Rigorous application of the investment decision making framework gives effect to the GPS priority of achieving value for money. Entry to the investment decision making system is through the assessment of the business case, where proposals are assessed for evidence to identify the strategic case for investment.
The business case approach forms the basis for activity and programme development for investment from the NLTF. It supports planning and investing for outcomes, ensuring early collaboration between stakeholders and progressive development of a robust, evidence based investment case.
The business case provides the evidence to identify the strategic case for investment, and develops a short-list of potential options. It identifies the best option to address the issue and the benefits that will be realised while managing delivery risk.
At each investment decision point an assessment of the business case is undertaken by Waka Kotahi before the activity progresses to assessment under the IAF.
Proposals that pass the assessment of the business case ‘gateway’ are then assessed against the two IAF factors, results alignment and cost benefit appraisal, and then prioritised.
Waka Kotahi will also assess that proposals are appropriately scaled and integrated according to their context, and options for the response are considered on a mode-neutral basis.