Memorandum No. 91-1 of 4th January 1991 covered a number of initiatives designed to improve the planning and assessment of capital works projects.

I wish to draw your attention to the document attached to the Memorandum entitled "Economic Appraisal of Capital Works Principles and Procedures Simplified" and specifically to the requirements that:

"An economic appraisal should be undertaken at the earliest possible stage in project development, before any planning commitment, real or implied, is given to a particular option."

"A public announcement which outlines details of a proposed project prior to an economic appraisal being undertaken may constrain the Government's choice of possible options and involve significant cost penalties, and should therefore be avoided."

Further advice on economic appraisal of major projects may be obtained by contacting R Sayers, Senior Economic Analyst, Capital Works Unit, Premier's Department on 228 4641.

Yours sincerely

Nick Greiner MP