Economic Impact Analysis
All investment has an economic dimension, and all economics has a social dimension. We develop the models which link the two quantitatively, to calculate economic and social impacts of investment options, so clients may optimally allocate their capital, labour and time resources.
Biruu provides its clients with thoroughly researched reports that specifically address the clients’ needs and purposes. Data is meticulously presented and analysed and findings are clearly detailed. Biruu offers clients clear commercial advice based on data driven research and analysis.
Biruu has a broad and deep understanding of financial and economic research and analysis. It has the mathematical knowledge and experience required to construct:
Input-Output Economic Multiplier model from National Accounts data
Predictive Multi-Factor Linear Regression Models to assist in determining relationships between sets of data
Mean Reversion Models of fundamental economic data to provide quantitative analysis for the strategic investment decision making process
Black-Scholes Option Pricing Model
Financial Statement Analysis Models, including Debt Servicing Capability Models
Public Sector Comparator Financial Models to provide benchmarks for the Public Private Partnership proposed projects
Evidencing the credibility of its analysis and advice, Biruu has prequalified on the following expert panels:
Whole of Victorian Government Professional Advisory Services Panel (Commercial and Financial Advisory Services) – Department of Treasury and Finance (Victoria)
Panel of Pre-Qualified Financial Advisory Services – Specialist Industry Adviser (NSW Treasury)
Panel of Accredited Investment Logic Map Facilitators – Commerce and Works Directorate (ACT)
Panel of Project Feasibility, Initiation and Development Managers – Development Victoria
Planning Advisory Panel (Urban Economics) – Victorian Planning Authority
Health Economic Services Panel – Department of Health (Australian Government)
eServices Register – Department of Treasury and Finance (Victoria)
Professional Resource Panel – Public Transport Victoria
General Services Panel (Commercial Advisory) – Department of Environment, Land, Water and Planning (Victoria)
Panel of Gateway Review Team Leaders – Department of Treasury and Finance (Victoria)
Panel of Accredited Investment Logic Management Facilitators – Department of Treasury and Finance (Victoria)
Specialist Advisory Service Provider Panel – Level Crossing Removal Authority (Victoria)
Technical Advisory Services Panel – Department of Transport (Victoria)
Footscray Library Community & Cultural Hub, for City of Maribyrnong
Biruu was engaged to produce a full Business Case for the Footscray Library Community & Cultural Hub project, which sought funding to build a hub with a new library, theatre, gallery, co-working space and community space in the place of the existing library in Footscray.
The development would bring wide ranging economic benefits to Footscray. The library would increase engagement, learning and service provision in the region, including services for multicultural and vulnerable Victorians. The development as a whole would improve Footscray as an investment and employment destination by developing its CBD. Using Australian Bureau of Statistics (ABS) Input/Output (I-O) Multiplier methodology, Biruu determined the economic benefit of four project options of differing developmental scales compared to the Base Case.
St Kilda Pier Activation and Revitalisation Business Case, for Parks Victoria
St Kilda Pier was nearing the end of its service life. A redevelopment was considered to provide an opportunity to make something special that enriches the visitor economy and better protects the pier’s penguins. Parks Victoria engaged Biruu to prepare a Full Business Case examining all aspects of this proposal, including calculating its potential economic impacts.
As an Appendix to the Business Case, Biruu produced an Economic Impact Assessment, which evaluated the economic impact of the redevelopment of the pier under three different economic scenarios:
Economic Study Scenario 1
Continue to remediate the pier and replace like-for-like after the end of its practical life
Economic Study Scenario 2
Replace like-for-like pier immediately
Economic Study Scenario 3
Redevelop curved pier immediately
The economic model used in this assessment considered the capital expenditure, operating costs, rental revenue, and overnight tourism benefits under various scenarios.
Station Pier Redevelopment, for Victorian Ports Corporation (Melbourne)
Biruu was engaged by Victorian Ports Corporation (Melbourne) to develop a Business Case for the redevelopment of Station Pier. With larger and more numerous cruise ships berthing at Station Pier each year, and new, larger Spirit of Tasmania vessels on the way, Station Pier requires redevelopment to meet rising demand.
Based on forecast cruise ship arrivals to Station Pier, Biruu estimated the economic and employment impacts of redeveloping the Station Pier and the consequent increased tourism in the cruise industry. This involved considering passenger make-up (Victorian, interstate or international), crew numbers, the type of arrival (transit visit or turnaround), the size of the arriving vessel and the spend per type of passenger.
Economic Impact Assessment of Large Footloose Film and Television Projects on the Victorian Economy, for Department of Economic Development, Jobs, Transport and Resources
Biruu was engaged to produce an economic impact assessment which quantified the benefit of increased economic activity resulting from the use of Victorian Government financial incentives to attract “large footloose screen production” to the state. Biruu investigated the:
Importance of Victorian Government financial incentives in securing footloose activity (measured over the last six years and fifteen years periods) and the applicable return on investment measured as a benefit cost ratio for the Victorian economy
Competitive strengths and weaknesses of the competing jurisdictions of New South Wales and Queensland
Relative differences in value and benefits to Victoria between interstate and international footloose projects.
The findings of this project were intended to help determine the expected return on investment from any given large footloose project considering Victoria as a potential production location and inform Creative Victoria’s broader policy development and future strategy.
Ballarat Showgrounds, for Regional Development Victoria
Biruu collaborated with Regional Development Victoria to develop a business plan to redevelop the Ballarat Showgrounds as the two main state political parties had promised around $5m funding. Biruu's role was to assist in leveraging this commitment beyond the refurbishment of the current showgrounds to create a new multi-purpose major event venue for the Ballarat community, managed by Ballarat Agricultural and Pastoral Society. As part of the Business Plan, Biruu evaluated the main economic impacts associated with the development of the new showgrounds. These included:
an increase in construction activity at the showgrounds site,
an increase in expenditure by visiting and local patrons of the showgrounds,
an acceleration of the rate of development of the Victoria Park precinct of Ballarat, and
an increased development of the agricultural and livestock industries in Central Victoria.
Bendigo CBD Transformation Business Case, for Regional Development Victoria
Biruu was engaged to produce a Business Case for the Bendigo CBD Transformation Project. The project sought investment to develop a high-quality government, commercial and community precinct in Central Bendigo for improved government service provision, regional CBD renewal, relocation of government staff and the economic diversification and growth of the region.
Biruu compared the economic benefits of two options:
Option 1 - Develop an office building in Bendigo.
Option 2 - Develop an office building in Bendigo and relocate 100 staff to Bendigo.
Ballarat Gardens and Lake Visitor Precinct Redevelopment, for City of Ballarat
The Gardens and Lake Visitor Precinct Redevelopment - Conceptual Masterplan seeks to enhance the Ballarat Botanic Gardens and Wendouree Lake by activating the retail, recreational and educational offerings in the area. Biruu reviewed the tourism components associated with Phase 1 – the Fernery, examining the garden tourism industry, the Ballarat tourism market and the economic effect of increasing the number of overnight stays in Ballarat.