Treasury and Resources
Ministerial Decision Report
Allocation of fiscal stimulus funding to the Rozel rising mains upgrade project
1. Purpose of Report
The Tenders have now been received and evaluated and the tender evaluation undertaken by the Transport and Technical Services department (“TTS”) has been subject to review by the Fiscal Stimulus Steering Group (the “Steering Group”) to ensure that the Fiscal Stimulus criteria are met. This paper summarises the resulting recommendation.
2. Background
The existing rising mains at three stations in Rozel are old Class B strength, uPVC pipes, which are now known to be susceptible to failure over time due to the variations of pressure that occurs within the pipe. Failure of the pipes could lead to pollution. Rozel beach and harbour is a valued Island tourist attraction and any pollution of the beach as a result of a failed foul sewage rising main must be avoided.
Several failures of this type of mains have already been recorded on the Island in previous years, notably at Le Bourg, which has since been upgraded. The project continues TTS’s programme of works to gradually replace these Class B mains with higher strength pipes that are better suited to the variations in pressure that occur. The scheme entails the laying of new polyethylene pipes along the route of the existing rising mains for three pumping stations in St Martin, Rozel 1, Rozel 3 and Rozel 4. These three stations at Rozel are close together and as a result it is considered to be more efficient to replace the three as part of the same project.
3. Main Content
Tender Process and Results
TTS has followed a pre-agreed process in conducting the tender and the process and outcomes have been subject to review by the Steering Group, which has resulted in the recommendation below.
There are some additional items of work included in the final scheme that were not planned for in the pre-tender estimate, such as the identification of certain underground conditions that impacted the type of materials to be used and the need to incorporate some weekend work in order to ensure appropriate access is maintained to properties in the area. As a result the total cost of the scheme is c. £111k higher than the pre tender estimate and the amount provisionally allocated to the project from the fiscal stimulus fund which was £580,000 (£30,000 of which has already been allocated). TTS has confirmed that the total project cost of £691,346 represents value for money, and if appropriate adjustments are made to the pre-tender estimate results in a price from the preferred contractor which is within an acceptable variance and below the comparable pre-tender estimate. TTS has have committed to funding the difference of £111,346 from existing department resources for 2010.
4. Recommendation
Recommendation from the Fiscal Stimulus Steering Group
The Steering Group recommends that the Minister for Treasury and Resources allocates further funding of £550,000 to TTS for the Rozel rising mains upgrade project and approves the transfer of that amount to a new capital head of expenditure.
5. Reason for Decision
A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The project meets the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The £550,000 allocation to the project will enable the civil infrastructure project group to let the contract and deliver the scheme in accordance with the critical path.
6. Resource Implications
No financial resource implications other than those explained above.
No manpower resource implications.