Development of cost-allocation framework for Integrated Water Management Projects

Department of Environment, Land, Water and Planning (VIC)

RMCG developed a robust and replicable framework for establishing a clear set of principles for cost-allocation in Integrated Water Management situations with multiple policy and cost drivers, and as many beneficiaries; a framework to guide implementation of cost-allocation decisions in practice; and guidance on balancing quantified and unquantified benefits and drivers, as well as polluter pays/beneficiary pays principles and equity concerns.

We drew on our current and recent experience in the economic and financial assessment of integrated water management projects in Victoria, as well as our expertise in economic regulation and cost allocation, to develop guidance material on allocating costs between parties for IWM projects.

The key output for this project is a concise guidance document on cost-allocation for IWM projects, for use by the Victorian water industry.