14 May Successful ‘Resources for Regions’ Funding for Singleton Council
Singleton Council has been successful in their application for funding for two projects from the NSW Government’s Resources for Regions initiative. The projects are the Singleton Livestock Markets ($6 million) and Ryan Avenue upgrades ($2.9 million) with Council being allocated a total $8.9 million from the Resources for Regions funding program, announced in March 2014.
Funding from Resources for Regions is a Restart NSW Fund Program, for infrastructure for mining affected communities. Restart NSW is the NSW Government’s fund established to improve economic growth and productivity in the Sate by funding major infrastructure projects.
The objective of the Resources for Regions program is to relieve infrastructure constraints and reinvest in regional communities affected by mining, projects must improve local economic and social infrastructure.
The successful funding has made the local news:
http://www.singletonargus.com.au/story/2155336/cash-rolls-in/?cs=12
http://www.singletonargus.com.au/story/2155336/cash-rolls-in/?cs=12
“Singleton Council general manager Lindy Hyam and Mayor John Martin were delighted with the news which they said was reward for more than two years of project planning”.
“The application process requires considerable work, it requires a full benefit cost analysis based on treasury guidelines, it is considerable work that must be done well in advance,” Ms Hyam said.
Working with Morrison Low, REMPLAN was applied to determine the Cost Benefit Assessment component of Singleton Council’s two successful projects for the Resources for Regions funding application. The Cost Benefit Assessment was required to meet specific guidelines based on Treasury requirements when applying for federal funding.
Requirements for the economic benefits of the project (benefit-cost-ratio) for the region and NSW economy included:
- The Construction phase:
- direct output was assessed as a cost under the NSW Government Guidelines for the Cost Benefit Ration calculation.
- direct output and annual maintenance costs expressed in Net Present Value (NPV) terms applying a 7% discount rate with sensitivity testing at 4% and 10%.
- Operational phase:
- annualised benefits in terms of avoided costs, savings, new revenues and increased productivity as a result of the project,
- direct annual output generated over the lifetime of the respective infrastructure to be expressed in NPV terms applying a 7% discount rate with sensitivity testing at 4% and 10%.
- Estimate the cost benefit ratio as per NSW Government guidelines
- Model the flow-on benefits (multipliers effects) of the construction and operational phase of the projects in terms of output, jobs, wages and salaries and value-added for Singleton and NSW, to assess the wider economic benefits.
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