NORTHERN TERRITORY GOVERNMENT BUDGET PAPER NO. 4 THE INFRASTRUCTURE PROGRAM www.budget.nt.gov.au The Infrastructure Program 2015-16 Budget Paper No. 4 Contents Introduction 1 Summary Tables 11 Total Infrastructure Payments 13 2014-15 Capital Works and Estimated Capital Expenditure 14 2015-16 Capital Works and Estimated Capital Expenditure 15 Capital Works Summary 16 Grants Summary 17 Repairs and Maintenance Summary 18 Program Details by Agency 19 Auditor-General’s Office 20 Northern Territory Electoral Commission 20 Ombudsman’s Office 20 Department of the Chief Minister 21 Department of the Legislative Assembly 21 Tourism NT 22 Darwin Port Corporation 23 Land Development Corporation 24 Department of Primary Industry and Fisheries 25 Department of Land Resource Management 26 Office of the Commissioner for Public Employment 26 Department of Treasury and Finance 26 Department of Lands, Planning and the Environment 27 Department of Mines and Energy 29 Department of the Attorney-General and Justice 29 Department of Children and Families 30 Department of Health 30 Top End Health Service 31 Central Australia Health Service 33 Department of Correctional Services 34 Department of Business 34 Department of Corporate and Information Services 35 NT Fleet 35 Data Centre Services 36 Northern Territory Police, Fire and Emergency Services 37 Department of Education 38 Department of Transport 40 Department of Infrastructure 45 Department of Local Government and Community Services 46 Aboriginal Areas Protection Authority 46 Department of Housing 47 Parks and Wildlife Commission of the Northern Territory 49 Territory Wildlife Parks 50 Department of Sport and Recreation 51 Department of Arts and Museums 52 Committal Target Dates for Major Capital Projects 53 Appendices 59 Appendix 1: Government Owned Corporations 60 Appendix 2: Indigenous Essential Services 60 Appendix 3: Explanatory Terms 61 The Infrastructure Program Introduction Budget Paper No. 4 details the Northern Territory’s infrastructure program for 2015-16. The program details comprise capital works, capital grants, repairs and maintenance and infrastructure-related expenses for all Territory budget sector agencies and summary information for government owned corporations. The 2015-16 infrastructure payments increase from $1.04 billion in 2014-15 to $1.39 billion, largely driven by Government’s investment in transport assets to provide better access to all regions of the Territory and support economic development. The sale of the Territory Insurance Office (TIO) has provided the Territory an opportunity for further economic and social infrastructure development, with $200 million of the TIO sale proceeds immediately reinvested in the Government’s Building the Territory initiative. The initiative will see social, community and economic infrastructure projects, including flood mitigation works, progressed through the 2015-16 Capital Works Program. Projects were identified through the Government’s invitation to the public to propose infrastructure projects to be funded through the TIO sale proceeds. The balance of the proceeds will be invested in the Northern Territory Infrastructure Development Fund to progress future strategic economic projects. Following the damage caused by cyclones Lam and Nathan, the Territory Government has invested $92.5 million to rebuild and repair community and government employee housing, community infrastructure and government facilities. Further investment to build new houses and upgrade existing houses in remote communities will continue under the Territory and Commonwealth government’s Remote Indigenous Housing program. Major construction works for the $150 million Palmerston Regional Hospital will commence in 2015-16. The works are expected to be completed, and the hospital operational, in 2018. A major refurbishment program for Royal Darwin Hospital will commence in 2015-16, along with continuing remediation and rectification works at Alice Springs Hospital. The 2015-16 infrastructure program provides an increase across all functional categories and includes significant investment in new schools to support children with special needs, new and upgraded sporting infrastructure, and arts and cultural facilities. Investment in the Territory Government owned utility corporations, Territory Generation and Power and Water Corporation (PWC), is estimated at $282 million in 2015-16, to ensure reliability of electricity, water and sewerage supply services. Total Infrastructure Program and Payments The Territory’s total Capital Works Program is $1.42 billion in 2015-16, with associated capital works cash of $785 million. Total infrastructure payments for 2015-16, which include payments by government owned corporations, are estimated to be $1.39 billion comprising $1.03 billion for capital projects, $353 million for repairs and maintenance and $7 million for infrastructure-related expenses. While the proportion of Territory funding has reduced from 74 per cent in 2014-15 to 69 per cent in 2015-16, the overall cash funded by the Territory has increased significantly in 2015-16. Introduction 1 2015-16 Budget Table 1: Total Infrastructure Payments 2014-15 2015-16 Program Cash Program Cash $M $M $M $M BUDGET SECTOR Capital works 1 157 479 1 415 785 Grants 102 100 Repairs and maintenance 202 211 Infrastructure-related 5 7 TOTAL BUDGET SECTOR 788 1 103 GOVERNMENT OWNED CORPORATIONS Capital works 175 194 Repairs and maintenance 79 88 TOTAL GOVERNMENT OWNED CORPORATIONS 254 282 TOTAL INFRASTRUCTURE PAYMENTS 1 042 1 385 Capital Works for the Budget Sector The 2015-16 Capital Works Program is $1.42 billion, $258 million higher than the 2014-15 program of $1.16 billion. The increased program is more than matched by an increase of $306 million in cash allocated to capital projects to ensure there are sufficient resources to progress such a significant program. The increased cash allocation means that while the total revote out of 2015-16 is expected to be $630 million, it is lower than the $678 million revote out of 2014-15. In addition, there is a significant investment in Territory roads, with the construction time for a number of the larger projects spanning several financial years. As such, the revote out for the Department of Transport is higher in 2015-16 than the revote in. This will reduce over future years, as projects are completed. The Capital Works Program incorporates a number of significant new Territory-funded projects, including: • $250.2 million for Territory roads; • $101.9 million for land release projects across the Territory; • $51.9 million to construct new schools at Henbury and Palmerston to cater for students with special needs; • $40 million for the staged refurbishment of Royal Darwin Hospital’s main tower building; and • $26 million for upgrades to sports facilities, including Richardson Park, netball and athletics track and field facilities in Alice Springs and ovals in remote communities. This is in addition to a large capital grants program to support facilities across the Territory. 2 Introduction The Infrastructure Program Building the Territory The Capital Works Program includes $202 million for social, community and economic infrastructure projects funded through the proceeds from the sale of TIO. Major projects being progressed in 2015-16 include: • flood mitigation works, to be identified by the Darwin and Katherine Flood Mitigation committees ($42.4 million); • sealing sections on the Litchfield Park Road and construct a bridge over the Lower Finniss River ($28.5 million); • complete sealing of the Mereenie Inner Loop, Red Centre Way ($25 million); • stage 1 works to construct a new preschool and primary school for children with special needs in Palmerston ($21.4 million); • upgrade and redevelopment of facilities at Litchfield National Park and Casuarina Coastal Reserve ($21.1 million); • staged refurbishment of Royal Darwin Hospital’s main tower building ($20 million towards a total project cost of $40 million); • relocation of the Katherine ambulance centre out of the flood zone ($7.6 million); and • upgrade the Sadadeen bypass road to improve access during times of flood ($7.5 million). Table 2 summarises Building the Territory Capital Works projects by category. Table 2: Building the Territory Major Capital Works Projects by Category Capital Works $M % Category Tourism infrastructure 79.6 39.4 Flood mitigation infrastructure 57.5 28.5 Social infrastructure 41.4 20.5 Regional economic development infrastructure 23.5 11.6 Total Budget sector 202.0 100.0 Projects by Functional Category Table 3 summarises major projects by functional category. The 2015-16 program provides an increase across all functional categories, including a record investment for roads and transport at $505.6 million, or 35.8 per cent of the program. Housing investment remains high at $264.8 million, or 18.7 per cent of the program, with health contributing $195.5 million (13.8 per cent) and economic and community infrastructure $158.9 million (11.2 per cent). Projects that support regional development across the Territory are incorporated within functional categories. Introduction 3 2015-16 Budget Table 3: Major Capital Works Projects by Functional Category Capital Works $M % Functional category Roads and transport 505.6 35.8 Housing and related works 264.8 18.7 Health 195.5 13.8 Economic and community infrastructure 158.9 11.2 Education 119.3 8.4 Lifestyle and environment 109.0 7.7 Community safety 61.7 4.4 Total Budget sector 1 414.8 100.0 Roads and Transport