Goodbye NDRRA, Hello DRFA - Preparing councils to manage asset reconstruction funding after the next natural disaster

Abstract

Since the 1990’s, after a natural disaster councils around Australia have been used to obtaining funding for reconstruction of roads, bridges and other assets from the State and Federal Governments through the Natural Disaster Relief and Recovery Agreement (NDRRA) administered by Queensland Reconstruction Authority. From 1st November 2018, a new agreement comes into force: ‘Disaster Recovery Funding Arrangement’ (DRFA). This presentation will focus primarily on Category B measures ‘Emergency Works and Immediate Reconstruction Works’ and ‘Essential Public Asset Reconstruction’ formerly Emergent Works and Restoration of Essential Public Assets (REPA) respectively. However, many of the requirements also impact other categories of assistance including Counter Disaster Operations. While many aspects of the new arrangement are similar to NDRRA, such as an understanding that eligible projects are cost reimbursable, there are differences in the way the funding is requested, approved and acquitted, resulting in changes in the risk allocation between the Federal and State Governments and LGA’s. The new arrangement requires a higher level of preparedness by Council’s in particular in having data available to demonstrate ‘pre-disaster function’ to justify the restoration of an essential public asset in a format set out in the DRFA. While some aspects, such as Emergent Works have not changed greatly, there are new opportunities which include Immediate Reconstruction, which can take place in the three months after an asset is accessible and allows full reconstruction immediately. However, to take advantage of this opportunity, councils need to have processes in place to identify appropriate immediate reconstruction and track the associated costs without the risk of undertaking ineligible works. Key in this is ensuring field staff are able to make appropriate decisions. Timeframes for submission of packages of projects have tightened and will require a review of procedures for assessment of asset damage, preparation of submissions, and obtaining a Cost Estimation or Market Response, which now have a time limit of 12 months from the disaster. Cost Estimation will be based on each Council’s Benchmark Rates prepared in advance with QRA. Any errors in these rates will impact the level of reimbursement for works. Obtaining a Market Response requires assessment, scoping, design and tender for construction – a challenge for asset replacement such as bridges and floodways, and QRA are targeting 9 months after the disaster. This presentation will provide delegates with an overview of the DRFA, changes from NDRRA and a roadmap of actions to undertake to begin preparation for the next event.