SP AusNet Capex – Approval Process. Deferred and cancelled projects Significant variation in costs Delivery of Project Project subject to economic/engineering.

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Presentation transcript:

SP AusNet Capex – Approval Process

Deferred and cancelled projects Significant variation in costs Delivery of Project Project subject to economic/engineering analysis to justify proceeding, deferral or cancellation Unforecast ProjectsForecast Projects Need for Investment AtoP VariationEngineering StudyAtoPPost Implementation Review OARs Efficiency of Delivery Efficiency of Solution Project Assessment Process

Major report for large projects such as station rebuilds Working papers are combined in AtoP for more minor work Analysis may be for program of work rather than specific projects within the plan Contains the economic cost/benefit analysis of all technically feasible options Always considers the “do nothing” option. Both internally and externally generated reports are used Economic/Engineering Analysis

Provides summary of economic/engineering analysis and a risk analysis (ie Implementation risks) Includes business case and sets internal budget May function as the economic/engineering analysis itself for minor projects Variation needed if AtoP budget is to be exceeded after the project is underway Variation must include explanation of cost increase and new economic/engineering analysis if required Authority to Proceed (AtoP)

Order Approval Request (OAR) Covers analysis of all tenderers and evaluation criteria. Approval level is same as AtoP Waiver of competition requires higher level of approval Waiver of competition, where relevant, with explanation

Major projects subject to external PIR Explains cost over-runs, lessons learned and recommended improvements to processes Part of the feedback loop in the AM Process Post Implementation Review (PIR)