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A decision made 19 February 2010 regarding: Fiscal stimulus - budget allocation to Transport and Technical Services for Railway Walk foul sewer upgrade project.

Decision Reference: MD-TR-2010-0029
Decision Summary Title:	Fiscal Stimulus Budget Allocation – Transport & Technical Services Department		Date of Decision Summary:	10th February 2010
Decision Summary Author:	Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Allocation of fiscal stimulus funding to the Railway Walk foul sewer upgrade project		Date of Written Report:	12th February 2010
Written Report Author:	Acting Fiscal Stimulus Programme Manager		Written Report : Public or Exempt?	Public
Subject: Economic Stimulus Plan: budget allocation to the Transport and Technical Services department for the delivery of the Railway Walk foul sewer upgrade project.
Decision(s): The Minister approved the allocation of £485,155 to the Railway Walk foul sewer upgrade project, which will be transferred to the department budget as soon as possible. This will enable the contract to be let to the contractor which submitted the preferred tender. He further instructed the civil infrastructure project group to report on spend of all stimulus monies, and project progress/performance, on a monthly basis in accordance with guidelines set by the Treasury, and return any unspent monies on completion of the project.
Reason(s) 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 £485,155 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.
Resource Implications: No financial resource implications other than those explained above and in the accompanying report. No manpower resource implications.
Action required: Treasury to be informed of decision to release necessary funds to the Transport and Technical Services budget.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Fiscal stimulus - budget allocation to Transport and Technical Services for Railway Walk foul sewer upgrade project

Treasury and Resources Minister

Report

Allocation of fiscal stimulus funding to the Railway Walk foul sewer upgrade project

Purpose of Report

The Tenders have now been received and evaluated and the tender evaluation undertaken by 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.

Background

The existing concrete foul sewer along the Railway Walk was installed in 1957. Over the years the upstream network of sewers has been constantly added to and now this main artery sewer takes the majority of the foul sewage from St Brelade, St Peter, and St Ouen, together with part of St Mary. In this sub network, there are now a total of 33 pumping stations that discharge their flow in one way or another through this sewer.

In 2004, investigation of the sewer found that it was suffering from hydrogen sulphide attack which has resulted in corrosion of the pipework. The investigation resulted in completion of Phase 1 of the Railway Walk foul sewer upgrade, which was between Pont Marquet and the Le Mont Nicolle bridge.

The remaining downstream section between the Le Mont Nicolle Bridge and the sewer in Mont Les Vaux was, at that time, considered to be structurally acceptable, although its condition continued to be monitored. This monitoring has now determined that remedial works are necessary to address the continued degradation of this section, and reduce the risk of failure of the sewer.

Comments

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.

A necessary change in methodology relating to the repair of a section of the Railway Walk pipeline was identified during the planning phase and has resulted in the total scheme cost coming in at c. £310,000 lower than was provisionally allocated to this project in the provisional fiscal stimulus programme. Adjustments to the pre-tender estimate to take account of this revised method for upgrading the sewer support that the preferred tender is within an acceptable variance of the pre-tender estimate.

Recommendation

Recommendation from the Fiscal Stimulus Steering Group

The Steering Group recommends that the Minister for Treasury and Resources allocates further funding of £485,155 to the Railway Walk foul sewer upgrade project and approves the transfer of that amount to a new capital head of expenditure.

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 £485,155 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.

Resource Implications

No financial resource implications other than those explained above and in the accompanying report. No manpower resource implications.