COURTS BUNDLE PPP PROJECT MARKET LAUNCH DAY

Kilkenny Courthouse, 13th May 2014

WELCOME AND OVERVIEW BRENDAN RYAN CHIEF EXECUTIVE OFFICER, COURTS SERVICE

Introduction & Opening address

Introduction by Mr. Brendan Ryan, CEO of the Courts Service

Address by the Hon. Mrs. Justice Susan Denham, Chief Justice

Courts Bundle PPP Project Overview

Paul Burns, Head of Infrastructure Services Directorate, Courts Service

Courts PPP Bundle Procurement Overview

Damian Duffy, Senior Project Manager, NDFA

Philip Ryan, Senior Financial Analyst, NDFA

Overview

COURTS BUNDLE PPP PROJECT INTRODUCTION BRENDAN RYAN CHIEF EXECUTIVE OFFICER, COURTS SERVICE

COURTS BUNDLE PPP PROJECT ADDRESS BY THE HON. MRS. JUSTICE SUSAN DENHAM, CHIEF JUSTICE

COURTS BUNDLE PPP PROJECT PROJECT AND SITE OVERVIEW PAUL BURNS HEAD OF INFRASTRUCTURE SERVICES DIRECTORATE, COURTS SERVICE

Department of Justice & Equality:

Sanctioning Authority

Courts Service:

Sponsoring Authority and End User

NDFA:

Contracting Authority and State’s Financial Advisor

The Roles of the Parties

Courts Service Act 1998:

Courts Service established November 1999

Courts Service mission is:

“To manage the courts, support the judiciary and provide a high-quality and professional service to all users of the courts”

Courts Service functions are:

to manage the courts

to provide support services for the judges

to provide information on the courts system to the public

to provide, manage and maintain court buildings

to provide facilities for users of the courts

Courts Service

We want our court buildings to support the administration of justice, to allow us to provide quality services to court users and to present an appropriate image of the courts to the public

Since 1999 significant investment has been made in providing new and refurbished court facilities: one of the most recent was Kilkenny

These have been procured both through traditional capital procurement and by way of Public Private Partnership in the case of the Criminal Courts of Justice in Dublin

A major rationalisation of smaller venues has also taken place

The availability of appropriate facilities for all court users with separate circulation routes is an important feature of courthouse design and operation

The designs produced by the Office of Public Works for the 7 projects address these requirements

In the 7 locations covered by the Courts Bundle, the existing court facilities are poor and in need of significant improvement, in both capacity and in the availability and standard of facilities

Courts Service Building Programme

SITE OVERVIEW

*Areas are indicative

Location Courthouse Buildings Total * Area (m2)

Letterkenny, Co. Donegal

A new courthouse to accommodate four courtrooms and associated facilities to be constructed on a town centre site close to the existing courthouse

5,027

Drogheda, Co Louth

A new courthouse consisting of two courtrooms and associated facilities to be constructed on a landmark town centre site adjacent to the river Boyne

1,354

Mullingar, Co. Westmeath

The refurbishment and extension of the existing historic courthouse in Mullingar to accommodate three courtrooms, improved custody facilities, court offices and associated facilities.

3,320

Limerick City

A new criminal courthouse to be built on a site adjacent to Limerick Prison, to include six courtrooms, custody facilities, court offices and associated facilities

7,609

Project Scope

*Areas are indicative

Project Scope cont’d

Location Courthouse Buildings Total * Area (m2)

Wexford Town

The refurbishment and extension of an existing landmark building to provide a new courthouse for Wexford Town consisting of four courtrooms, custody facilities, court offices and associated facilities

4,680

Waterford City

The refurbishment and extension of the existing historic courthouse in Waterford to accommodate six courtrooms, improved custody facilities, court offices and associated facilities.

6,392

Cork City

The refurbishment and extension of the existing landmark courthouse building at Anglesea Street to accommodate six courtrooms, improved custody facilities, court offices, the regional office and associated facilities.

8,490

Totals 36,872

SITE DRAWINGS AND PERSPECTIVES

DESCRIPTION

NEW COURTHOUSE TO ACCOMMODATE FOUR COURTROOMS AND ASSOCIATED FACILITIES TO BE CONSTRUCTED ON A TOWN CENTRE SITE CLOSE TO THE EXISTING COURTHOUSE.

AREA 5,027M2

LETTERKENNY COURTHOUSE High Road, Letterkenny, Co. Donegal

DESCRIPTION

NEW COURTHOUSE CONSISTING OF TWO COURTROOMS AND ASSOCIATED FACILITIES TO BE CONSTRUCTED ON A LANDMARK TOWN CENTRE SITE ADJACENT TO THE RIVER BOYNE.

AREA 1,354M2

DROGHEDA COURTHOUSE Wellington Quay, Drogheda, Co. Louth

DESCRIPTION

NEW COURTHOUSE TO ACCOMMODATE THREE COURTROOMS AND ASSOCIATED FACILITIES. THE DEVELOPMENT WILL CONSIST OF AN EXTENSION TO THE REAR AND SIDES OF THE EXISTING COURTHOUSE, AND ADAPTATION OF THE EXISTING BUILDING.

AREA c3,320 sq.m.

MULLINGAR COURTHOUSE Mount Street, Mullingar, Co Westmeath

DESCRIPTION

NEW CRIMINAL COURTHOUSE TO BE BUILT ON A SITE ADJACENT TO LIMERICK PRISON, TO INCLUDE SIX COURTROOMS, CUSTODY FACILITIES, COURT OFFICES AND ASSOCIATED FACILITIES.

AREA 7,609M2 (INCL. 259M2 REFURBISHMENT)

LIMERICK COURTHOUSE Mulgrave Street, Limerick City

DESCRIPTION

NEW COURTHOUSE TO ACCOMMODATE FOUR COURTROOMS AND ASSOCIATED FACILITIES TO BE CONSTRUCTED ON THE SITE OF THE EXISTING MUNICIPAL OFFICES AT WYGRAM PLACE, AND ADAPTATION OF THE EXISTING MUNICIPAL OFFICES BUILDING.

AREA c4,680 sq.m.

WEXFORD COURTHOUSE Wygram Place, Davitt Road North, Wexford, Co. Wexford.

DESCRIPTION

REFURBISHMENT AND EXTENSION OF THE EXISTING HISTORIC COURTHOUSE IN WATERFORD TO ACCOMMODATE SIX COURTROOMS, IMPROVED CUSTODY FACILITIES, COURT OFFICES AND ASSOCIATED FACILITIES.

AREA 6,392M2 (INCL. 1,798M2 REFURBISHMENT)

WATERFORD COURTHOUSE Catherine Street, Waterford

DESCRIPTION

REFURBISHMENT AND EXTENSION OF THE EXISTING LANDMARK COURTHOUSE BUILDING AT ANGLESEA STREET TO ACCOMMODATE SIX COURTROOMS, IMPROVED CUSTODY FACILITIES, COURT OFFICES, THE REGIONAL OFFICE AND ASSOCIATED FACILITIES.

AREA 8,490M2 (INCL. 1,556M2 REFURBISHMENT)

CORK COURTHOUSE Anglesea Street, Cork City

Planning

The planning scheme for the Project in accordance with Part 9 of the Planning and Development Regulations 2001 to 2013.

Part 9 planning approvals have been obtained for all sites.

Licence to occupy site

All sites to be vacated by Authority prior to contract award and licence provided in accordance with contract for PPP Co. to execute contract.

Design Intent

Drawings to be included as appendix to Schedule 3 (Works Requirements)

Outlines Courts Service requirements in terms of inter alia layouts and adjacencies

Project Details

PROCUREMENT OVERVIEW DAMIAN DUFFY SENIOR PROJECT MANAGER, NDFA

NDFA Act 2002:

NDFA established January 2003

Acts as the State’s Financial Adviser for all public investment projects greater than €20 million in value (PPP & Non PPP)

NDFA (Amendment) Act 2007:

Role expanded to be the procurement & delivery authority for PPP Projects, excluding local authority and transport PPPs

Currently progressing the procurement of some €2.25 billion worth of PPP projects within the education, justice and health sectors.

NDFA manages the process through procurement and construction to Service Commencement (“turnkey”)

NTMA (Amendment) Bill 2014:

Establishment of ISIF / Statutory basis for NewEra / Streamline NTMA Corporate Structures

National Development Finance Agency

Status of PPP Stimulus Programme

Building Project

Tender notice published

Expressions of Interest received

Tenders

Schools Bundle 4

Schools Bundle 5 ITN Q2 2014

GDA-DIT PPP ITN Issued

Primary Health Care ITN Q2 2014

Courts Bundle PPP 12 June 2014 ITN Q3 2014

Garda (Police) PPP Withdrawn: to progress with direct Exchequer funding

The Authority’s Project Team for the Project consists of:

Project & Procurement Management NDFA

Financial Advisor NDFA

Legal Advisor McCann FitzGerald

Insurance Advisor Willis

Technical Advisors

Architect/Planner Office of Public Works

Civil & Structural Engineering RPS

Mechanical, Electrical & ICT Office of Public Works

PSDP Office of Public Works

Quantity Surveyor Cyril Sweett

End user representation Courts Service

Authority Project Team

Pre-Procurement phase – Courts Service

Suitability for PPP procurement reviews

Outline Business Case

Policy issues and land title due diligence

Design Intent in development

Part 9 planning obtained

Output Specification preparation

Public Sector Benchmark (incl. Affordability Test)

Site Surveys e.g. Geotechnical /Topographical /Archaeological

Procurement Process and Programme

Procurement phase – National Development Finance Agency

Procurement in accordance with Directive 2004/18/EC and S.I. 329 2006

Courts Bundle PPP Project is being procured by means of the Negotiated procedure

Prior Information Notice published in OJEU on 8th April 2014

Pre-Qualification process commenced with Contract Notice publication in the OJEU on 17th April 2014 (closing date for submissions is 12th June 2014)

Invitation to Negotiate (ITN) and Project Agreement documentation all well advanced.

Procurement process, ITN and Project Agreement will follow a similar format to that of recent Projects i.e. Schools Bundle 3 PPP and also that being used on the more recent Stimulus Package PPPs (SB4&5 / Grangegorman-DIT).

Social and employment clauses to be included / Initiatives for SMEs i.e. Meet-the-Buyer

BIM will be a requirement for Project delivery but modelling will not be required during the Tender phase.

Procurement Process and Programme

Summary of anticipated procurement procedure and indicative timescales:

Stage 1: Pre-Qualification of 3 Candidates (17 weeks):

Stage 2: Consultation Period (c. 22-24 weeks): Issue ITN (c. September 2014)

ITN stage submissions & consultation meetings (Technical and Legal/Financial)

Submit Tenders (c. March 2015)

Stage 3: Tender Evaluation and PT Period (target 6 months) Tender evaluation and Preferred Tenderer appointment Secure Funding

Proceed to Financial Close and Contract Award (Q4 2015)

Overall duration target – 20 months

Procurement Process and Programme

Part 9 planning in place for each site, tenderers to adhere to same

Design Intent provided outlining layouts and adjacencies

Use of self-declarations in prequalification submissions

Reduced level of detail required to be submitted at Tender

E.g. Issue common elements once

Tender Cost Reimbursement provision

Policy decision agreed by Government in December 2012 - Reimbursement of part-tender costs for all tenderers in event of project cancellation - Reimbursement of part-tender costs to unsuccessful tenderers (with compliant tender)

Initiatives to reduce Tender Cost

OVERVIEW OF DEAL STRUCTURE AND FUNDING PHILIP RYAN SENIOR FINANCIAL ANALYST, NDFA

25 year Design Build Finance & Maintain PPP Contract

Standard risk allocation

PPP Co. remunerated by a monthly Unitary Charge paid by the Courts Service

Construction contract value estimated at circa Ex VAT €120m

Construction and Availability risk passed to PPP Co.

No payment of unitary charge until construction is completed and services commence

Availability Based deductions

Service Performance deductions

Exception of Latent Defects on existing structures

Change in Law to reflect PF2 developments

Overview of Deal Structure

25 year service period, expected to include all aspects of

Caretaking & Porterage

Cleaning

Building & asset maintenance

Waste Management

Pest Control

Security (passive)

Energy management

Grounds maintenance

Life cycle replacement (Fixtures, Fittings, Building)

IT cabling and infrastructure

Facilities Management

CEB / ISIF funding possibilities

Up to 50% of debt funding

Subject to final approval

Authority term sheet envisaged at Tender evaluation stage

Debt funding finalised in PT stage

Authority open to bank debt and institutional funding solutions

deliverability and value for money key considerations

No government equity participation envisaged

Funding

Concession period of 25 years from Service Commencement Date

Method of Payment

Unitary Charge

Paid monthly

Construction and Availability risk passed to PPP Co.

No payment of unitary charge until construction is completed and services commence

Availability Based deductions

Service Performance deductions

Payment Mechanism

Part 9 planning in place

Design Intent setting out Authority requirement

Tender cost reimbursement arrangements

Potential funding solutions available

Contract Notice issued 17 April 2014 – Submissions due 12 June 2014

Queries to QueryPPPCourtsPQQ@ntma.ie

NDFA Website > Tender Competitions : Project Information and Market Updates

Closing Comments

Q & A