Armidale Oaky River Dam Valuation

Description

TSG was engaged by Armidale Regional Council (ARC) to prepare a detailed financial and economic valuation of Essential Energy's Oaky River Hydro Scheme to support the Council's lodgement of a binding, best and final offer for the property. 

To deliver the valuation, The Stable's work has consisted of asset characterisation, 'Fair Value' financial valuation, benchmarking economic assessment, best final offer range and suggested council special conditions and the final valuation financial and economic integration report. The report provided specific advice on ARC's benefit for water security enhancement under the Armidale water supply water security options, the use of the facility for hydropower generation, and other uses of the property. 

The Stable Group ensured that the approach to the valuation was consistent with the NSW Government Guidelines on asset valuation and accounting treatment. Each asset, including the dam, power station, access roads and disused engineering assets, was itemised and identified as tangible and intangible (including any regulatory controls that provide assets or liabilities). Within the valuation of each item, the value estimate was calculated, as well as the total liabilities associated, including maintenance and refurbishment, regulatory and contamination impairment, and contingent liabilities. 

The final report included valuations for the seven use options for the site, including tactical bid options, should the Armidale Regional Council have chosen to optimise the selected item.