Betterment: Aurukun Access Road

Aurukun Shire Council

Aurukun Access Road – project summary

  • Aurukun Access Road was a gravel road that provides the only road link to and from the Aurukun community.
  • The road was damaged in 2010, 2011, 2012 and 2013.
  • Betterment funding from 2013 was used to bitumen-seal a 10-kilometre section of the road that was particularly vulnerable to flood damage.
  • It has since withstood the impacts of 10 separate natural disaster events, making it the most frequently impacted completed betterment project to date, remaining functional with only very minor damage.
  • In addition, $1.2 million of Betterment funding from 2019 was used to infill scoured sections of the road and stabilise the shoulders and embankments and was subsequently impacted by two events in 2022.

Restoration (two projects): $979,366
Betterment (two projects): $2,299,783
Avoided cost over 10 events: $8,637,947
Value of indirect benefits: $3,945,762 
Total benefit over 10 events: $12,583,709

SAVi Tool assessment of indirect benefits

The SAVi tool has been used to consider the wider economic benefits for this project, by using a bespoke summary of indicators which have been assumed most relevant for the Aurukun Shire community. The analysis has been based on the estimated production revenue and number of people impacted per day during a disaster event. Table 1 provides a summary of the non-road benefits used in this analysis.

Table 1 – SAVi tool inputs Aurukun Access Road

By inputting project data into the SAVi tool across the 15 indicators, it was estimated that an additional $29,228 per day was saved when accommodating for the indirect social, environmental, and economic benefits of the project.

Non-road benefits

Price ($)

 

 %

 1. Fuel cost

264

 AUD/day

0.9 %

 2. O&M cost of vehicles

17

 AUD/day

0.1 %

 3. O&M cost of roads

4

 AUD/day

0.0 %

 4. Cost of travel time

184

 AUD/day

0.6 %

 5. Air pollution

607

 AUD/day

2.1 %

 6. Noise pollution

105

 AUD/day

0.4 %

 7. Water pollution

91

 AUD/day

0.3 %

 8. GHG emissions

194

 AUD/day

0.7 %

 9. Nature and landscape

67

 AUD/day

0.2 %

 10. Crop and fruit revenue

17,972

 AUD/day

61.5 %

 11. Fish revenue 

77

 AUD/day

0.3 %

 12. Livestock revenue 

783

 AUD/day

2.7 %

 13. Access to essential items/services

5,500

 AUD/day

18.8 %

 14. Access to workplace and schools 

3,300

 AUD/day

11.3 %

 15. Mental health 

65

 AUD/day

0.2 %

 Non-road benefits in 2021 prices

29,228

 AUD/day

100­.0 %

The analysis resulted in a positive Benefit Cost Ratio (BCR), Internal Rate of Return (IRR) and Net Present Value (NPV), indicating that the Aurukun Access Road Betterment Project was a viable project generating positive outcomes to the community. A summary of the results is provided below:

SAVi Tool pilot results Aurukun Access Road

Benefit Cost Ratio (BCR) Internal Rate of Return (IRR) Net Present Value (NPV)

Excluded non-road benefits

Included non-road benefits

 Excluded non-road benefits

Included non-road benefits

Excluded non-road benefits

Included non-road benefits

4.51

6.22

56.1 %

70.1 %

$ 8,778,296

$13,140,994

Project images