2017-10-13 Special Meeting

SPECIAL MEETING AGENDA                                                                  13 OCTOBER 2017




Given this project will cover a number of future years, Net Present Value Analysis (NPV) has been
used to compare the three scenarios and identify the likely total cost of the remediation component
of the project (in 2017 dollars). The table below provides a summary of the total cost of each
scenario in addition to the investment required per ratepayer to fund the project.




Note 1:   Represents the total potential costs over the 5 year rehabilitation period.
Note 2:   For modelling purposes, the additional contribution by NPA towards rehabilitation (up to $125,000 pa
          for 5 years totalling $600,000 plus inflation) has been excluded. The payment of these funds by NPA
          would reduce the above costs by the equivalent contribution over the 5-year period for each scenario.
Note 3:   For modelling purposes, potential grant funds have been excluded. Any grant funds received would
          reduce the above costs.

The detailed cashflows associated with the total project costs for each scenario are provided for
information in Attachment 6. A summary snapshot is outlined below.

Figure 1: Scenario Cashflows
 $4,000,000

 $3,500,000

 $3,000,000

 $2,500,000

 $2,000,000

 $1,500,000

 $1,000,000

   $500,000

          $0

  ($500,000)
               2018    2019    2020   2021    2022    2023   2024    2025   2026    2027
          Basecase (Natural Regeneration)       Assisted Regeneration       Reconstruction



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