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Highway Maintenance PFI Project Presentation to Client and - - PowerPoint PPT Presentation
Highway Maintenance PFI Project Presentation to Client and - - PowerPoint PPT Presentation
Highway Maintenance PFI Project Presentation to Client and Partnership Panel 10 th Sept 2008 Cllr Barbara Reid Executive Member for Environment Suresh Kamath Director, SMPP Delivering a Step Change in the Whole Street Environment 1
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What is the Private Finance Initiative (PFI)?
Long term service contract Provision of capital assets and associated services The integration of Design Build Fund Operate Single “unitary” payment which covers investment and services Performance related “payment mechanism” Allocation of risk Output specification “Off balance sheet” treatment Central government support through “PFI Credits”
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Background to Project
Committed to Environmental Sustainability Highways Improvements essential for our community Innovative culture for service delivery Cross-Party support for PFI Additional funding committed
£2.5m every year for the PFI
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Background to Project
Typical urban network; no longer fit for purpose Huge maintenance backlog (£78m)
Justified by comprehensive, up to date data
Trends getting worse against National/London benchmarks Gateway to London - bordering Heathrow and Motorway network Community demands better street environment
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Key Points
Network: Borough Roads, all classes (excludes TfL Road Network) Length: 432 km road carriageway and 762 km footway Duration of contract: 25 years, including 5 year Core Investment Period (CIP) Value: Capital investment during CIP of £78m PFI Credit: £198.0m Contract Price: Approx £27m p.a.( £15m revenue support grant, £9.5m existing expenditure plus £2.5m)
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The Evidence of need
100% Inventory Survey 2007 Updated Condition Surveys 2007
All road classes Carriageways and footways
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The Evidence of need
Figure 1: Trends in Road Condition
0% 5% 10% 15% 20% 25% 30% 35% 40%
BV 187 Footways BV 223 Borough Principal Roads BV 224a Classified Roads BV 224b Unclassified Roads Percentage of Network Requiring Investigation
Hounslow 2005/06 BVPI Hounslow 2006/07 BVPI London 06/07Average All England 06/07 Average
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The Evidence of need
Aspects of Environment most in need of improvement in the borough (Resident’s Panel – November 2007)
- 1. Reduce noise and air pollution
- 2. Resurface Footways
- 3. Resurface Road
- 4. Improve Lighting
- 5. Put in more trees shrubs and bulbs
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Project Objectives
To provide a significant Step Change To address the Whole Street Environment Linked to Asset Management Best Practice
HAMP V2 adopted in early 2008 Asset Valuation in 2007 - £525m
Identified Best Value Option – PFI
Leads to demonstrable efficiency savings Builds on our experience (WSE Schemes etc.) Long term, sustainable approach (25 years)
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Our Approach
Performance Standards
Based on accepted practice (NCI ‘plus’) Add a new PS for compliance with WSE objectives
Sustainability
Committed to achieving Beacon status Already recycle materials Reduce Energy Will work with contractor and DfT WSE encourages walking and cycling
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Our Approach
New Approach to Appraisal (NATA) Refresh
Benefit to Cost Ratio (BCR) > 2 Will work with DfT to develop this further
Risk
Risk register developed - addresses Project/Procurement Risks During OBC will further analyse construction and Operational Risks
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Our Approach
Whole Street Environment (WSE) Approach includes all fence to fence services
Based on Manual for Streets and LBH Street Design Guide Reduced maintenance Good Practice not “gold plating”
Whole Street Environment delivers
Big perceivable benefit, small extra cost Paid for by Council contribution Spread around Wards, throughout 25 years Minimises disruption
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What’s included?
Whole street “fence to fence” approach Roads and footways Highway drainage Bridges and structures Street lighting illuminated signs Street furniture Trees and verges Street cleansing
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Before / After
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Before / After (cont’d)
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Project Governance
Strong project structure designed to deliver (based
- n Prince2 principles and 4ps guidance)
Project Board includes Political and DfT representation Builds on Hounslow’s experience Project Team with extensive experience including PFI
Clear responsibilities Wide range of skills and support Balance of internal and external expertise
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Project Governance
Identified Gaps – recruiting Project Director and Project Manager External Advisers to be appointed - post OBC Stage £2.0m provision set aside for Procurement Costs Ambitious but deliverable timetable
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Project Governance
LBH scrutiny arrangements
Delivery Team
LBH approval processes Project Owner Suresh Kamath Project Director (to be appointed) Director SM&PP – Suresh Kamath (Chair of Board) Lead Member of Environment - Cllr. Barbara Reid Director of Finance – Stephen Fitzgerald Borough Solicitor – Terry Welsh Project Director (tba) Department for Transport Rep – Jens Reinke Transactor (Atkins) Project Team Project Team Support Project Manager (to be appointed) Corporate Procurement Risk Management & Insurance Human Resources Audit Public Relations Internal Financial Adviser Mel Smith External Financial Adviser Deloitte & Touche * External Technical Adviser Chris Britton Consultancy * Internal Technical Adviser Satbir Gill Internal Legal Adviser Chuhr Nijjar External Legal Adviser (to be appointed) Internal & External ad hoc Specialist Advisers Lead Technical Manager Krishnan Rahakrishnan Transport for London (* Appointed until OBC only; then subject to competitive tendering under EU and UK legislation)
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Staff Issues
Real opportunity to participate in transformation of the borough Small client side Transfer most highway, lighting and street cleansing staff to contractor- approx 160 staff T.U.P.E. Regular information to staff and Trades Union
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Consultation and Communication
Strategy being developed Residents and businesses
- Residents panel survey
- Focus groups – first one in November
- Road Shows
Members
- Scrutiny
- Area Committees – first round in November
Staff
- those directly involved and others
Media
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