COURTS BUNDLE PPP PROJECT MARKET LAUNCH DAY Kilkenny Courthouse, 13 - - PowerPoint PPT Presentation

COURTS BUNDLE PPP PROJECT

MARKET LAUNCH DAY Kilkenny Courthouse, 13th May 2014

WELCOME AND OVERVIEW

BRENDAN RYAN CHIEF EXECUTIVE OFFICER, COURTS SERVICE

 Introduction & Opening address

• Introduction by Mr. Brendan Ryan, CEO of the Courts Service
• Address by the Hon. Mrs. Justice Susan Denham, Chief Justice

 Courts Bundle PPP Project Overview

• Paul Burns, Head of Infrastructure Services Directorate, Courts Service

 Courts PPP Bundle Procurement Overview

• Damian Duffy, Senior Project Manager, NDFA
• Philip Ryan, Senior Financial Analyst, NDFA

Overview

COURTS BUNDLE PPP PROJECT INTRODUCTION

BRENDAN RYAN CHIEF EXECUTIVE OFFICER, COURTS SERVICE

COURTS BUNDLE PPP PROJECT ADDRESS BY

THE HON. MRS. JUSTICE SUSAN DENHAM, CHIEF JUSTICE

COURTS BUNDLE PPP PROJECT PROJECT AND SITE OVERVIEW

PAUL BURNS

HEAD OF INFRASTRUCTURE SERVICES DIRECTORATE, COURTS SERVICE

 Department of Justice & Equality:

• Sanctioning Authority

 Courts Service:

• Sponsoring Authority and End User

 NDFA:

• Contracting Authority and State’s Financial Advisor

The Roles of the Parties

 Courts Service Act 1998:

• Courts Service established November 1999

 Courts Service mission is:

• “To manage the courts, support the judiciary and provide a high-

quality and professional service to all users of the courts”

 Courts Service functions are:

• to manage the courts
• to provide support services for the judges
• to provide information on the courts system to the public
• to provide, manage and maintain court buildings
• to provide facilities for users of the courts

Courts Service

We want our court buildings to support the administration of justice, to allow us to provide quality services to court users and to present an appropriate image of the courts to the public

 Since 1999 significant investment has been made in providing new and refurbished court facilities: one of the most recent was Kilkenny  These have been procured both through traditional capital procurement and by way of Public Private Partnership in the case of the Criminal Courts of Justice in Dublin  A major rationalisation of smaller venues has also taken place  The availability of appropriate facilities for all court users with separate circulation routes is an important feature of courthouse design and operation  The designs produced by the Office of Public Works for the 7 projects address these requirements  In the 7 locations covered by the Courts Bundle, the existing court facilities are poor and in need of significant improvement, in both capacity and in the availability and standard of facilities

Courts Service Building Programme

SITE OVERVIEW

*Areas are indicative

Location Courthouse Buildings Total * Area (m2)

Letterkenny,

• Co. Donegal

A new courthouse to accommodate four courtrooms and associated facilities to be constructed on a town centre site close to the existing courthouse 5,027

Drogheda, Co Louth

A new courthouse consisting of two courtrooms and associated facilities to be constructed on a landmark town centre site adjacent to the river Boyne 1,354

Mullingar, Co. Westmeath

The refurbishment and extension of the existing historic courthouse in Mullingar to accommodate three courtrooms, improved custody facilities, court offices and associated facilities. 3,320

Limerick City

A new criminal courthouse to be built on a site adjacent to Limerick Prison, to include six courtrooms, custody facilities, court offices and associated facilities 7,609

Project Scope

*Areas are indicative

Project Scope cont’d

Location Courthouse Buildings Total * Area (m2)

Wexford Town The refurbishment and extension of an existing landmark building to provide a new courthouse for Wexford Town consisting of four courtrooms, custody facilities, court offices and associated facilities 4,680 Waterford City The refurbishment and extension of the existing historic courthouse in Waterford to accommodate six courtrooms, improved custody facilities, court offices and associated facilities. 6,392 Cork City The refurbishment and extension of the existing landmark courthouse building at Anglesea Street to accommodate six courtrooms, improved custody facilities, court offices, the regional office and associated facilities. 8,490 Totals 36,872

SITE DRAWINGS AND PERSPECTIVES

DESCRIPTION NEW COURTHOUSE TO ACCOMMODATE FOUR COURTROOMS AND ASSOCIATED FACILITIES TO BE CONSTRUCTED ON A TOWN CENTRE SITE CLOSE TO THE EXISTING COURTHOUSE. AREA 5,027M2

LETTERKENNY COURTHOUSE

High Road, Letterkenny, Co. Donegal

DESCRIPTION NEW COURTHOUSE CONSISTING OF TWO COURTROOMS AND ASSOCIATED FACILITIES TO BE CONSTRUCTED ON A LANDMARK TOWN CENTRE SITE ADJACENT TO THE RIVER BOYNE. AREA 1,354M2

DROGHEDA COURTHOUSE

Wellington Quay, Drogheda, Co. Louth

DESCRIPTION NEW COURTHOUSE TO ACCOMMODATE THREE COURTROOMS AND ASSOCIATED FACILITIES. THE DEVELOPMENT WILL CONSIST OF AN EXTENSION TO THE REAR AND SIDES OF THE EXISTING COURTHOUSE, AND ADAPTATION OF THE EXISTING BUILDING. AREA c3,320 sq.m.

MULLINGAR COURTHOUSE

Mount Street, Mullingar, Co Westmeath

DESCRIPTION NEW CRIMINAL COURTHOUSE TO BE BUILT ON A SITE ADJACENT TO LIMERICK PRISON, TO INCLUDE SIX COURTROOMS, CUSTODY FACILITIES, COURT OFFICES AND ASSOCIATED FACILITIES. AREA 7,609M2 (INCL. 259M2 REFURBISHMENT)

LIMERICK COURTHOUSE

Mulgrave Street, Limerick City

DESCRIPTION NEW COURTHOUSE TO ACCOMMODATE FOUR COURTROOMS AND ASSOCIATED FACILITIES TO BE CONSTRUCTED ON THE SITE OF THE EXISTING MUNICIPAL OFFICES AT WYGRAM PLACE, AND ADAPTATION OF THE EXISTING MUNICIPAL OFFICES BUILDING. AREA c4,680 sq.m.

WEXFORD COURTHOUSE

Wygram Place, Davitt Road North, Wexford, Co. Wexford.

DESCRIPTION REFURBISHMENT AND EXTENSION OF THE EXISTING HISTORIC COURTHOUSE IN WATERFORD TO ACCOMMODATE SIX COURTROOMS, IMPROVED CUSTODY FACILITIES, COURT OFFICES AND ASSOCIATED FACILITIES. AREA 6,392M2 (INCL. 1,798M2 REFURBISHMENT)

WATERFORD COURTHOUSE

Catherine Street, Waterford

DESCRIPTION REFURBISHMENT AND EXTENSION OF THE EXISTING LANDMARK COURTHOUSE BUILDING AT ANGLESEA STREET TO ACCOMMODATE SIX COURTROOMS, IMPROVED CUSTODY FACILITIES, COURT OFFICES, THE REGIONAL OFFICE AND ASSOCIATED FACILITIES. AREA 8,490M2 (INCL. 1,556M2 REFURBISHMENT)

CORK COURTHOUSE

Anglesea Street, Cork City

 Planning

• The planning scheme for the Project in accordance with Part 9 of the Planning and

Development Regulations 2001 to 2013.

• Part 9 planning approvals have been obtained for all sites.

 Licence to occupy site

• All sites to be vacated by Authority prior to contract award and licence provided in

accordance with contract for PPP Co. to execute contract.

 Design Intent

• Drawings to be included as appendix to Schedule 3 (Works Requirements)
• Outlines Courts Service requirements in terms of inter alia layouts and adjacencies

Project Details

PROCUREMENT OVERVIEW

DAMIAN DUFFY SENIOR PROJECT MANAGER, NDFA

 NDFA Act 2002:

• NDFA established January 2003
• Acts as the State’s Financial Adviser for all public investment projects greater than €20 million in

value (PPP & Non PPP)

 NDFA (Amendment) Act 2007:

• Role expanded to be the procurement & delivery authority for PPP Projects, excluding local

authority and transport PPPs

• Currently progressing the procurement of some €2.25 billion worth of PPP projects within the

education, justice and health sectors.

• NDFA manages the process through procurement and construction to Service Commencement

(“turnkey”)



NTMA (Amendment) Bill 2014:

• Establishment of ISIF / Statutory basis for NewEra / Streamline NTMA Corporate Structures

National Development Finance Agency

Status of PPP Stimulus Programme

Building Project Tender notice published Expressions of Interest received Tenders Schools Bundle 4    Schools Bundle 5   ITN Q2 2014 GDA-DIT PPP   ITN Issued Primary Health Care   ITN Q2 2014 Courts Bundle PPP  12 June 2014 ITN Q3 2014 Garda (Police) PPP Withdrawn: to progress with direct Exchequer funding

 The Authority’s Project Team for the Project consists of:



Project & Procurement Management NDFA



Financial Advisor NDFA



Legal Advisor McCann FitzGerald



Insurance Advisor Willis



Technical Advisors

• Architect/Planner

Office of Public Works

• Civil & Structural Engineering

RPS

• Mechanical, Electrical & ICT

Office of Public Works

• PSDP

Office of Public Works

• Quantity Surveyor

Cyril Sweett



End user representation Courts Service

Authority Project Team

 Pre-Procurement phase – Courts Service

• Suitability for PPP procurement reviews
• Outline Business Case
• Policy issues and land title due diligence
• Design Intent in development
• Part 9 planning obtained
• Output Specification preparation
• Public Sector Benchmark (incl. Affordability Test)
• Site Surveys e.g. Geotechnical /Topographical /Archaeological

Procurement Process and Programme

 Procurement phase – National Development Finance Agency

• Procurement in accordance with Directive 2004/18/EC and S.I. 329 2006
• Courts Bundle PPP Project is being procured by means of the Negotiated procedure
• Prior Information Notice published in OJEU on 8th April 2014
• Pre-Qualification process commenced with Contract Notice publication in the OJEU on

17th April 2014 (closing date for submissions is 12th June 2014)

• Invitation to Negotiate (ITN) and Project Agreement documentation all well advanced.
• Procurement process, ITN and Project Agreement will follow a similar format to that of

recent Projects i.e. Schools Bundle 3 PPP and also that being used on the more recent Stimulus Package PPPs (SB4&5 / Grangegorman-DIT).

• Social and employment clauses to be included / Initiatives for SMEs i.e. Meet-the-Buyer
• BIM will be a requirement for Project delivery but modelling will not be required during

the Tender phase.

Procurement Process and Programme

 Summary of anticipated procurement procedure and indicative timescales:

Stage 1: Pre-Qualification of 3 Candidates (17 weeks): Stage 2: Consultation Period (c. 22-24 weeks):

• Issue ITN (c. September 2014)
• ITN stage submissions & consultation meetings (Technical and Legal/Financial)
• Submit Tenders (c. March 2015)

Stage 3: Tender Evaluation and PT Period (target 6 months)

• Tender evaluation and Preferred Tenderer appointment
• Secure Funding
• Proceed to Financial Close and Contract Award (Q4 2015)
• Overall duration target – 20 months

Procurement Process and Programme



Part 9 planning in place for each site, tenderers to adhere to same



Design Intent provided outlining layouts and adjacencies



Use of self-declarations in prequalification submissions



Reduced level of detail required to be submitted at Tender

• E.g. Issue common elements once



Tender Cost Reimbursement provision

Policy decision agreed by Government in December 2012

• Reimbursement of part-tender costs for all tenderers in event of project cancellation
• Reimbursement of part-tender costs to unsuccessful tenderers (with compliant tender)

Initiatives to reduce Tender Cost

OVERVIEW OF DEAL STRUCTURE AND FUNDING

PHILIP RYAN SENIOR FINANCIAL ANALYST, NDFA

 25 year Design Build Finance & Maintain PPP Contract

• Standard risk allocation

 PPP Co. remunerated by a monthly Unitary Charge paid by the Courts Service  Construction contract value estimated at circa Ex VAT €120m  Construction and Availability risk passed to PPP Co.

• No payment of unitary charge until construction is completed and services commence
• Availability Based deductions
• Service Performance deductions
• Exception of Latent Defects on existing structures

 Change in Law to reflect PF2 developments

Overview of Deal Structure



25 year service period, expected to include all aspects of

• Caretaking & Porterage
• Cleaning
• Building & asset maintenance
• Waste Management
• Pest Control
• S

ecurity (passive)

• Energy management
• Grounds maintenance
• Life cycle replacement (Fixtures, Fittings, Building)
• IT cabling and infrastructure

Facilities Management

 CEB / ISIF funding possibilities

• Up to 50% of debt funding
• Subject to final approval

 Authority term sheet envisaged at Tender evaluation stage  Debt funding finalised in PT stage  Authority open to bank debt and institutional funding solutions

• deliverability and value for money key considerations

 No government equity participation envisaged

Funding

 Concession period of 25 years from Service Commencement Date  Method of Payment

• Unitary Charge
• Paid monthly

 Construction and Availability risk passed to PPP Co.

• No payment of unitary charge until construction is completed and services commence
• Availability Based deductions
• Service Performance deductions

Payment Mechanism

 Part 9 planning in place  Design Intent setting out Authority requirement  Tender cost reimbursement arrangements  Potential funding solutions available  Contract Notice issued 17 April 2014 – Submissions due 12 June 2014  Queries to QueryPPPCourtsPQQ@ntma.ie



NDFA Website > Tender Competitions : Project Information and Market Updates

Closing Comments

Q & A