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Public Sector Capital Works Program 1995-96

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Public Sector Capital Works Program 1995-96 PUBLIC SECTOR CAPITAL WORKS PROGRAM 1995-96 Presented, by The Honourable Alan Stockdale, M.P. Treasurer of the State of Victoria for the information of Honourable Members BUDGET INFORMATION PAPER No. 1 BY AUTHORITY, VICTORIAN GOVERNMENT PRINTER 1995 Public Sector Capital Works 1995-96 Page i Public Sector Capital Works Program 1995-96 (1995-96 Budget Information Paper No. 1) Published by THE DEPARTMENT OF TREASURY AND FINANCE © State of Victoria 1995 This book is copyright No part may be reproduced by any process except in accordance with the provisions of the Copyright Act. Address all inquiries to The Secretary The Department of Treasury and Finance 1 Treasuiy Place Melbourne Victoria Australia 3002 ISSN 1035-4964 ISBN 0 7306 7975 6 Published September 1995 by authority Victorian Government Printer Page ii Public Sector Capital Works 1995-96 TABLE OF CONTENTS Page Introduction 1 Chapter 1 Victorian Public Sector Capital Works Planning 3 Chapter 2 Public Sector Capital Works Program, 1995-96 - Summary 15 Chapter 3 Budget Sector Capital Works Program 25 Parliament 27 Agriculture, Energy and Minerals 28 Arts, Sport and Tourism 29 Business and Employment 31 Conservation and Natural Resources 32 Education 34 Health and Community Services 52 Justice 55 Planning and Development 57 Premier and Cabinet 59 Transport 60 Treasury and Finance 66 Chapter 4 Non-Budget Sector Capital Works Program 68 Country Fire Authority 70 Gas Transmission Corporation 72 Gascor 73 Gippsland and Southern Rural Water 75 Goulburn-Murray Rural Water 76 Melbourne Parks & Waterways 82 Melbourne Water 83 Metropolitan Fire Brigades Board 85 Office of Housing 87 Port of Melbourne Authority 95 Port of Portland Authority 96 Powemet Victoria 97 Public Transport Corporation 98 Regional Water Authorities 100 Sunraysia Rural Water 122 Public Sector Capital Works 1995-96 Page iii Contents - continued Page Victorian Power Exchange 123 Wimmera-Mallee Rural Water 124 Appendix A Location Index 125 Appendix B Contact Addresses and Telephone Numbers 135 Page iv Public Sector Capital Works 1995-96 INTRODUCTION The first chapter of this Paper provides an overview of the Victorian public sector capital works planning process which, as well as embodying formal project appraisals, is enabling the Government to take a comprehensive "total Government1 view of its capital investment priorities and to develop its plans a number of years ahead. The second chapter briefly summaries the 1995-96 public sector capital works program and links the figures in this paper to those in the 1995-96 Budget Papers. The third chapter contains a listing of major capital projects proposed for the budget sector during 1995-96 and chapter 4 provides a similar listing for the non-budget sector. The listings have been completed by the Department of Treasury and Finance in consultation with agencies. The paper provides an extensive supplement to information on capital expenditure contained in the 1995-96 Budget Papers. Budget Estimates 1995-96, Budget Paper No.3, contains information about the budget sector, by department, while Budget Performance and Outlook 1995-96, Budget Paper No.2, contains summary figures for both 1he budget and non-budget sectors. Coverage This Paper does not list all projects approved for expenditure in the public sector. Projects have generally been included only where they are of a specific nature and fell within specific expenditure guidelines. In most cases, the minimum cost threshold is $100,000. Non-government expenditure on projects is generally excluded however supplementary information is provided in Chapter Two on specific private infrastructure projects being undertaken on behalf of the Government. The non-budget sector listing reflects the structure of the sector as at 1 July 1995. A number of GBEs are companies operating under Corporations Law and are covered by the reporting requirements of the Corporations Law. The capital programs of these entities are not included in this publication. Classification of Projects Projects are listed by department under the categories of 'works in progress' and 'new works for commencement in 1995-96. Under these headings, details of project description and location, total estimated cost, expenditure to 30 June 1995, estimated expenditure in 1995-96 and estimated expenditure required to complete projects are included where applicable. In some cases, total estimated costs may not be shown where they are subject to review. Public Sector Capital Works 1995-96 Page 1 Status of project Estimates The published project details reflect the intentions and priorities at the time of the presentation of the 1995-96 Budget. However, flexibility is maintained in the management of capital programs to enable agencies to respond to altered circumstances and this may require estimated expenditure on approved projects to be rescheduled during the course of the year. Location For each agency except the Roads Corporation, projects are listed alphabetically by project location. Roads Corporation projects are listed alphabetically by project description. Appendix A contains an index of projects by location to assist farther with geographic information requirements. Projects showing several locations under agency headings have multiple entries. Addresses and contact telephone numbers for each agency which has projects listed in Chapters 3 or 4 are included at the end of the Paper. Page 2 Public Sector Capital Works 1995-96 CHAPTER 1 VICTORIAN PUBLIC SECTOR CAPITAL WORKS PLANNING Public Sector Capital Works 1995-96 Page 3 Page 4 Public Sector Capital Works 1995-96 CHAPTER ONE VICTORIAN PUBLIC SECTOR CAPITAL WORKS PLANNING In order to meet targets in relation to debt stabilisation and to achieve *best practice' levels of service delivery performance, over the last 3 years Victorian Government departments have been required to more stringently evaluate the performance of their assets and the need for their maintenance, upgrade, replacement and disposal. In addition, commercial pressures and an increasing openness to competition have compelled Government Business Enterprises (GBEs) to place greater emphasis on demand management and to improve capacity utilisation. The Budget and Expenditure Review Committee (BERC), a sub-committee of Cabinet, is responsible for the overall budget sector capital works planning process. It is responsible for the selection and funding of new works which meet the priorities of the Government in the context of the overall Budget strategy; and for the planning, monitoring and review of all significant departmental capital outlays to ensure that they are undertaken consistent with Government asset management policy and criteria. In 1993, the Committee introduced improved capital works planning processes including: • formal appraisal for all projects, including an assessment of impacts on operating outlays; • orderly processes for co-ordinating and determining project commitment priorities; • improved asset registers linked to asset management plans; • asset management, in turn, a key ingredient of departmental corporate and business plans; preparation of an overall three-year indicative forward capital spending program, beyond the budget year, covering both the budget and non-budget sectors. In Ae 1994-95 Budget, a 'capital charge' on new assets being acquired from State funds and on other capital outlays, with credits for assets released for disposal, was introduced. This is giving departments further incentive to increase the performance of their asset base by encouraging maintenance rather than replacement, redeployment Public Sector Capital Works 1995-96 Page 5 rather than retention, and completion of construction and acquisition on time and according to specification. The budget sector capital works program outlined in this information paper is an 1 outcome of the more comprehensive 'across government capital works planning processes that are enabling the Government more effectively to consider options, establish priorities and apply its capital funds to new projects and investments in ways that best meet its objectives and ensure value for money. These processes came fully into effect in the 1994-95 planning round, and have since been integrated into the Government's overall strategic management cycle during the 1995-96 round. Introduction of a comprehensive performance monitoring regime for GBEs is also well under way. Under the monitoring regime, the forward capital program of each GBE is considered in the context of its three year Corporate Plan. The Corporate Plan, which is subject to review by the Treasurer and the portfolio Minister, sets out the strategic directions for the relevant GBE over the planning period, including targeted key performance indicators. Under current guidelines, the approval of the Treasurer is required for all individual GBE projects involving a total cost of $5 million or more, irrespective of funding sources. Departmental capital works Departmental capital works planning takes account of 'existing' works projects and new project proposals with a total end cost (TEC) of more than $100,000 together with some remaining bulk annual provisions and allocations also for minor works. The capital program is funded by capital receipts from the sale of fixed assets and permits for exclusive rights, Commonwealth grants, dedicated revenues, borrowings and current surpluses. 'Existing' capital works The 'existing' departmental capital works program consists of individual projects in progress which have been
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