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Housing Development Fund: Andium Homes Ltd: Loan: Le Squez - Phase 4: Enabling Works

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

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  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 9 November 2015:

Decision Reference:  MD-TR-2015-0116

Decision Summary Title:

Housing Development Fund - Andium Homes Ltd: Approval of loan -  Le Squez Phase 4 enabling works

Date of Decision Summary:

26th October 2015

Decision Summary Author:

Head of Shareholder Relations

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Housing Development Fund - Andium Homes Ltd: Approval of loan in the sum of £2,185,000 (Le Squez Phase 4 enabling works)

Date of Written Report:

26th October 2015

 

Written Report Author:

Head of Shareholder Relations

Written Report :

Public or Exempt?

Exempt – FOI: Article 33

Subject: Approval of a loan in the sum of £2,185,000 to Andium Homes Ltd for Le Squez Phase 4 enabling works.

Decision(s): The Minister for Treasury and Resources:-

  • Approved the loan of £2,185,000 at an interest rate of 4.3% to Andium Homes Ltd for a period of approximately 15 months expiring at the end of 2016 and on the basis of the loan schedule (Appendix 1) attached to the accompanying written report.
  • Agreed that Andium Homes Ltd should be advised that the interest rate of 4.3% is for this enabling works element of the scheme only. The main element of the scheme which is identified as a “New Build and Redevelopment Project” in Andium Homes strategic business plan will attract a 5% interest rate and Andium Homes Ltd should use this rate in their financial modelling for the main scheme.
  • Authorised the Treasurer of the States to sign the loan agreement in accordance with this Ministerial Decision.
  • Requested that a loan agreement based on the model loan agreement approved in MD-TR-2014-0084 be prepared.
  • Requested that the States are notified of the issuance of the new loan agreement in accordance with Regulation 13(4) of the Public Finances (Transitional Provisions) (No. 2) (Jersey) Regulations 2005.

 

This loan will be met from the £207 million allocated from the bond issued and earmarked for lending to Andium Homes Ltd.

Reason(s) for decision:  To fund Andium Homes Ltd pre-contract fees and enabling works for Le Squez phase 4 as approved by the Andium Homes Board in support of P.33/2013: The Reform of Social Housing.

The refurbishment scheme is an identified project in Andium’s Stategic Business Plan 2014-2019 and it is also a “New Build and Redevelopment Project”.

 

The States, in approving P.129/2014 on 22 September 2014 agreed that the Minister could lend under Article 3(3)(b) of the Public Finances Law, 2005 to Andium Homes Ltd.

Resource Implications:  There are no additional resource implications, financial or manpower, as a result of this decision.

Action required: Head of Shareholder Relations to produce the necessary loan agreement, based on the model loan agreement approved in MD-TR-2014-0084 for signing by the Treasurer of the States.

Head of Shareholder Relations to advise the Chief Operating Officer and Finance Director of Andium Homes Ltd that the loan request has been approved and that the loan agreement is being produced, but that the interest rate of 4.3% does not set a precedent for the main loan for the scheme in 2016, for which they should assume for financial modelling purposes a rate of 5%.

Signature:

 

 

Position: Senator A J H Maclean, Minister for Treasury and Resources

Date Signed:

 

Date of Decision:

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