This section provides guidance for assessing public transport improvement activities over $300,000 implementation cost per activity that target a specific increase in levels of service in part of a public transport network.
The improvements activities within the public transport activity class incorporate the following work categories:
Further information on public transport improvements is provided in the Public Transport Improvements section.
Default strategic fit
By default, the strategic fit rating for public transport improvements is low.
Requirements for medium rating
A medium strategic fit rating may be given if, in the short to medium term, the problem, issue or opportunity is:
Requirements for high rating
A public transport improvements activity must only be given a high strategic fit rating if, in addition to meeting the criteria for a medium rating, in the short to medium term, the problem, issue or opportunity is:
Further information
Further information on Strategic Fit assessment is provided in the guidance on Developing an Assessment Profile.
Criteria for effectiveness
All six criteria set out below are to be assessed for any programme or activity proposed for NLTP inclusion or funding approval. The explanations are a guide to assessment, highlighting aspects that need to be considered. If any of these aspects is not applicable to the activity then it should not form part of the assessment.
| Criteria | Explanation | Rating |
| Outcomes focused |
|
L/M/H |
| Integrated |
|
L/M/H |
|
Correctly scoped |
|
L/M/H |
|
Affordable |
|
L/M/H |
|
Timely |
|
L/M/H |
|
Confidence |
|
L/M/H |
|
Overall |
Assessment is based on lowest rating of all components | L/M/H |
Further information
Further information on Effectiveness assessment is provided in the section on Developing an Assessment Profile.
Requirements
The required benefit and cost appraisal methodology for public transport improvements is benefit-cost analysis and the required measure is the benefit-cost ratio (BCR).
The Transport Agency requires that Approved Organisations and the Transport Agency (state highways) use the Transport Agency Economic Evaluation Manual(external link) procedures and templates to determine the BCR for public transport improvement activities.
Ratings
If the calculated BCR is below 1.0, then the activity is considered to be economically inefficient. In this case, no rating for benefit and cost appraisal will be given.
Assuming that the BCR is 1.0 or higher, the benefit and cost appraisal for public transport improvements falls into one of three bands:
BCR range 1- 3
All activities with BCR greater than or equal to 1 and below 3 are prioritised in this band.
BCR range 3 - 5
All activities with BCR greater than or equal to 3 and below 5 are prioritised in this band.
BCR range > 5
All activities with BCR greater than or equal to 5 are prioritised in this band.
Non-monetised benefits and additional benefits
Non-monetised benefits may be taken into account and, if the Transport Agency considers these benefits to be significant, may result in a higher rating.
Additional benefits are usually in the form of wider economic benefits that are not specifically covered by the Transport Agency’s Economic Evaluation Manual. Additional benefits may result in a higher rating or be presented as part of sensitivity analysis.
Use of generic or default BCR
No placeholder, generic or default BCRs are to be used.
Peer review
The Transport Agency reserves the right to require a peer review of benefit and cost appraisal determinations and measures, including any non-monetised/additional benefits and adverse impacts, regardless of the scope, prior to an investment decision.
Insufficient information (1*)
An activity can be included in the National Land Transport Programme (NLTP) when no benefit and cost appraisal has been made or when no robust evidence is lacking to support the assessment. In such cases the rating for benefit and cost appraisal will default to 1 for improvement activities. The Transport Agency represents these activities as 1* to indicate that more information is required to achieve a robust assessment profile.
An activity will not be considered for funding approval with a 1* status.
Further information
Further information on Benefit and Cost Appraisal is provided in the section on Developing an Assessment Profile.
