Cost allocation framework for IWM projects


Integrated Water Management (IWM) plans and projects often propose innovative investments that provide multiple benefits to many different entities. However there are many challenges that exist with allocation of IWM costs and responsibilities, and this can present a barrier to some IWM projects. 

The Department of Environment, Land, Water and Planning (DELWP) have developed a cost-allocation process to guide decision making on funding arrangements in such situations.

The framework outlines the following:

  • Quantifying the benefit for each party
  • Allocating roles, responsibilities and costs to parties
  • Comparing costs to benefits for each party
  • Transfering between parties
  • Dealing with risk