Page 42 - Statement of Intent 2015/16

New Capital Expenditure
2015/16 $M
2016/17 $M
2017/18 $M
2018/19 $M
Under $50,000
2
2
2
2
Over $50,000 (excluding campus reconfiguration)
49
59
49
24
Campus Redevelopment
9
0
0
0
Contingency
1
1
1
1
Total Capital Expenditure
61
62
52
27
We understand that approval of our Annual Plan is not approval of any particular business case. Some business cases will still be subject to approval by the Ministry of Health, National Health Board and Treasury prior to any recommendations being made to the Minister of Health. The Board also requires management to obtain final approval in accordance with delegations of authority prior to purchase or construction commencing.
Strategic capital spend includes:
Project Name
Business Case Start Date
Business Case Completion Date
Business Case Expected Approval Date
Approx. $
Crow n Cap Requirement
Education Centre Extension
2014/15
2015/16
2015/16
$25.0m
$0
Clinical Workstation eSpace (Regional Project)
2014/15
2015/16
2015/16
$10.4m
$0
Medicines Reconciliation (Regional Project)
2015/16
2016/17
2016/17
$3.9m
$0
Building A - Adult
2018/19
2019/20
2019/20
$29.1m
$0
Building B & C - Adult
2019/20
2020/21
2020/21
$41.9m
$0
Note 1: The Clinical Workstation is the capital component. In addition it is estimated that there is a further $10 million operating cost associated with change and non-capitalisable costs.
Note 2: Buildings A, B and C are ward blocks. Menzies (our current main ward block) will be demolished when new wards are available for use.
We have the following existing financing facilities:
 Ministry of Health ($211.7 million) of which $211.7 million has been drawn down at end of June 2015. This facility includes:
– $125 million for Service Campus Redevelopment;
– $40 million for conversion of equity repayment to debt;
– $6.7 million for the forensic rebuild. This project is complete and the loan is
fully drawn down;
 Private financing of $20.2 million for the car park building is currently available and
we are using the national shared banking arrangement to fund. Conversion of this approved loan to crown funding is no longer an option. As this is a necessary cash inflow we have included $20.2m in our plan as an equity injection or a crown loan and will be requesting this funding.
We also use the following facility under the Health Benefits Limited Shared Banking Arrangement in accordance with the Operating Policy Framework to manage our working capital requirements:
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