Phase 2 Joint Waste Management Procurement: Progress Report
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1 West of England Partnership Joint Waste Management Committee 20 November 2009 Agenda item 7 Phase 2 Joint Waste Management Procurement: Progress Report Purpose 1. To report progress on the mobilisation of the Phase 2 Waste Management Contract. Background 2. New Earth Solutions (NES) provides a monthly client progress report to the West of England Partnership Office. Summary of progress 3. Signing of the lease with landowner. Commercial negotiations and the lease have been completed. Signing took place on 11 November Completion was due to take place Thursday 12 November Main Contractor. Dean Dyball has been appointed by New Earth Solutions as principal design and build contractor. 5. Permit Application. This was submitted to the Environment Agency in the last week of October. Approval is expected in February Planning Permission. Bristol City Council approved this on 04 November 2009 in accordance with the officer s recommendation. However a late request from the council (in the same week that permission was granted) for a S106 contribution of circa 42,000 has delayed the issuing of the consent notice. The start of early enabling works is therefore likely to be slightly delayed although this is not expected to have an impact on the 01 April 2011 target start date for the contract. 7. Funding. NES s progress report summaries the current position. The need for the authorities to conclude the Agreement with NES is understood. The authorities legal adviser is awaiting instructions from the authorities on the completion of the Inter Authority Agreement already circulated to them; their comments are expected by 13 November The legal adviser has recently received further comments from the authorities on the draft agreement with NES. Once the revisions are made he will require authority to release the draft to NES for comment. Once the agreement is finalised it will be sealed by NES and the authorities. Recommendation That members note the further progress made.
2 Appendix: NES progress report 26 October 2009 Author: Terry Wagstaff, Chief Executive, West of England partnership Telephone: ; 2
3 Project Progress Report to West of England Project Name West of England Waste Residue Contract Project Number NES Project Sponsor NES Project Director Peter Mills John Baker Reporting Period 26 th October 2009 (Month of October) Report 5 Overall Project Status Overall Status : Amber: Red: Project is: (a) to scope; (b) on schedule; (c) on budget; (d) has no significant issues. Project has issues that are likely to result in project being late or to have a cost overrun or affect scope. Project will: (a) miss scope; or (b) miss major milestone; or (c) be late; or (d) be over budget; or (e) has significant issue(s). Milestones Milestones achieved in progress period Event Expected date Actual date and/ or comment Main Contractor Appointed Dec th October 2009 Future Project Milestones Lease signed 31 st July 2009 All commercial points agreed. Tidying of documentation being completed. Completion due within a week. Draft Employers Requirements 2 nd Oct 2009 Draft being developed and will continue to be developed. Permit application 18 th Sept 2009 To be submitted Friday 30 th October. Planning determination 4 th Nov 2009 Commence early enabling works 16 th Nov 2009 Approval of Environment Permit Feb 2010 Financial Close Feb 2010 Start on site Mar 2010 Other dates of interest: Planning committee meeting BCC. 4 th November 2009 Red indicates new milestones. West of England 1
4 This project is measured against the following Project PIs: PIs Status (, Amber, Red) Comment The critical path activity of submission of planning was achieved as planned for the end of July. Time The commercial negotiations have been completed and final tidying of the Agreement to Lease, Lease and Works Agreement shall be concluded this week to allow completion next week. NES has now appointed Dean Dyball (DD) (part of the Balfour Beatty Group) as its principal contractor. NES will be working with DD to achieve a fixed price for the delivery of the project. Scope Design work continues to focus on the Employers Requirement s, however with the contractor appointed specific procurement packages can now be prepared by DD to enable market pricing. Land Despite NES reporting some concern to the WoE since the last report negotiations have been completed and NES is pleased to report that status remains. As identified in Time the negotiations with St Modwen continue although these are now focused on contract and scope of the remediation works as the lease is complete. Planning NES can report that it has received the draft report for the planning committee on the 4 th November which confirms a recommendation to approve. NEs has completed a Unilateral Undertaking with St Modwen which shall form a Section 106 to the permission. This captures a contribution to the local pedestrian and cycle network on Kingsweston Road. Funding Amber Discussions have taken place with NES s current lending partner proposing that the WoE facility will be delivered from the existing banking facility. In addition NES is preparing an Information Memorandum to approach the market to investigate alternative funding and investment opportunities. To obtain favourable support to the scheme and affordable proposals NES will need to provide evidence of the signed contract with West of England. WoE and NES need to complete the agreement to support this work stream. Risk WoE has stated that it wishes to review NES s risk register at the next progress meeting. At this time there are no major risks. Issues At this stage there are no major issues. West of England 2
5 Report 5 Up to 26 th October 2009 Activities Reporting 388 Planned work 83 Work completed to last report 21 Work completed this month 21 Work planned but not completed 268 Remaining work The above pie chart is a diagramatic presetation of the high level delivery programe presented in excel. The aim is that the chart presents a count down timer between now and 1 st April 2011, however its based on activities rather than time. Certain activities have been weighted to provide a more appropriate representation of the effort required to deliver the facilities ready for service commencement. The programme clearly has more close activities than construction and therefore construction has been weighted so that 50% of the effort takes place between now and financial close and then the remaining effort in construction delivery. West of England 3
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