at capacity during peak periods.

The limited number of sites is limiting the number of tourists which can access the campgrounds, particularly during peak periods.

It is assumed that the additional campsites will be occupied during peak periods. The historical evidence strongly supports this assumption.

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Benefits Assessment Template - EXAMPLE

Will the project deliver other benefits which are difficult to quantify (i.e. environmental/social/amenity benefits)?Please provide a description of any benefits the project may provide which are difficult/unable to be quantified. Consideration may be given to benefits such as:

improved educational opportunities provided to local students and apprentices

improved liveability and community satisfaction

broader environmental benefits

enhanced competitiveness of the regional economy and local businesses.

Benefit Description Please identify and describe how the project is expected to result in additional benefits to the regional economy.

Supporting InformationPlease use this space to document any analysis that has been undertaken to support this benefit, and any assumptions that have been made.

The project will improve the facilities provided at the lake for the local community and visitors. In particular, the delivery of the new boat ramp and barbecue facilities will contribute to improved community satisfaction.

The project will also encourage an active lifestyle for local residents and visitors

It is widely accepted that the provision of community infrastructure is critical to community health, well-being and prosperity. Feedback from the local community on the project indicates that the project will be received well and many have nominated their interest in

making use of the facilities once they are delivered.

Enhancing accessibility to the lake for recreational activities will encourage an active lifestyle which may have flow-on health benefits.

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