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Monday, 7 March 2005
Page: 198


Senator O’Brien asked the Minister for Finance and Administration, upon notice, on 23 December 2004:

With reference to the proposed new Immigration Reception and Processing Centre (IRPC) on Christmas Island:

(1) (a)   What is the current estimated total cost of construction including related costs; and (b) will the Minister provide a detailed breakdown of the cost.

(2) (a)   What funds have been expended so far; and (b) will the Minister provide a detailed breakdown of the cost by financial year.

(3)   Will the Minister provide a list of all contracts let for the construction phase of the project, including the successful tenderer.

(4)   On what date will: (a) the early works phase of the project be completed; (b) the main works phase of the contract commence; (c) the main works phase of the contract be completed; and (d) the IRPC be operational.

(5) (a)   What compensation was paid to Phosphate Resources Limited for the resumption of land for the IRPC; (b) on what date was this compensation paid; (c) who undertook the negotiations on behalf of the Commonwealth; (d) which Minister approved the compensation; and (e) what program was the source of the compensation funds.

(6) (a)   What consultants have been engaged in relation to the IRPC project; and (b) in each case, what was the nature of the consultancy, the term of the consultancy and the associated financial value.

(7) (a)   On what date did the Department of Finance and Administration assume responsibility for the project; (b) why did the Department of Finance and Administration assume responsibility for the project; and (c) what other IRPC construction projects did the Department of Finance and Administration manage prior to the transfer of responsibility for the IRPC project.

(8)   What role does the Department of Immigration and Multicultural and Indigenous Affairs perform in relation to the project during planning and construction.

(9)   What role does the Department of Transport and Regional Services perform in relation to the project during planning and construction.

(10)   Have all contracts let for the construction phase of the project included local training and local business content; if so, will the Minister provide details; if not, why not.

(11)   Has the local training and local business involvement which formed part of the assessment criteria for the major works contract been consistent with evidence given by the Department of Finance and Administration to the Joint Standing Committee on Public Works on 31 October 2003; if so, will the Minister provide details; if not, why not.

(12)   Will local training and employment and local business involvement form part of the assessment criteria for the service contract for the operation of the IRPC; if not, why not.

(13)   Will the Christmas Island community have access to recreational and other facilities at the IRPC, subject to operational needs.


Senator Minchin (Minister for Finance and Administration) —The answer to the honourable senator’s question is as follows:

(1) (a)   The total outturn capital estimate for the capital works that was announced by the Government is $335.5 million. Part of this amount ($12.6 million) has been reclassified from capital to recurrent expenditure. Funding has been divided between the Department of Finance and Administration (Finance), the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA) and the Department of Transport and Regional Services (DOTARS).

(b)   Finance has been allocated $257 million to manage and meet all costs incurred in delivering the project from 18 February 2003 to completion. This is made up of:

(i)  

   $238.3 million for construction costs (including civil works and provision of site services);

(ii)  

   $15.4 million for project design and management services; and

(iii)  

   $3.3 million for Finance’s project management costs.

(2) (a)   Project expenditure by Finance totals $34.486 million between 18 February 2003 and 31 December 2004.

         

(b)  

Expenditure by Financial Year (in $millions)

Expenditure Type

2002-03

2003-04

2004-05

(to 31/12/04)

Total

Construction

14.193

2.265

5.447

21.905

Project design & Management Services

1.036

6.004

3.793

10.833

Internal Costs

0.168

0.403

0.281

0.852

Utilities, Maintenance of site and construction camp & Other

0.166

0.543

0.187

0.896

Total

15.563

9.215

9.708

34.486

(3)  

Table of Contractors for Construction Phase

Contract

Name of Contractor

Project Management and Superintendency Services Contract

CMR Savant (Aust) Pty Ltd

Cost Manager Contract

WT Partnership (Aust) Pty Ltd

Principal Consultant Contract

Phillips Smith Conwell Architects Pty Ltd

Caretaking Contract (Construction Camp)

Compass Group (Aust) Pty Ltd

Early Works Contract

BMD Constructions Pty Ltd

Design and Construction contract for the rising sewer main

Water Corporation

Preferred Tenderer Deed for Main Works Contract

Baulderstone Hornibrook (Aust) Pty Ltd

Main Works Contract

Baulderstone Hornibrook (Aust) Pty Ltd

(4) (a)   13 January 2005

(b)   6 January 2005

(c)   31 August 2006 (estimate)

(d)   I note that this question has also been directed to the Minister for Immigration and Multicultural and Indigenous Affairs and it is more appropriate that she provide a response.

(5)   I note that this each part of this question has also been directed to the Minister for Local Government, Territories and Roads and it is more appropriate that he provide a response.

(6)  

Table of Consultants

(a)

(b)

Name of consultant

Nature of consultancy

Term

Financial

value

Blake Dawson Waldron Lawyers

Legal advisor for Early and main works request for tenders

23 months

$317,156.20

Phillips Fox Lawyers

Legal advisor for main works tender process and contract formation

6 months

$23,953.58

Australian Government Solicitor

Probity advisor for tender processes

22 months

$68,540.64

(7) (a)   18 February 2003

(b)   In February 2003 the project was respecified and the delivery strategy was changed to a more traditional method, due to reduced project urgency. Transfer of the Christmas Island IRPC construction project recognised Finance’s capabilities in procurement and construction project management, particularly in traditional delivery methods.

(c)   This is the first purpose-built permanent IRPC construction project.

(8)   DIMIA is involved in the approval of the design and construction as fit for purpose.

(9)   DOTARS is responsible for the provision of land and associated infrastructure (such as power, water etc) to the IRPC.

(10)   Yes. All contracts let for construction activities on Christmas Island have required the tenderers to identify their subcontractors and, in the case of the early works package, the location of the construction plant proposed to be used on the projects. The early works civil packages and rising sewer main packages were sized to ensure maximum involvement of local businesses.

The contractor for the early works package used local plant and labour from the Indian Ocean Group Training Scheme.

The installation of the rising sewer main consisted of three packages of work, all of which were awarded to local businesses.

The main works contract requires the contractor to meet a target sum for the value of subcontracts to be awarded to local Christmas Island businesses. The target sum was specified as part of the contractor’s tender and is linked to financial incentives in the contract if the target is exceeded and a financial disincentive if the target sum is not met.

(11)   Yes. To encourage the development of the Christmas Island business community, the main works tender included assessment criteria that required tenderers to:

  • detail specific strategies for working within the Christmas Island community (Schedule W3). This covered training and employment opportunities, building and sustaining community relationships, impact on social infrastructure, managing cultural issues, community programmes, and any other pertinent issues; and
  • quantify a target sum for the value of subcontracts to be awarded to local Christmas Island businesses (Schedule W16). This target sum is linked to financial incentives in the main works contract.

(12)   I note that this question has also been directed to the Minister for Immigration and Multicultural and Indigenous Affairs and it is more appropriate that she provide a response.

(13)   I note that this question has also been directed to the Minister for Immigration and Multicultural and Indigenous Affairs and it is more appropriate that she provide a response.