Scrutiny Panel Publishes Report on Future Hospital

Wednesday 6 December 10:45

The Future Hospital Review Panel has completed its review of the Future Hospital Project and funding proposals and has today published its report.

The Proposition examined by the Panel (P.107/2017, lodged by the Minister for Treasury and Resources) asks States Members to approve the preferred scheme (a new build hospital on a part of the current site and a new build facility at Westaway Court) and the funding strategy. 
The Panel appointed technical advisers Concerto Partners LLP and Opus Corporate Finance to assist it during the review. Concerto undertook an assurance review of the Outline Business Case which provides the detail of the preferred scheme for the new hospital. Opus provided expert advice on the funding proposals.
Concerto’s overall view of the Outline Business Case is that it is fit for purpose and presents a sound enough basis for decision making by the States Assembly. Concerto rate the project as AmberGreen because there is sufficient contingency, in terms of time and cost allowances, to cope with the various risks that face it. In terms of the short-term objectives of the project (planning approval, P.107/2017 approval and the appointment of a main contractor) Concerto rate this phase as AmberRed which means that the successful delivery of the project in the short-term period is in doubt.
Opus considered that the proposal to issue a bond to fund the hospital project makes sense as it is a form of bond already issued by the States and therefore will be familiar to investors. Opus also comment that the funding proposal is a “middle path” between funding the hospital entirely from borrowing or entirely from the Strategic Reserve. Opus considers this to be a pragmatic response to these two options.
The Chairman of the Panel, Deputy Simon Brée said: “It is clear that a significant amount of work has been undertaken in providing the detail for the new hospital and its funding mechanism. However, the Panel is unconvinced that a debate should take place in the absence of planning approval and asks the Treasury Minister to defer the debate until the final planning decision is known”.
 A copy of the report will be made available on the Scrutiny website

Read the Future Hospital Report Here.





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