Strathfield Stem Centre
Cost Benefit Analysis
The Australian Catholic University (ACU) commissioned HillPDA to prepare a business case on a proposed education facility for Westinvest funding. The proposed facility is a STEM Centre of Educational Excellence – a four level state of the art building. HillPDA provided the economic assessment and cost benefit analysis for the business case prepared by ACU.
The ACU STEM Centre of Education Excellence will deliver transformational change and lasting benefit to Strathfield, its local communities and greater Western Sydney through education. Not just in terms of access, but by increasing knowledge worker capability in the community, leading to an increase in local employment and job opportunities and improved lifestyle choices and liveability.
Our value add
In the first instance the project objectives were worked up with the client. The various programs were identified and financially modelled. From the financial appraisal HillPDA was able to work up the social cost benefit analysis by including a range of externalities that were quantified. This included workforce productivity benefits, higher income levels and education benefits.
Unquantified benefits were identified including research and innovation, international student attraction, increased amenity in the local area and increased local community health and wellbeing.
While the financial modelling showed the assessment demonstrated a high return with an NPV of $25m (7% discount rate) and a BCR of 1.6.
- Financial appraisal
- Economic appraisal (cost benefit analysis)
- Risk assessment
- Business case
Client: Australian Catholic University
Project year: 2022
For more information, contact Adrian Hack, Principal