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Public Sector Capital Works Library: Departments of Premier & Cabinet, Treasury & Finance Level 5, 1 Macarthur Street East Melbourne Victoria 3002 DX 210759 Ph: 03 9651 5660 Fax: 03 9651 5659 Email: [email protected] PUBLIC SECTOR CAPITAL WORKS 1994-95 BUDGET INFORMATION PAPER N° 1 I Presented by The Honourable Alan Stockdale MP Treasurer of the State of Victoria on the occasion of the Budget 1994-95 PUBLIC SECTOR CAPITAL WORKS PROGRAM 1994-95 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 MELBOURNE L.V. NORTH, GOVERNMENT PRINTER 1994 Public Sector Capital Works 1994-95 Page i Public Sector Capital Works Program 1994-95 (1994-95 Budget Information Paper No. 1) Published by THE LAW PRINTER a business unit of Printing and Publishing Services Victoria (PPSV) Melbourne Victoria Australia © State of Victoria 1994 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 Law Printer PO Box 292 South Melbourne 3205 Victoria Australia ISSN 1035-4963 ISBN 0 7306 5021 9 Published September 1994 by authority L. V. North, Government Printer Melbourne Page ii Public Sector Capital Works 1994-95 TABLE OF CONTENTS Page Introduction 1 Chapter 1 Victorian Public Sector Capital Works Planning 3 Chapter 2 Public Sector Capital Works Program, 1994-95 - Summary 13 Chapter 3 Budget Sector Capital Works Program 21 Parliament 23 Agriculture 24 Arts, Sport and Tourism 25 Business and Employment 27 Conservation and Natural Resources 28 Education 30 Energy and Minerals 41 Finance 42 Health and Community Services 44 Justice 48 Planning and Development 50 Premier 52 Transport 53 Treasury 60 Chapter 4 Non-Budget Sector Capital Works Program 61 Barwon Water 63 Country Fire Authority 65 Electricity Services Victoria 66 Gas & Fuel Corporation 67 Generation Victoria 68 Gippsland Water 69 Grain Elevators Board 71 Melbourne Parks & Waterways 73 Melbourne Water 75 Metropolitan Fire Brigades Board 79 National Electricity 81 Office of Housing 82 Port of Geelong Authority 92 Public Sector Capital Works 1994-95 Page iii Contents - continued Page Port of Melbourne Authority 93 Port of Portland Authority 94 Public Transport Corporation 95 Regional Water Authorities 98 Rural Water Corporation 116 Urban Land Authority 121 Appendix A Location Index 123 Appendix B Contact Addresses and Telephone Numbers 131 Page iv Public Sector Capital Works 1994-95 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 1994-95 public sector capital works program and links the figures in this paper to those in the 1994-95 Budget Papers. The third chapter contains a listing of major capital projects proposed for the Budget sector during 1994-95 and chapter 4 provides a similar listing for the non-budget sector. The listings have been completed by the Department of the Treasury in consultation with agencies. The paper provides an extensive supplement to information on capital projects contained in the 1994-95 Budget Papers. Budget Estimates 1994-95, Budget Paper No.3, contains information about the Budget Sector, by department, while Budget Performance and Outlook 1994-95, Budget Paper No.2, contains summary figures for both the budget and non-budget sectors. Coverage This Paper does not contain an exhaustive listing of all projects approved for expenditure in the public sector. Projects have generally been included only where they are of a specific and capital nature and fall within specific expenditure guidelines. In most cases, the minimum cost threshold is $100,000. Non-government expenditure on projects is excluded. The listing reflects the reclassification of the Budget sector that occurred at the time of the Treasurer's Autumn Statement and accordingly works for the Public Transport Corporation and Office of Housing now appear as part of the non-budget sector listing. The non-budget sector listing also reflects the structure of the sector as at 1 July 1994, with new entities in the the electricity industry and amalgamation of agencies in the water industry. Classification of Projects Projects are listed by department under the categories of 'works in progress' and 'new works for commencement in 1994-95'. Under these headings, details of project description and location, total estimated cost, expenditure to 30 June 1994, estimated expenditure in 1994-95 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. Status of project Estimates Public Sector Capital Works 1994-95 Page 1 The published project details reflect the intentions and priorities at the time of the presentation of the 1994-95 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. A location index is included in the Paper to assist further with geographic information requirements. Projects showing several locations under agency headings have multiple entries. Addresses and contact telephone numbers for each agency are included at the end of the Paper. Page 2 Public Sector Capital Works 1994-95 CHAPTER 1 VICTORIAN PUBLIC SECTOR CAPITAL WORKS PLANNING Public Sector Capital Works 1994-95 Page 3 CHAPTER ONE VICTORIAN PUBLIC SECTOR CAPITAL WORKS PLANNING With the need to eliminate the budget sector deficit on current account and to stabilise State public debt overall, and for governments as a whole to achieve 'best practice' levels of service delivery performance, Victorian Government Departments are being required to evaluate more stringently the performance of their assets and the need for maintenance, upgrade and replacement. Government business enterprises are being compelled also by commercial pressures and increasing openness to competition 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 all matters associated with the public 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. Under BERC, past capital works planning arrangements were reviewed and new and improved processes put in place during 1993, including: formal appraisal for all projects put forward, including 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 works program, beyond the budget year, covering both the budget and non-budget sectors. In the 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, is also being introduced. This will give departments greater incentive to increase the performance of their asset base by encouraging maintenance rather than replacement, redeployment rather than retention, and completion of construction and acquisition on time and according to specification. Further details are given in Budget Performance and Outlook, 1994-95, Budget Paper No. 2. Public Sector Capital Works 1994-95 Page 5 In addition where a lease incentive payment is negotiated, any future amounts received will be brought to account as revenue rather than be netted off against fit-out costs of particular projects as has been the practice to date. This will result in accurate total project costs being reported. The budget sector capital works program outlined in this information paper is an outcome of these 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 have come fully into effect in the 1994-95 planning round, and will next be integrated into the Government's overall strategic management cycle and extended to a three-year time-frame during the 1995-96 round shortly to begin. The planning for the introduction of a comprehensive performance monitoring regime for government business enterprises (GBEs) is well advanced. Capital expenditure requirements will form part of the overall outcomes for corporate (three years) and business (one year) plans to be agreed with the
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