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The Bathurst Regional Council commissioned an economic appraisal to assess the benefits of a proposed $5 million upgrade to the Bathurst Regional Airport. The study aimed to evaluate the project's potential to stimulate regional economic growth and address local disadvantages.
id developed a robust framework consistent with Treasury guidelines, incorporating Benefit Cost Assessment, Economic Impact Assessment, and Social Impact Analysis over a 20-year horizon. This approach included sensitivity analyses to ensure the reliability of the projections.
The appraisal identified several key benefits, including
- Positive Net Present Value (NPV) and favorable Benefit Cost Ratio (BCR)
- Increased lease and aircraft movement revenues
- Operational cost savings for airport users
- Induced revenue opportunities and residual value enhancements
The findings supported Bathurst Regional Council's successful application for $2.5 million in funding from the National Stronger Regions Fund, matched by the council's own investment. The upgrades are projected to:
- Stimulate economic output and diversify the local economy
- Attract new private investments and increase council revenues
- Create employment opportunities and support tourism growth

Rob Hall

Chief Economist

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.id’s economic appraisal of upgrades to the Bathurst Regional Airport helped Bathurst Regional Council to secure $2.5m in funding from the National Stronger Region Fund.

The airport contributes to long-term economic development, attracts new businesses and allows for continued growth of the region’s visitor economy. The national funding will be matched dollar for dollar by Bathurst Regional Council.

Business challenge.

What are the economic benefits and economic impacts that could be generated by a $5 million upgrade to the Bathurst Regional Airport? How does this project contribute to economic growth in the region? How does the project support disadvantage in the region?

The .id solution

.id developed a methodology to evaluate the economic and wider benefits of the proposed upgrades to the Bathurst Regional Airport.

To capture the full benefits of the project .id undertook:

Benefit Cost Assessment
Economic Impact Assessment
Social Impact and Disadvantage Assessment
Economic Analysis to highlight the need for the project

The framework that .id developed to quantify the benefits and costs of the upgrades is consistent with Treasury guidelines for the evaluation of capital projects. The benefit cost assessment estimated benefits and costs over a 20-year period and included Sensitivity Analysis to test the robustness of the framework.

The key benefits quantified included:

Net Present Value
Benefit Cost Ratio
Lease Revenue
Aircraft Movement Revenue
Cost Savings
Induced Revenue Opportunities
Residual Value

Outcomes – data driven success

The economic appraisal found that the proposed upgrades would make a valuable contribution to the Bathurst regional economy. The upgrades allow the airport to continue to grow, meet legislative requirements and deliver community benefits such as:

generate economic output
diversify the economic base
attract new private investment
increase council revenue
create new jobs
create cost savings for airport users (e.g. Rex Airlines and Australian Air Force Cadets)
support tourism visitation due to increased efficiency at the airport

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