Cabinet Approval for the Investment Decision

The procuring agency must identify public infrastructure needs to achieve its service delivery objectives. The public infrastructure project should then be developed (based on a business case2) in line with the Total Asset Management (TAM) Framework3, prior to obtaining Cabinet approval.

The Cabinet Infrastructure Committee (CIC) considers infrastructure investment proposals based on agencies' detailed business cases for major projects (those beyond a $100 million and those elected as significant by the Premier).  The CIC takes into account the priority of other projects and consistency with the State Infrastructure Strategy and Infrastructure Plans.

Capital and recurrent funding for the project needs to be approved by the Expenditure Review Committee (ERC) of Cabinet, prior to an agency approaching the market. ERC's funding approval decision takes into account the CICs decisions on the relative need for the project.

___________________________________________________________________________________

2 Business cases must be prepared in accordance with Treasury Policy and Guidelines Paper TPP08-5 Guidelines for Capital Business Cases.

3 More details on the Government's Total Asset Management Policy and Guidelines are available at Treasury's Website: www.treasury.nsw.gov.au. Whilst SOCs are not bound by TAM policy, their assets strategies should as far as practicable be consistent with the principles of TAM.