Business feasibility study for the national 'Out and About' Recycling and Litter Initiative

1. Executive summary

2. Introduction

3. Background to the Initiative

4. Market and competitive environment

5. Financial drivers

6. Business case options

7. Financial assessment

8. Facility needs analysis

9. Management and governance

10. Environmental analysis

11. Risk analysis

12. Bin design requirements

Appendix I: Cranleigh's terms of reference

Appendix II: New Zealand and international advertising bins

Appendix I: Cranleigh's terms of reference

The Ministry for the Environment has commissioned Cranleigh Merchant Bankers in May 2006 to prepare a comprehensive business case for the Out and About Initiative. The key elements of this assignment are: an effective consultation with all key stakeholders to ensure that their requirements are met and that their perspectives are taken into account in the development of the Initiative; and a thorough analysis of factors affecting the Out and About Initiative, namely:

• assessment of the potential market size for recycling facilities, in terms of number of sites and potential advertising revenue
• analysis of impacts on revenue going forward and benefits to various stakeholders
• assessment of the costs of establishing and running such an Initiative, with a view to potential long-term profitability
• analysis of potential constraints to the Initiative nationwide, in terms of likely revenue, site placement and availability of suitable recycling facilities.

The outcome will be a comprehensive written report for the Ministry for the Environment, including the findings of the Business Feasibility Study and recommendations on how best to progress with the Initiative. This report will adhere strictly to the Ministry's style guide.

Our review has been prepared using documentation provided by stakeholders and members of Environmental Beverage Action Group (EBAG). In assessing the feasibility of the implementation of the project, we have relied upon certain key assumptions that have underpinned the current model. We have not audited the information except to discuss some of the major findings and recommendations with appropriate Ministry for the Environment staff and EBAG members.

We have not been asked to test the accuracy or the validity of these key assumptions but we have taken the opportunity to comment on the issues and impacts of these, where appropriate.