NECAP works are undertaken to satisfy workplace health, safety and environmental requirements, or are beyond the scope of the operator’s annual maintenance plan. They are not designed to increase terminal capacity.
The 2010 DBCT access undertaking contained a streamlined approval process for NECAP expenditure less than $20 million per annum to be included in the regulatory asset base (RAB) provided that the following requirements were met:
- The expenditure is less than $20 million per annum and the total NECAP expenditure for the term of the undertaking is less than $110 million.
- The expenditure is capital expenditure, not operating expenditure.
- The terminal’s users did not object to including the expenditure into the regulatory asset base.
- The operator (DBCT Pty Ltd) has recommended in writing that this expenditure be incurred (cl. 12.10(b)).
In addition, the undertaking provides for NECAP expenditure in excess of $20 million per year to be included in the RAB if it is considered prudent having regard to a set of criteria (cl. 12.10(c)).