Future Hospital: Funding Strategy

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A decision made on 29 November 2016:

Decision Reference: MD-TR-2016-0100
Decision Summary Title:	Future Hospital : Funding Strategy		Date of Decision Summary:	29th November 2016
Decision Summary Author:	Director for Financial Planning & Performance		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Future Hospital : Funding Strategy		Date of Written Report:	29th November 2016
Written Report Author:	Director for Financial Planning & Performance		Written Report : Public or Exempt?	Public
Subject: Report and proposition to set out the proposed funding strategy for the new Jersey General Hospital construction project
Decision(s): The Minister approved the proposed funding strategy for the new Jersey General Hospital construction project and requested that the report and proposition be lodged ‘au Greffe’ for debate at the earliest opportunity.
Reason(s) for Decision: To enable the report and proposition on the funding strategy for the new Jersey General Hospital construction project to be lodged ‘au Greffe.’ On the 19th October 2016, the Council of Ministers lodged a proposition asking Members to approve in principle that he site location for the new General Hospital should be the site of the current General Hospital, the footprint currently occupied by Sir Peter Crill House and Gwyneth Huelin out-patient buildings in the existing hospital estate, together with certain properties adjoining the current hospital and Patriotic Street car park on the east side of Kensington Place together with the use of Westaway Court. Given the latest estimate for this proposed development, the funding strategy agreed in principle by the States in Budget 2014 is no longer appropriate. Now that the options for the site choice have greater certainty, as has the range of likely costs, this has allowed greater certainty for the funding strategy to be provided.
Resource Implications: There are no manpower implications for the States arising from this proposition. The Financial implications are explained in the report an include one-off costs of approximately £1.5 million to £2.5 million and on-going costs of approximately £10 million to £11 million per annum depending on market conditions and the decisions made on levels of debt to issue. The sum borrowed will also need to be repaid at the end of the debt term.
Action required: The Head of Decision Support to request the Greffier of the States to arrange for the report and proposition to be lodged ‘au Greffe’ for debate at the earliest opportunity. The Head of Decision Support to advise the Director for Financial Planning & Performance when the Report and Proposition has been approved by the States Assembly.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision: