2015-16 Capital Works Program September Quarter 2015 ... Web view2015-16 Capital Works Program September Quarter 2015 Progress Report (incorporating June 2014-15)

2015-16 CAPITAL WORKS PROGRAM

September Quarter 2015 Progress Report

TABLE OF CONTENTS

1 INTRODUCTION..............................................................................................1

2 2015-16 CAPITAL PROGRAM...........................................................................1

2.1 2015-16 PROGRAM OVERVIEW...........................................................................12.2 2015-16 PROGRAM EXPENDITURE AS AT 30 SEPTEMBER 2015................................2

2.2.1 2015-16 Capital Upgrades Program..............................................................................22.2.2 2015-16 Urban Renewal Program.................................................................................4

2.3 HISTORICAL EXPENDITURE TRENDS.........................................................................42.4 NON-FINANCIAL (MILESTONE) OUTCOMES.............................................................5

2.4.1 Functional Briefs............................................................................................................52.4.2 Final Sketch Plans..........................................................................................................52.4.3 Construction /Delivery Commenced..............................................................................5

2.5 DELIVERY OF INFRASTRUCTURE FOR THE ACT COMMUNITY.......................................62.5.1 Land Release Program..................................................................................................62.5.2 Public Housing...............................................................................................................62.5.3 Delivery of Transport Infrastructure..............................................................................72.5.4 Community Safety, Corrections and Justice...................................................................82.5.5 Providing Education for All............................................................................................92.5.6 Improved Recreational, Lifestyle and Cultural Opportunities......................................102.5.7 The Environment and Waste Management.................................................................102.5.8 Health.........................................................................................................................11

ATTACHMENTS

APPENDIX 1: SEPTEMBER QUARTER 2015-16

A) 2015-16 CAPITAL WORKS EXPENDITURE SUMMARY BY AGENCYB) 2015-16 CAPITAL WORKS EXPENDITURE BY PROJECT

APPENDIX 2: ADDENDUM JUNE QUARTER 2014-15

A) 2014-15 CAPITAL WORKS EXPENDITURE SUMMARY BY AGENCYB) 2014-15 QUARTER CAPITAL WORKS EXPENDITURE BY PROJECT

FRONT COVER PHOTOS

BLACK MOUNTAIN SCHOOL UPGRADE CALVARY HOSPITAL CAR PARK

2015-16 Capital Works ProgramSeptember Quarter Report

1 IntroductionThis report details the Government’s revised 2015-16 Capital Works Program and outlines key project achievements for the quarter ending 30 September 2015. Details of the Capital Works Program outcomes by agency and project for the September quarter 2015 are at Appendix 1.

Appendix 2 contains the June quarter 2015 outcomes for the 2014-15 Capital Works Program. This information supplements the previous quarterly reports on the 2014-15 program and high level reporting on the financial performance of the 2014-15 Capital Works Program outlined in annual reporting.

2 2015-16 Capital Program2.1 2015-16 Program Overview

The 2015-16 Budget continued the significant investment in capital works across the Territory.

The original budgeted Capital Works Program, as published in the 2015-16 Budget Papers, was $699 million. This figure was amended to $748 million to take account of the rolling over of unspent appropriation and Commonwealth funding from 2014-15.

A reconciliation of the 2015-16 Capital Works Program is shown in Table 1 below.

Table 1 – 2015-16 Capital Works Program Available Funding $ million 2015-16 Original Budget Appropriation(a) 699

Net Program adjustments and rollovers 49

Total Funds Available for Expenditure 2015-16 748

(a) See 2015-16 Budget Paper 3, page 164.

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2.2 2015-16 Program Expenditure as at 30 September 2015

Actual expenditure for the September quarter 2015 was $98.6 million comprising:

New Works expenditure of $10.3 million; and

Works in Progress expenditure of $88.3 million.

The September quarter expenditure accounted for 13.2 per cent of total funds available for capital works in 2015-16, compared to the 15 per cent of total funds available (or $94 million) recorded for 2014-15.

Historically, the majority of capital works expenditure occurs in the second half of the financial year and spending in the first two quarters reflects primarily Works in Progress from the previous year. This is because delivery of the New Works component of the Program cannot commence until passing of the Budget in August. A lead time is also required for preliminary planning, approvals, consultations, procurement and tendering activities for new capital works.

A breakdown of expenditure by agency is provided at Attachment A . Project financial data is provided at Attachment B.

Table 2 – Capital Works Program Expenditure – as at 30 September 2015

Agency

2015-16 Total Funds for

Expenditure$’000

YTD September

2015-16 Expenditure

$’000

Percentage Spend YTD September

Against Total Funds

Available

Canberra Institute of Technology 7,465 717 9.6

Capital Metro 16,137 3,979 24.7Chief Minister, Treasury and Economic Development Directorate 274,904 9,639 3.5

Community Services Directorate 2,843 0 0

Cultural Facilities Corporation 3,209 191 6.0

Education and Training Directorate 54,117 10,752 19.9

Environment and Planning Directorate 2,353 167 7.1

Health Directorate 153,105 31,774 20.8

Housing ACT 6,421 1,526 23.8

Justice and Community Safety Directorate 71,445 9,678 13.5

Office of the Legislative Assembly 6,356 275 4.3

Territory and Municipal Services Directorate 149,543 29,893 20.0

TOTAL 747,898 98,591 13.2

2.2.1 2015-16 Capital Upgrades Program

Capital upgrades are essential works that extend the useful life or improve the service delivery capacity for existing assets and do not include expenditure for repairs and maintenance.

September year-to-date expenditure on the 2015-16 Capital Upgrades Program was $4.7 million, equating to 8.4 per cent of the available budget of $55.6 million.

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Table 3 – Capital Upgrades Program Expenditure – as at 30 September 2015

Agency Capital Upgrades Year-to-Date September 2015

2015-16 Budget$’000

2015-16 YTD

September Expenditure

$’000

Percentage Spend YTD September

Office of the Legislative Assembly 708 47 6.6Health 4,844 93 1.9Chief Minister, Treasury and Economic Development 8,983 391 4.4Justice and Community Safety 1,350 41 2.4Environment and Planning 143 0 0Education and Training 14,215 1,385 9.7Territory and Municipal Services 21,708 2,253 10.3Canberra Institute of Technology 2,515 330 13.1Cultural Facilities Corporation 379 137 36.1

TOTAL 55,554 4,677 8.4

Significant upgrade works being delivered in 2015-16 include:

public school infrastructure and safety improvements;

upgrades to youth, child care and community facilities;

improvements to sports facilities including upgrades to ovals, pavilions, pools, toilet blocks and flood lighting systems;

building upgrades and facility improvements of health and hospitals infrastructure;

road safety measures including rehabilitation, improvements and bridge strengthening;

footpath and cycling improvements;

upgrades and modifications to public transport infrastructure;

improvements to playgrounds and facilities in open spaces; and

improvements to fire and ambulance stations and other emergency services facilities.

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2.2.2 2015-16 Urban Renewal Program

The Urban Renewal Program provides for works that improve the amenity of our growing city. The current capital expenditure on the Urban Renewal Program is summarised in Table 4.

Table 4 – Urban Renewal Program – as at 30 September 2015

Project classificationUrban Renewal Program as at

September 20152015-16 Total

available Funds for

Expenditure$’000

2015-16 YTD

September Expenditure

$’000

Percentage spend

against Budget

New Works Projects 114,142 478 0.4Work In Progress 118,601 1,108 0.9

TOTAL 232,743 1,586 0.7

The major projects to be delivered in 2015-16 as part of the Urban Renewal Program include Public Housing Renewal, walking and cycling infrastructure, playground safety measures and the local shopping centres upgrade program.

2.3 Historical expenditure trends

Figure 1 below shows expenditure trends in the Capital Works Program for the three years to 2015-16.

Figure 1 – Three Year Comparison of Capital Works Program Expenditure Trends

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2013-14

2014-15

2015-16$'00

0

2013-14 Total Exp - $510m(Budget $697m)

2014-15 Total Exp- $420m(Budget $623m)

2015-16 Total Funds Available $748m (Sept YTD Exp $98.6m)

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2.4 Non-Financial (Milestone) Outcomes

Delivery of Capital Works Program is also measured against non-financial indicators and reported against key milestones for all projects.

2.4.1 Functional Briefs

The lodgement of functional briefs and development of final sketch plans are key indicators of progress made during the project initiation phase of the new works program. Fifty two per cent of the functional briefs required for the delivery of the 2015-16 New Capital Works Program were completed as at 30 September 2015.

Significant new projects that required and have completed functional briefs in the September quarter included:

Better Roads for Gungahlin – Gundaroo Drive duplication – Stage 1;

Better Roads for Tuggeranong – Ashley Drive duplication – Stage 2;

Public transport infrastructure upgrades (including DDA bus stop upgrades);

Better Roads for Gungahlin – Enhanced Town Centre road network;

Schools for the Future – Modernising Belconnen High;

Urban Renewal Program – Civic and Braddon public realm improvements; and

Urban Renewal Program – Molonglo 3 infrastructure.

2.4.2 Final Sketch Plans

Six per cent of the required final sketch plans for the 2015-16 New Capital Works Program have been completed as at 30 September 2015.

Significant new projects that have completed final sketch plans in the September quarter include:

Urban Renewal Program – Better Public Housing – Allawah Court; and

Urban Renewal Program – Better Public Housing – Red Hill housing precinct.

The sketch plans for the above projects are for the construction of properties to replace the existing ones.

2.4.3 Construction /Delivery Commenced

Construction /Delivery had commenced on 18 per cent of the 2015-16 New Capital Works Program as at 30 September 2015.

Significant projects with contracts for construction/delivery to commence in the September quarter include:

Urban Renewal Program – Better Public Housing – Karuah;

Urban Renewal Program – Better Public Housing – Red Hill housing precinct;

Throsby – Access road and western intersection;

Dickson Group Centre Intersections – Upgrade; and

Mugga 2 Quarry – Remediation.

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2.5 Delivery of Infrastructure for the ACT Community

2.5.1 Land Release Program

The four-year Indicative Land Release Program is an enabler of the Government’s social and economic strategies for the community. These strategies seek to support the needs of a growing population, changing household demographics and an expanding economy. The Land Release Program contributes to financial and environmental objectives by seeking to:

promote the economic and social development of the Territory;

meet the demand for land in the Territory;

establish an appropriate inventory of serviced land;

facilitate the provision of affordable housing; and

achieve satisfactory returns from the sale of unleased Territory land.

The ACT Government Indicative Land Release Program includes a sale target of 13,500 dwelling sites between 2015-16 and 2017-18.

Significant capital works in the 2015-16 Budget to support the Government’s Land Release Program include:

arterial and access road infrastructure to provide access for the development of Denman Prospect in Molonglo and the new residential suburb of Throsby in Gungahlin;

Isabella Weir Spillway Upgrades to provide flood protection for development on the shores of Lake Tuggeranong;

Cravens Creek Water Quality Control Pond;

Molonglo 2 Sewer and Pedestrian Bridge over Molonglo River;

Molonglo 2 – Uriarra Road Upgrade; and

a link road between Majura Parkway and Majura Road.

2.5.2 Public Housing

The 2015-16 ACT Budget includes an initial commitment of $159.2 million over the next two years for the delivery of 352 public housing properties to replace Owen Flats (Lyneham), Allawah Court (Braddon), the Red Hill Housing Precinct (Red Hill) and Karuah (Dickson). The 352 replacement public housing properties will be constructed on sites identified in Monash, Chisholm, Nicholls, Coombs, Moncrieff and Amaroo.

Construction has commenced in Monash and Chisholm. Development Applications have been submitted for all sites and tenders have been awarded for the sites in Monash, Chisholm, Coombs, Moncrieff and Amaroo.

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These projects are part of the first phase of the Government’s public housing renewal program, which aims to improve outcomes for public housing tenants in the ACT and support the renewal of Canberra’s urban areas.

The new public housing will replace older multi-unit public housing properties on Northbourne Avenue and in other key locations across Canberra. These sites, once vacated, will be sold for redevelopment.

Work is underway for the demolition of the Currong Apartments in Braddon to prepare the site for sale. This property has been vacant since late 2014 and will be one of the first sites to be sold by the Land Development Agency as part of this program.

The expansion of Public Housing Energy Efficiency Program also saw 119 properties being upgraded in the September quarter 2015. There were 1,110 properties upgraded in the 2014-15 financial year. The upgrades focus on increasing energy and water efficiency through retrofitting existing dwellings with new energy efficient hot water and heating systems.

Common Ground Supportive Housing in Gungahlin

2.5.3 Delivery of Transport Infrastructure

Significant upgrades to transport infrastructure across the Territory are planned for delivery in 2015-16, including:

the design, construction and duplication of major roads and intersections to provide access to residential developments and reduce traffic congestion;

the design and construction of new bus stations and upgrades of existing bus stops; and

improvement of walking and cycling infrastructure to promote active travel.

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A number of milestones in significant projects were achieved in the September quarter 2015, including:

Transport for Canberra – Canberra Avenue Bus Priority: The project reached financial completion;

William Slim/Barton Highway Roundabout Signalisation: Construction contracts were signed;

ACTION – Replace Underground Storage Tanks: The Development Application was approved;

Constitution Avenue Upgrade: Greater than 50 per cent of construction was achieved;

Transport for Canberra – City Path Lighting: This project was completed; and

Better Roads for Gungahlin – Horse Park Drive duplication: The Development Application was approved.

Constitution Avenue

2.5.4 Community Safety, Corrections and Justice

Progress against key capital projects that support community safety and justice services as at 30 September 2015 includes:

Strengthening Emergency Services – Greenway Ambulance Station: The Development Application was approved;

New ACT Law Courts Facilities: A private partner has been selected to design, construct, finance and maintain the facility;

Emergency Services Agency Station Upgrade and Relocation – Aranda Station: All services have been relocated and internal joinery and finishing are underway. This is a co-located district ambulance and fire station that replaces the Belconnen fire and ambulance station;

Alexander Maconochie Centre Additional Facilities: The special care centre has been completed and is operational. This project will provide greater security measures and improved accommodation facilities; and

ESA – Station Relocation and Upgrade – Phase 2 Due Diligence: Phase 2 works have been completed.

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Artist’s impression of the new ACT Law Courts Facilities

2.5.5 Providing Education for All

Major new works and upgrades to education and childcare facilities across the Territory continued. Some of the key progress during the September quarter 2015 includes:

Belconnen High Modernisation – Stage 1: Works including demolition of a classroom block, asbestos removal, refurbishment and upgrade of several learning areas have been completed;

Belconnen Regional Trade Skills Centre: Construction works were completed at Hawker College, Lake Ginninderra College, Canberra High School and Kingsford Smith School. Works at Melba Copland and University of Canberra Kaleen High School commenced in August 2015;

Hazardous Material Removal Program – Stage 3: Asbestos removal works commenced at Stromlo High School and Erindale College;

Schools for the Future – North Gungahlin and Molonglo: The Request for Expression of Interest from contractors is expected to be issued by December 2015. This project is for the construction of a new P-6 School at North Gungahlin to open in January 2019;

COAG Universal Access to Preschools – Stage 1 Expansion Works: This Project has been completed;

Tuggeranong Introductory English Centre: This project has been completed;

Charles Weston School – Coombs: Construction of the school has progressed ahead of schedule. The school will open for the 2016 school year; and

The School Capital Upgrades project provided for classroom refurbishments and infrastructure upgrades of schools across Canberra.

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Charles Weston School - Coombs

2.5.6 Improved Recreational, Lifestyle and Cultural Opportunities

The key projects in this area seek to improve community recreational facilities, lifestyle opportunities and cultural facilities. They include works on sporting facilities, parks, urban spaces and cultural institutions across Canberra. Some of the key progress during the September quarter 2015 includes:

Pools Improvement Program 2015-16: The refurbishment works at the Lakeside Leisure Centre have been completed and the boiler at the Dickson Pool has been replaced in readiness for the summer pool season;

Lyneham Sports Precinct - Central Amenities (Design): Preliminary sketch plans and the initial quantity survey has been completed;

Gorman House Multi-Art Hub: Internal refurbishment works have been completed;

Megalo Print Studio Relocation: This project has been completed; and

Town and District Park Upgrades achieved completion.

2.5.7 The Environment and Waste Management

Works continued on a number of environmental, sustainability and waste management projects during 2015-16. Some of the key progress during the September quarter 2015 includes:

East Lake Sustainable Urban Renewal: The project is nearing completion;

Molonglo Valley — Finalisation of Stage 2 and Commencement of Stage 3 Planning (Feasibility): The draft concept plan for Stage 2, including the Molonglo Commercial Centre, has been completed and preparation for planning and design framework for Stage 3 is underway;

City Plan Implementation: A consultant has been appointed and work is underway; and

Infill Development Infrastructure Studies (Feasibility): This work will be structured to support the upcoming Master Plan Program.

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2.5.8 Health

Works continued on the redevelopment and reconfiguration of Canberra’s hospitals and healthcare facilities to ensure the availability and viability of quality health care. Some of the key progress during the September quarter 2015 includes:

Canberra Hospital – More beds: Renal and Dialysis Design Brief and Design Concepts are being developed;

Calvary Public Hospital – Operating theatre upgrade and upgrade of medical imaging equipment: Initial planning with internal stakeholders is continuing;

Calvary Public Hospital – Car park: A topping out ceremony, where the last beam is placed atop a structure during its construction, was held on 30 September 2015 with Minister Corbell. The project is progressing well;

Continuity of Health Services Plan – Essential Infrastructure: Service upgrades to the southern section of Hospital Road continue with the removal of the existing retaining wall and installation of replacement stormwater; and

Secure Mental Health Unit - Stage 2: Construction works progressed including ground services, detailed civil excavation and the ground and first floor slabs.

Calvary Hospital Car Park

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Documents

2015-16 Capital Works Program September Quarter 2015 ... Web view2015-16 Capital Works Program September Quarter 2015 Progress Report (incorporating June 2014-15)