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Cook Islands Government Budget Estimates 2016/2017

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Cook Islands Government Budget Estimates 2016/2017 COOK ISLANDS GOVERNMENT BUDGET ESTIMATES 2016/2017 Book 3 Capital Plan Hon. Mark Brown Minister of Finance June 2016 Table of Contents 1 2016/17 Capital Plan ............................................................................................................... 1 2 Financing the Capital Plan ....................................................................................................... 3 3 Expenditure 2016/17 to 2019/20 ............................................................................................ 3 4 Capital Programme .................................................................................................................. 8 4.1 Te Mato Vai – Rarotonga Water Upgrades ............................................................................. 8 4.2 Land acquisition for water intakes .......................................................................................... 8 4.3 Project City Stage 3 – Retention Fund ..................................................................................... 9 4.4 Establishing new water galleries ............................................................................................. 9 4.5 National Renewable Energy Development Programme .......................................................... 9 4.6 Sanitation Upgrade Programme (SUP) .................................................................................. 10 5 Capital Projects ...................................................................................................................... 11 5.1 Rarotonga Road Sealing Programme ..................................................................................... 11 5.2 Apii Nikao Rebuild ................................................................................................................. 11 5.3 Atiu Airport Runway Stabilisation ......................................................................................... 11 5.4 Atiu Water distribution mains ............................................................................................... 12 5.5 Bridges and Drainage ............................................................................................................. 12 5.6 Avatiu Valley Stream embankment ....................................................................................... 12 5.7 Central Laboratory ................................................................................................................. 13 5.8 Chinese Public Building Upgrades ......................................................................................... 13 5.9 Mangaia Road Sealing ........................................................................................................... 13 5.10 Orongo Development Master Plan and Centre reconstruction ............................................ 14 5.11 Pa Enua Machinery Shelters .................................................................................................. 14 5.12 Pukapuka Hospital Reconstruction ........................................................................................ 15 5.13 Pukapuka Government Representative (GR) House Rebuild ................................................ 15 5.14 Rutaki Foreshore Rock Revetment Feasibility Study ............................................................. 15 5.15 Vaikapuangi Office Redevelopment and new National Archives Facility .............................. 15 5.16 Tereora College Redevelopment Project – Stage 1 ............................................................... 16 5.17 Cyclone Shelter Program ....................................................................................................... 17 5.18 Mangaia Central Water Project ............................................................................................. 17 5.19 Manihiki Airport Terminal Upgrade ...................................................................................... 17 5.20 Mitiaro Water Upgrade ......................................................................................................... 17 5.21 Omoka Harbour Upgrade ...................................................................................................... 18 5.22 Pukapuka Airport Terminal Upgrade ..................................................................................... 18 5.23 Yato Cargo Shed Upgrade ...................................................................................................... 18 5.24 RSA Cemetery Rock Wall ....................................................................................................... 18 6 Capital Purchases ................................................................................................................... 19 6.1 Heavy Machinery ................................................................................................................... 19 a. Central procurement for HV Transport Trailer ...................................................................... 19 b. Mauke Enua Medium Genset ................................................................................................ 19 c. Outboard Motor Replacement Program ............................................................................... 19 i d. Rakahanga Large Boat & Outboard Motor ............................................................................ 19 e. Mangaia HIAB truck ............................................................................................................... 20 f. Penrhyn Slasher ..................................................................................................................... 20 6.2 Plant and Equipment ............................................................................................................. 20 a. National Incinerator Feasibility Study ................................................................................... 20 b. Island Cargo Barge Repair Programme .................................................................................. 20 c. Health Technical Equipment.................................................................................................. 21 6.3 Information Communication Technology (ICT) ..................................................................... 21 a. Government IT Network & supplies (Computers & Printers) ................................................ 21 b. Banking Payment System ...................................................................................................... 22 c. Education Equipment and ICT Upgrades ............................................................................... 22 7 Other Capital ......................................................................................................................... 24 7.1 Road & Water Network Maintenance ................................................................................... 24 7.2 Vaka Maintenance Capital Projects ....................................................................................... 24 7.3 Capital Distribution Fund and Outer Islands Small Capital Fund........................................... 24 7.4 Provision for land rent reviews ............................................................................................. 25 7.5 MANEA Games Upgrade ........................................................................................................ 25 8 Glossary ................................................................................................................................. 26 9 Acronyms ............................................................................................................................... 27 ii 1 2016/17 Capital Plan The Capital Plan is intended to advise the Cook Islands community and our international partners of the Government’s intention to invest in capital infrastructure. This is guided by the visions and aspirations of our people for a vibrant economy supported by good infrastructure and energy security; where our people have opportunities to fulfill their potential; are resilient to disasters and climate change impacts; and live in a healthy environment - Te Kaveinga Nui, National Sustainability Development Plan. Capital investments from all sources was scheduled for $67.843 million in 2015/16. This is expected to increase significantly in the 2016/17 Budget, to $81.240 million. The increase is largely attributed to the $12.980 million loan administered by ADB to complete the transformation of electricity generation from diesel to solar power for the Southern Cook Islands. This brings total investment in capital over the four-year period from 2016/17 to 2019/20 at $160 million, financed through government funds, loans and overseas development assistance. Chart 1: Infrastructure Investments Ports (Air/Sea) ICT Machinery 4% 2% 4% Multi-sector Water 7% 28% Roads 10% Waste & Sanitation 10% Buildings Energy 24% 11% The 2015/16 capital plan focuses on a number of priority areas related to building resilience to climate change by investing in capital projects that provide access to clean water, renewable energy and better road networks. Improved access to clean water receives the largest share of capital funds and, in conjunction with projects such as Waste & Sanitation and Energy, will account for over almost half of capital funding over the years to 2019/2020. This will assist our communities adapt to the changing environment. A number of key projects such as Te Mato Vai,
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