Capital expenditure claim

Status
In progress

We assess the prudency and efficiency of Aurizon Network’s capital expenditure to determine if it should be included in Aurizon Network’s regulatory asset base for the Central Queensland coal network.

In our assessment we focus, for each project, on the:

•              scope of works

•              standard of works

•              cost of works.

The assessment framework is set out in schedule E of the 2017 access undertaking.

Capital expenditure claim 2019–20

Aurizon Network submitted its 2019–20 capital expenditure claim on 31 July 2020.

We have engaged Arcadis to provide engineering advice on the prudency and efficiency of Aurizon Network’s claim. As we have done in the past, a sample of projects has been chosen for Arcadis to assess.

The proposed claim and sample of projects are available for download below.

We invited stakeholders to submit their views on Aurizon Network’s 2019–20 capital expenditure claim and the proposed sample. Submissions closed on Tuesday 22 September 2020.

Reports and papers

Date
Title Document
03 September 2020 AN–Capital expenditure report 2019–20 pdf, 822.09 Kb
Date
Title Document
03 September 2020 QCA–Stakeholder notice and sample list pdf, 761.21 Kb

Capital expenditure claim 2018–19

Aurizon Network submitted its 2018–19 capital expenditure claim on 25 October 2019 and subsequently amended the claim on 22 November 2019 and 19 December 2019.

We engaged Flagstaff Consulting Group (FCG) to provide engineering advice on the prudency and efficiency of Aurizon Network’s claim. A sample of projects was chosen for assessment.

Aurizon Network further submitted a revised claim on 30 April 2020 in response to the consultant’s report and the QCA’s initial assessment.

We approved the revised 2018–19 capital expenditure claim on 27 May 2020.

All related documents are available for download below.

Reports and papers

Date
Title Document
01 June 2020 Final report QCA – decision notice pdf, 392.05 Kb
Date
Title Document
01 June 2020 Submission Aurizon Network – response to decision – revised 2018-19 claim pdf, 333.67 Kb
01 June 2020 Submission Aurizon Network – submission on consultant report pdf, 913.31 Kb
Date
Title Document
24 February 2020 Consultant report Flagstaff – Flowchart methodology assessment of Aurizon Network 2018-19 capex pdf, 191.11 Kb
24 February 2020 Consultant report Flagstaff – Assessment of Aurizon Network 2018-19 capex pdf, 18.68 Mb
Date
Title Document
25 October 2019 Submission AN—Capital expenditure report 2018–19 pdf, 1000.39 Kb
22 November 2019 Submission AN—Amendment to 2018–19 capital expenditure claim pdf, 225.93 Kb
24 February 2020 Submission Aurizon Network FY19 Capital Expenditure – Amendment December pdf, 294.60 Kb
Date
Title Document
11 November 2019 Notice QCA—Stakeholder notice and sample list pdf, 692.83 Kb
27 November 2019 Notice QCA—Amended sample list pdf, 549.09 Kb
24 February 2020 Notice QCA—December Amended sample list pdf, 549.89 Kb

Capital expenditure claim 2017–18

Aurizon Network initially submitted its 2017–18 capital expenditure claim on 31 October 2018. It amended its claim on 16 November 2018.

We approved most of Aurizon Network’s amended capital expenditure claim for 2017–18, except for two projects that required adjustments, as outlined in our decision notice. All relevant documents, including our decision notice, are available for download below.

Report and papers

Date
Title Document
24 October 2019 Final report QCA—final decision notice pdf, 2.28 Mb
Date
Title Document
02 October 2019 Consultant report AECOM—October notice of advice (redacted) pdf, 1.12 Mb
24 July 2019 Consultant report AECOM—July notice of advice (redacted) pdf, 979.92 Kb
24 May 2019 Consultant report AECOM—assessment report (redacted) pdf, 979.59 Kb
Date
Title Document
12 September 2019 Submission Aurizon Network—response to draft decision pdf, 13.06 Mb
24 June 2019 Submission Aurizon Network—submission on consultant report (redacted) pdf, 17.68 Mb
31 October 2018 Submission Aurizon Network—letter pdf, 203.62 Kb
16 November 2018 Submission Aurizon Network—amendment letter pdf, 300.98 Kb
16 November 2018 Submission Aurizon Network—amended capital expenditure claim 2017–18 report pdf, 1.33 Mb
Date
Title Document
27 May 2019 Notice QCA—stakeholder notice on consultant report pdf, 546.24 Kb
14 February 2019 Notice QCA—amended sample notice pdf, 558.95 Kb
19 November 2018 Notice QCA—stakeholder notice and sample list pdf, 693.99 Kb
20 September 2018 Other documents QCA—assessment approach for Aurizon Network’s 2017–18 capital expenditure claim pdf, 648.13 Kb
Date
Title Document
03 December 2018 Submission Pacific National—submission on Aurizon Network’s claim pdf, 454.60 Kb