The amount of public infrastructure that can be delivered is largely dependent on the fiscal capacity of government.
Under the IWA Act, IWA is required to consider the affordability of its recommendations. However, given the time frames, uncertainty regarding future fiscal and economic conditions, variable funding and revenue sources for different sectors, and the limited availability of cost estimates for many proposals, measuring budget capacity for infrastructure delivery over a 20-year time frame is difficult. Some non-build recommendations may also have associated costs. In many instances state government agencies and GTEs may be able to address these as part of their core activities, from within existing budget allocations.
Beyond this budget cycle, some greater flexibility and capacity is available to the WA Government to determine new infrastructure priorities. Where IWA has recommended a build response, further planning and business case development is generally required to prove up the investment and delivery case for each project or program. Robust business cases are a critical step in ensuring the quality of the state’s investment prioritisation process with better cost estimates, and support the development of a more reliable capital investment pipeline. Ultimate project and program investment decisions will also need to consider evolving government priorities, the total Asset Investment Program and private sector capacity to deliver.