University s Capital Development Plan - Summary Of PowerPoint

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1 Capital Development Plan: Introduction 1.1 Significant capital expenditure has continued across the entire University, both in terms of new build and major refurbishment of the existing estate. The total cost of approved and fully funded building projects is currently in the region of 148m. 1.2 This paper details the University s Capital Development Plan for the period and seeks approval, subject to funding being available, for a number of additional priority developments during this period. 1.3 The attached Schedules provide a detailed breakdown of all planned expenditure in the period on capital projects, together with their associated funding sources. Details of each of the Schedules are set out below: (a) Approved Projects Schedule 1 - outlines the agreed total funding sources for all approved building projects within the current capital programme. Schedule 2 - profiles projected expenditure on each approved project during the planning periods , and Schedule 3 - profiles projected funding during the planning periods , and (b) Priority Projects Schedule 4 - outlines the proposed funding of additional priority projects over the planning period. Schedule 5 - profiles the expenditure on these priority projects over the period. Schedule 6 - outlines the projected movement in capital reserves over the planning period if all priority projects are undertaken. 2. Funding of Capital Construction Programme 2.1 Agreed funding sources for each of the existing approved projects are detailed in Schedule 1 and summarised in Table 1 below. Table 1: Total Identified Funding Sources 000 % Internal Funds 78, DEL Capital Grants 23, Foundation, Loans & Other Grants 45, Total 147, The contribution from internal funds amounts to over half of the capital funding for the period and reflects the University s ongoing commitment to the capital programme. The Integrated Operating Plan is underpinned by a target of investing 5% of the Insurable Replacement Value (IRV) of the estate on core infrastructure on an annual basis, with at least half of this being provided by University funds.

2 2.3 The DEL Capital Grant funding relates to the HE Capital funding for the Postgraduate and Executive Education Centre, the Ashby refurbishment project and the Student Experience projects. 2.4 Other external funding includes funding from the Foundation for the development of the Health Sciences Campus, capital receipts from the sale of land and buildings, together with funding from BIS, Invest NI and Bombardier for the Northern Ireland Advanced Composites and Engineering Centre (NIACE) and the UKRPIF grant of 10.5m for the Centre for Experimental Medicine. 3. Five Year Capital Expenditure and Funding 3.1 The current estimated profile of approved capital expenditure over the 5 year planning period is detailed in Schedule 2 and summarised in Table 2 below. Table 2: Approved Capital Expenditure Profile Period Expenditure 000 Pre , , , ,336 Total 147, Of the total expenditure of 147.8m, 77.9m will have been incurred on projects in progress by the start of the financial year. The majority of currently approved projects are planned to be completed by the end of with only 14.3m of approved expenditure planned in the 3 year period to The majority of the expenditure in the period relates to refurbishment of the Ashby Building, development work on the Health Sciences Campus and a number of accommodation projects. 3.4 The internal contributions to the capital programme of approximately 18m per annum, detailed in Schedule 3, reflect the University s ongoing commitment to the development of its core infrastructure. The external contributions include DEL Capital grants, the UKRPIF grant for the Centre for Experimental Medicine and Foundation funding. 4. Priority Projects for Approval 4.1 Following detailed work to support the Estate Strategy, approval in principle is now being sought to proceed with a number of new capital projects. Approval to proceed with these projects will maintain the momentum of the capital development programme and facilitate attainment of the University s corporate goals. It should be noted that no project will commence until all funding sources have been fully agreed. These projects, together with estimated costs, are detailed in Table 3. 2

3 Table 3: Priority Projects to be Approved Project Description 000 Consolidation of Biological Sciences and Expansion Of Global Food Security 29,525 Main Site Masterplan 2013 Library Stack Remodelling 18,030 Lynn Building 3,550 Maths & Physics Old Physics, MAP Teaching Centre, 9,900 New Physics McClay Library Phase 2, including David Bates Building 3,500 Employability and Public Realm 4,120 School of Education 1,000 Health Sciences Refurbishment 5,425 Bernard Crossland Building 5,000 Residential Accommodation Development 20,000 Enhancing the Student Experience 10,000 DKB Refurbishment and Rationalisation 6,000 Carbon Management Plan Projects 3,000 Core Infrastructure Enhancement 5,000 Supporting Strategic Research Priorities 5,000 Supporting the Knowledge Economy 2,000 Strategic Acquisitions 1,000 Queen s Sport 3,000 Integrated Design Centre 1,000 Institute of Health Sciences additional development 20,000 School of Education (Stranmillis) 7,000 Total 163,050 The Core Infrastucture Enhancement budget outlined allows for the relocation of both Occupational Health and Safety Services and the Staff Training and Development Unit. 4.2 The proposed funding sources for each of these priority projects are detailed in Schedule 4 and summarised in Table 4. Table 4 : Funding of Identified Priority Projects 000 % Internal Funds, including Foundation 111, DEL Capital Grants 38, Loans & Other 13, Total 163, The assumed DEL capital grant funding, outlined in Table 4 and Schedule 4, includes the 13m balance of grant funding from the HE Capital Programme not yet formally agreed. 25m is projected from the next round of capital grant funding to 2018 and has been provisionally allocated to the delivery of the Main Site Masterplan. 3

4 m is the assumed funding from loans and relates to the proposed Residential Accommodation project. The delivery model for this project will be determined following the completion of a detailed business plan. 4.5 An indicative profile of the planned expenditure on the additional priority projects is detailed in Schedule The overall impact on capital reserves, following integration of Schedules 2, 3, 4 and 5, is detailed in Schedule 6. With the addition of the proposed priority projects, it is projected that the University will spend approximately 210m on capital developments over the planning period. Based on the projected sources of funding outlined above, the capital reserves balance will reduce to 44.7m by the end of the planning period. 22.9m of this is committed to projects initiated at that time, as detailed in schedule It should be noted that the various funding assumptions underpinning this plan, including the projected internal and external contributions to capital, will be subject to review on an annual basis. 4

5 CAPITAL DEVELOPMENT PLAN 2013/14 to 2017/18 Schedule 1 Funding Sources for Approved Major Capital Construction Projects APPROVED BUDGET DEL FUNDING Foundation, Loans PROJECT Internal Funds Grant & Other Grants TOTAL Internally Funded Projects - Minor Works 2,500 2, ,500 Planned Maintenance 10,082 10, ,082 Disability Combined Heat and Power (CHP) Projects - Main Site & Keir/Ashby 3,454 3, ,454 McClay Library Ground Floor 2,300 2, ,300 Biological Sciences Consolidation & Expansion of Food Sciences - Design Stage Upper Malone Pitches 1 & 10 1,260 1, ,260 IAFLU Expansion Works Main Site Tower & Lynn Library - Design and Enabling stage Extension of 10 Lennoxvale for IPLS Projects < 250k 1,570 1, ,570 23,959 23, ,959 Wholly / Partially Externally Funded Projects - Ashby Refurbishment 10,834 2,276 8,558-10,834 Institute of Health Sciences - Centre for Experimental Medicine 24, ,446 24,446 Health Sciences Refurbishment - Design & Enabling Stage Student Experience Projects 7, ,750-7,500 DKB Lecture Theatres & Student Hub 2,050 2, ,050 Windsor Park Apartments 3,750 1,000-2,750 3,750 Lennoxvale accommodation 10,500 8,780-1,720 10,500 Botanic accommodation 2,890 2, ,890 Sans Souci accommodation Integrated Health Centre (Elmwood Manse) 1, ,350 Green Revolving Fund (GRF) Projects 1, ,241 Projects at Retention Stage 65,771 20,525 15,308 29,938 65,771 Health Sciences New Build 6,348 2,598-3,750 6,348 MBC Anatomy Wing Extension 7,900 7, ,900 Postgraduate & Executive Education Centre 13,922-6,246 7,676 13,922 Ashby Refurbishment - Phase 1 7,551 6,537 1,014-7,551 NI Composites Centre (70%) 4, ,200 4,200 Elms Village - Phase 11 14,500 14, ,500 Other retentions 3,699 2, ,699 Projects at Retention Stage 58,120 34,271 8,223 15,626 58,120 TOTAL 147,850 78,755 23,531 45, ,850

6 CAPITAL DEVELOPMENT PLAN 2013/14 to 2017/18 Schedule 2 Expenditure Programme 2013/14 to 2017/18 PROJECTS Pre 2013/ / / TOTAL Expenditure Expenditure Expenditure Expenditure Expenditure Internally Funded Projects - Minor Works ,500 2,500 Planned Maintenance - 2,082 2,000 6,000 10,082 Disability Combined Heat and Power (CHP) Projects - Main Site & Keir/Ashby 1,577 1, ,454 McClay Library Ground Floor 400 1, ,300 Biological Sciences Consolidation & Expansion of Food Sciences - Design Stage Upper Malone Pitches 1 & ,260 IAFLU Expansion Works Main Site Tower & Lynn Library - Design and Enabling stage Extension of 10 Lennoxvale for IPLS Projects < 250k 1, ,570 5,062 7,611 3,636 7,650 23,959 Wholly / Partially Externally Funded Projects - Ashby Refurbishment 3,840 3,707 3,287-10,834 Institute of Health Sciences - Centre for Experimental Medicine 3,350 10,700 8,900 1,496 24,446 Health Sciences Refurbishment - Design & Enabling Stage Student Experience Projects 4,271 2, ,500 DKB Lecture Theatres & Student Hub ,050 Windsor Park Apartments 2, ,750 Lennoxvale accommodation 209 1,137 4,097 5,057 10,500 Botanic accommodation , ,890 Sans Souci accommodation Integrated Health Centre (Elmwood Manse) 118 1, ,350 Green Revolving Fund (GRF) Projects 1, ,241 Projects at Retention Stage 17,136 21,825 20,123 6,686 65,771 Health Sciences New Build 6, ,348 MBC Anatomy Wing Extension 7, ,900 Postgraduate & Executive Education Centre 13, ,922 Ashby Refurbishment - Phase 1 7, ,551 NI Composites Centre (70%) 4, ,200 Elms Village - Phase 11 14, ,500 Other retentions 3, ,699 Projects at Retention Stage 55,725 2, ,120 TOTAL 77,923 31,832 23,759 14, ,850

7 CAPITAL DEVELOPMENT PLAN /14 to 2017/18 Schedule 3 Source of funds 2013/14 to 2017/ / / TOTAL QUB Contribution - Central University Contribution to Capital 15,300 15,300 45,900 76,500 Contribution to Planned Maintenance 2,000 2,000 6,000 10,000 Contribution from sale of land and buildings - - 1,500 1,500 Other internal contributions (Note 1) 1,112 1,087 3,220 5,419 18,412 18,387 56,620 93,419 Other Contributions - HE Capital - PGEEC HE Capital - Ashby 4,383 1,845-6,228 HE Capital - Student Experience 2, ,115 Institute of Health Sciences - CEM: UKRPIF Grant 3,643 4,952-8,595 Institute of Health Sciences - CEM: Atlantic Philanthropies contribution (Note 2) 4,519 1,375 1,961 7,855 Institute of Health Sciences - CEM: Foundation contribution 2,400 2,400-4,800 Foundation contribution to Postgraduate & Executive Education Centre ,108 11,118 2,111 31,337 TOTAL 36,520 29,505 58, ,756 Note 1:- Other internal contributions are the recurrent savings arising from energy efficiency projects and boreholes. Note 2:- The total Atlantic Philanthropies contribution is 15m. The balance of 7.145m relates to equipment.

8 Schedule 4 CAPITAL DEVELOPMENT PLAN /14 to 2017/18 Proposed Funding of Priority Projects Project Description Total Budget Internal Funds inc. Foundation DEL Capital Grants Loans & Other Total funding '000 '000 '000 '000 '000 Consolidation of Biological Sciences and expansion of Global Food Security * # 29,525 29, ,525 Main Site Masterplan Library Stack Remodelling * # 18,030 1,803 16,227-18,030 - Lynn Building 3, ,195-3,550 - MAP - Old Physics; MAP Teaching Centre; New Physics 9, ,910-9,900 - McClay Library Phase 2 and David Bates Building Refurbishment 3, ,150-3,500 - Employability and Public Realm # 4,120 2,683 1,437-4,120 - School of Education 1, ,000 Health Sciences Refurbishment # 5,425 1,245 4,181-5,425 Bernard Crossland Building Refurbishment & Extension 5,000 5, ,000 Residential Accommodation Development * 20,000 6,500-13,500 20,000 Enhancing the Student Experience * 10,000 10, ,000 DKB Refurbishment and Rationalisation * 6,000 6, ,000 Carbon Management Plan Projects * 3,000 3, ,000 Core Infrastructure Enhancement * 5,000 5, ,000 Supporting Strategic Research Priorities * 5,000 5, ,000 Supporting the Knowledge Economy * 2,000 2, ,000 Strategic Acquisitions * 1,000 1, ,000 Queen's Sport * 3,000 3, ,000 Integrated Design Centre * 1,000 1, ,000 Institue of Health Sciences - additional development 20,000 20, ,000 School of Education (Stranmillis) * 7,000 7, ,000 Total 163, ,551 38,000 13, ,050 * Approved in principle at previous Planning and Finance Committee meetings # These amounts are in addition to initial funding already approved by Capital Projects Group for design and enabling works.

9 Schedule 5 CAPITAL DEVELOPMENT PLAN /14 to 2017/18 Profiled Expenditure on Priority Projects Total Post Total budget profile Project Description '000 '000 '000 '000 '000 '000 '000 '000 Consolidation of Biological Sciences and expansion of Global Food Security * # 29, ,000 17,500 5,700-29,525 Main Site Masterplan Library Stack Remodelling * # 18,030 1,000 6,800 8,700 1, ,030 Lynn Building 3, ,000 2, ,550 MAP - Old Physics; MAP Teaching Centre; New Physics 9,900 1,400 1, ,000 4, ,900 McClay Library Phase 2 and David Bates Building Refurbishment 3, ,500 3,500 Employability and Public Realm # 4,120 1,320 2, ,120 School of Education 1, ,000 - Health Sciences Refurbishment # 5, , ,425 Bernard Crossland Building Refurbishment & Extension 5, ,000 1, ,000 Residential Accommodation Development * 20, ,400 2,600 10,000 4,800-20,000 Enhancing the Student Experience * 10, ,000 3,200 5, ,000 DKB Refurbishment and Rationalisation * 6, ,000 2,200-6,000 Carbon Management Plan Projects * 3, , ,000 Core Infrastructure Enhancement * 5,000 1,000 1,000 1,000 1,000 1,000-5,000 Supporting Strategic Research Priorities * 5,000 1,000 1,000 1,000 1,000 1,000-5,000 Supporting the Knowledge Economy * 2, ,000 Strategic Acquisitions * 1, ,000 Queen's Sport * 3, , ,000 Integrated Design Centre * 1, ,000-1,000 Institue of Health Sciences - additional development 20, ,000 19,000 20,000 School of Education (Stranmillis) * 7, ,800 1,200-7,000 Total 163,050 11,675 25,400 30,150 49,575 23,350 22, ,050 * Approved in principle at previous Planning and Finance Committee meetings # These amounts are in addition to initial funding already approved by Capital Projects Group for design and enabling works.

10 CAPITAL DEVELOPMENT PLAN /14 to 2017/18 Analysis of Capital Reserves Movements (incl. Priority Projects) 2013/14 to 2017/18 Schedule / / TOTAL Reserves Balance brought forward 78,505 75,518 64,915 Summary Source of Funds - QUB Internal Contributions (Schedule 3) 18,412 18,387 56,620 93,419 Approved External Contributions (Schedule 3) 18,108 11,118 2,111 31,337 Proposed Additional External Contributions (Schedule 4) 4,000 9,051 38,449 51,500 TOTAL FUNDS 40,520 38,556 97, ,256 Summary of Building expenditure - Approved Internally Funded Projects (Schedule 2) 7,611 3,636 7,650 18,897 Approved Wholly / Partially Externally Funded (Schedule 2) 21,825 20,123 6,686 48,635 Projects at Retention Stage (Schedule 2) 2, ,396 Proposed Priority Projects (Schedule 5) 11,675 25, , ,150 BUILDING EXPENDITURE 43,507 49, , ,077 Reserves Balance carried forward 75,518 64,915 44,684 (Note 1) Note 1: 22.9m of the closing reserves balance is committed to capital projects that have been initiated at the end of the planning period, as detailed in schedule 5.