Budget Transfer: Sludge Thickener Project

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A decision made 13 January 2014:

Decision Reference: MD-TR-2013-0119
Decision Summary Title:	Budget transfers to fund the Sludge Thickener Project		Date of Decision Summary:	12th December 2013
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Budget transfers to fund the Sludge Thickener Project		Date of Written Report:	12th December 2013
Written Report Author:	Head of Decision Support		Written Report : Public or Exempt?	Public
Subject: Approval of non-recurring budget transfers to fund the Sludge Thickener Project.
Decision(s): The Minister approved non-recurring budget transfers in 2013, of £4,479,000 from Transport and Technical Services (TTS) Infrastructure capital head of expenditure and £51,094.04 from TTS Sewage Treatment Works capital head of expenditure to TTS Sludge Thickener capital head of expenditure to fund the Sludge Thickener Project.
Reason(s) for Decision: Article 18(1)(c) of the Public Finances (Jersey) 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure. This funding will enable the completion of the Sludge Thickener Project and provide the island with a fit for purpose Sludge Thickener Plant.
Resource Implications: The TTS Infrastructure capital head of expenditure will decrease by £4,479,000 and the TTS Sewage Treatment Works capital head of expenditure will also decrease by £51,094.04 in 2013, with the TTS Sludge Thickener capital head of expenditure increasing by identical amounts.
Action required: Business Manager to inform the TTS Finance Manager that this decision has been approved.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget Transfer: Sludge Thickener Project

Treasury and Resources

Ministerial Decision Report

Budget transfers to fund the Sludge Thickener Project

Purpose of Report

To enable the Minister to approve non-recurring budget transfers in 2013, of £4,479,000 from Transport and Technical Services (TTS) Infrastructure capital head of expenditure (Q00RL10011) and £51,094.04 from TTS Sewage Treatment Works capital head of expenditure (Q0000C2666) to TTS Sludge Thickener capital head of expenditure (Q00BP11004) to fund the Sludge Thickener Project.

Background

The Sludge Project Board had previously agreed to transfer additional funding from other TTS capital heads of expenditure to the Sludge Project in order to fund various enhancements to the project which would enable the plant to run in a more efficient and cost effective manner. These enhancements included the inclusion of a CHP unit, Gas Scrubber and a move to a pasteurisation process.

At the point in which Enpure Limited went in administration, TTS also ring-fenced an additional sum of capital for use in restarting of the project. This ring-fenced sum will also require transferring into the Sludge Project capital head of expenditure to allow Phase 2 to progress.

The below table sets out the amounts of capital to transfer to the existing Sludge Thickener capital vote:

Finally, to provide extra contingency an amount of £400,000 has been identified and ring-fenced within the Ash Cell rolling vote in 2013 and, depending upon approval, identified within the Liquid Waste capital vote in 2014.

3. Recommendation

The Minister is recommended to approve non-recurring budget transfers in 2013, of £4,479,000 from Transport and Technical Services (TTS) Infrastructure capital head of expenditure (Q00RL10011) and £51,094.04 from TTS Sewage Treatment Works capital head of expenditure (Q0000C2666) to TTS Sludge Thickener capital head of expenditure (Q00BP11004) to fund the Sludge Thickener Project.

4. Reason for Decision

Article 18(1)(c) of the Public Finances (Jersey) 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.

This funding will enable the completion of the Sludge Thickener Project and provide the island with a fit for purpose Sludge Thickener Plant.

Resource Implications

The TTS Infrastructure capital head of expenditure will decrease by £4,479,000 and the TTS Sewage Treatment Works capital head of expenditure will also decrease by £51,094.04 in 2013, with the TTS Sludge Thickener capital head of expenditure increasing by identical amounts.

Report author : Head of Decision Support	Document date : 12 December 2013
Quality Assurance / Review : Business Manager	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DSs, WRs and SDs\2013-0119 - Sludge Thickener Project\WR - Sludge Thickener Project.doc