6.4 Capital works

Introduction

This chapter provides a summary of the Government’s capital works program for 1999-2000. The chapter covers both new works for the budget and non budget sectors, and includes works-in-progress to be carried over from 1998-99 and previous year’s programs.

Details of each agency’s capital works program for 1999-2000 are included in asset management plans incorporated into Ownership Agreements presented with the Budget. The plans include information on individual projects by value of works, expected completion dates and financing requirements for 1999-2000 and future years.

Information on each program is also provided, by agency, in 1999-2000 Budget Paper No. 4.

Key Priorities for 1999-2000

The 1999-2000 program places particular emphasis on information technology, emergency services, new roads and facilities for Gungahlin and improvements to Canberra’s urban environment.

Improvements to Canberra’s urban environment are incorporated into an initiative to be managed by the Department of Urban Services, called "Streetsmart." Additional funding of $1.3 m will be provided to ‘spruce up the city’ and its urban appearance as Canberra prepares to host Olympic Football in 2000, and Centenary of Federation celebrations and the Commonwealth Heads of Government Meeting in 2001.

Funding provides for:

• an additional $0.5m for general infrastructure improvements across Canberra, including the upgrading or replacement of road medians, kerbing and guttering, guardrails, street furniture etc;
• an extra $0.450m for new linemarking and replacement of roadsigns;
• an additional $0.250m for footpath repairs/maintenance (total $0.5m), and
• an additional $0.1m to boost weed control measures across the Territory (total $0.3m).

The financing requirements for the "Streetsmart" initiative and other key priorities in the 1999-2000 program are provided below:

Information Technology

• IT cabling and end to end management for major projects
• across government agencies and services as part of the 1999
• modernisation program $10.000 m

Health

• Refurbishment of Building 7 (drug and alcohol services) at
• The Canberra Hospital $1.558 m
• Modifications to Day Surgery Unit at The Canberra Hospital $0.850 m
• Design and documentation for Stage 2 of the refurbishment
• of facilities at Calvary Hospital $0.500 m
• Refurbishment of Tuggeranong Health Centre $0.156 m

Education

• Refurbishment/improvements to schools/colleges $2.730 m
• Upgrading of specialist science and technology areas in schools $1.375 m
• Improvements to preschools $0.510 m

Youth and Community Services

• Construction of Lanyon Neighbourhood and Youth Centre $0.390 m
• New combined youth and community centre for Gungahlin $0.500 m

Corrective Services

• Construction of prison (private financing) $12.000 m

Police and Emergency Services

• Police and Emergency Services Infrastructure Improvement
• Program - Woden $1.500 m
• Refurbishment of fire and ambulance stations $0.200 m

Revitalisation of Civic and neighbourhood shopping centres

• Upgrading of neighbourhood precincts at Hall, Manuka, Kingston,
• Kippax, Weston, Dickson and Charnwood $2.115 m
• Improvements to Garema Place $0.200 m
• Beautification of Civic Square $0.700 m
• Refurbishment of East Row $0.500 m

Roads, footpaths, cycleways, signs and streetscapes

• Rehabilitation of the Monaro Highway, north of Williamsdale $2.300 m
• Upgrading of Erindale Drive/Drakeford Drive intersection $0.500 m
• Repair / improvements to footpaths across Canberra $0.500 m
• Infrastructure improvements (guardrails, median strips,
• kerbside guttering, street furniture etc) $0.500 m
• Linemarking and improved signposting of roads $0.450 m
• Construction of cycleways in Tuggeranong, East Basin and Gungahlin $0.660 m
• Continuation of playground safety program $0.500 m

Environment

• Mitchell Resource Recovery/Transfer Station (private financing) $1.500 m
• Refurbishment of Black Mountain Peninsula $0.200 m
• Exotic weed control $0.300 m
• New wildlife enclosures at Tidbinbilla Nature Reserve $0.200 m

Sport

• Construction of new indoor pool complex in Belconnen area $1.200 m
• Construction of new mountain bike trail course at Blue Range $0.360 m
• Upgrading of Lyneham Hockey Centre (capital grant) $1.200 m
• Improvements to existing swimming pools $0.300 m
• Upgrading of sports grounds $0.500 m
• Refurbishment of ACT Sports House $0.200 m

Canberra Institute of Technology

• Improvements to various campuses across Canberra $1.740 m

The Arts

• Public art works $0.300 m
• Modifications to Canberra Theatre $0.154 m
• Fitout of Ainslie public school $0.167 m
• Site feasibility study for Canberra Centre for Contemporary Glass $0.030 m

Gungahlin

• Construction of Southern Boulevard (budget funded loan to GDA) $3.463 m
• Extension of Gundaroo Drive from Anthony Rolfe Avenue to
• Gungahlin Place $1.000 m
• Duplication of Gungahlin Drive between Kosciusko and Wells
• Station Road $1.800 m
• Bus stops, cycleway on Gundaroo Drive $0.385 m
• Stage 2 upgrading of the Gold Creek tourist area - O’Hanlon Place $0.700 m
• Initial design and construction of combined library, youth and
• community centre at Palmerston $0.500 m (already included within Youth & Community Services)
• Stage 2 of infrastructure for Yerrabi Pond $0.400 m

1998-99 Budget Funded Capital Works Outcome

The Budget for funded capital works projects in 1998-99 was $86.959m. Table 6.4.1 provides a summary of expected outcomes for each agency, compared to budget allocations.

Table 6.4.1
Summary of 1998-99 Budget Funded Capital Works Expenditure

The reduction in funding provided to the Department of Health and Community Care ($0.5m) represents expenditure incurred in 1998-99, which is no longer required to be appropriated. Increased funding provided to the Department of Urban Services represents the transfer of two heritage projects to the department.

Capital expenditure for budget funded projects for 1998-99 is expected to be $5.628m below funding to be provided. Reduced expenditure is due to variations in the following projects:

• Erindale Centre - Glazing upgrade ($0.681m)
• Building access improvements ($0.030m)
• Upgrade Specialist Area - Science ($0.452m)
• Upgrade Specialist Area - Technology ($0.170m)
• ACT Prison, forward design ($0.4m)
• Gungahlin Joint Emergency Services Complex ($0.050m)
• ATSIC Cultural Centre ($0.345m)
• Upgrade of Football Park, Phillip and Manuka Oval ($3.5m)

1999-2000 Capital Works

Assessment of the 1999-2000 program

Agencies were required to prepare a business case for all projects with a value greater than $0.250m. Projects under $0.250m were considered with other minor new works proposals.

Proposals were assessed against the following criteria:

• business need, qualitative and other factors (such as OH&S);
• funding and resource implications;
• link to whole of government strategies, outcomes and agency objectives;
• adequate consideration of business solutions, including non-asset solutions;
• economic viability, social and environmental acceptability of preferred solutions;
• adequate risk analysis and adoption of appropriate risk management strategies; and
• practical and appropriate funding and implementation plans.

Some projects may be included in the draft capital works program as preliminary projects only. These projects will only be included in the final program once full business cases and justification is received and properly reviewed.

Budget Funded New Works Program

The value of budget funded new works included in the program for 1999-2000 is $87.817m, with a financing requirement in 1999-2000 of $60.785m. The key components of the program are:

Table 6.4.2
Summary of Budget Funded New Works Program - 1999-2000

Off Budget New Works Program

The value of off budget new works for 1999-2000 is $144.127m, with a financing requirement in 1999-2000 of $90.088m. Off budget projects include the privately financed ACT Prison, with a capital value of $32m and the Mitchell Resource Recovery and Waste Transfer Station - Stage 2, $4m, and projects to be financed by ACT Housing and ACTEW.

Table 6.4.3
Summary of Off Budget New Works Program - 1999-2000

Capital works expenditure by ACTEW includes $16m on the TransAct project. This project is a fibre-optic network that aims to provide telephone, pay TV, advanced video services and high speed Internet services to the ACT. $10m has been deferred from 1998-99 as the Aranda pilot project is being finalised. The ACTEW capital works program also includes an infrastructure budget of $49.9m and expenditure on corporate assets such as property, IT and telecommunications equipment of $8.7m.

The capital program to be conducted by ACT Housing includes refurbishments and improvements ($13m), stock restructuring ($3m), multi-unit projects ($3.8m), older persons accommodation ($6.3m), disability housing and modifications ($0.5m), crisis accommodation program ($0.7m), planning, feasibility studies, program management and works in progress from the 1998-99 program.

Works in Progress

The financing requirements for works in progress in the 1999-2000 Budget is $28.981m; $9.049m relating to the 1997-98 capital works program and $19.932m from the 1998-99 program.

The financing requirements of the 1999-2000 program, including works in progress, is summarised in the following table.

Table 6.4.4
Summary of Financing of the 1999-2000 Capital Works Program

Table 6.4.5
Summary of Public Sector Capital Works by Function - 1999-2000

1999-2000 Construction Projects

Table 6.4.6 outlines the full program of 1999-2000 construction projects.

Table 6.4.6
Summary of 1999-2000 Construction Projects

Table 6.4.6
Summary of 1999-2000 Construction Projects (Continued)

1999-2000 Forward Design

The forward design component of the new works program provides financing for design of projects prior to commitment to construction.

Table 6.4.7 outlines the full program of 1999-2000 forward design.

Table 6.4.7
Summary of 1999-2000 Forward Design Proposals

1999-2000 Feasibility Studies

Feasibility studies recognise the longer lead time involved in major construction activities, and provide agencies with capacity to undertake preliminary feasibility and policy development work associated with larger and complex proposals. They also set a framework for a more complete business case assessment of the viability of options and alternatives, including linkages to the Government’s service delivery objectives.

Table 6.4.8 outlines the feasibility studies to be undertaken in 1999-2000.

Table 6.4.8
Summary of 1999-2000 Feasibility Studies

1999-2000 Grants

The inclusion of grants within the capital works program recognises the nature of the payment.

Table 6.4.9 outlines capital grant payments to be made to outside organisations during 1999-2000.

Table 6.4.9
Summary of 1999-2000 Capital Grant Payments

1999-2000 Minor New Works

Table 6.4.10 outlines minor new works to be undertaken during 1999-2000.

Table 6.4.10
Summary of 1999-2000 Minor New Works

Table 6.4.10
Summary of 1999-2000 Minor New Works (Continued)

Table 6.4.10
Summary of 1999-2000 Minor New Works (Continued)