Pipeline Projects

WQ.336/2024

WRITTEN QUESTION TO THE MINISTER FOR INFRASTRUCTURE

BY DEPUTY K.M. WILSON OF ST. CLEMENT

QUESTION SUBMITTED ON MONDAY 7th OCTOBER 2024 ANSWER TO BE TABLED ON MONDAY 14th OCTOBER 2024

Question

"Further to the meeting held in September 2024 between the Jersey Construction Council, wider construction industry representatives, and the Government regarding the Island Construction and Engineering Programme, will the Minister state –

1. the total number of construction projects that are planned for the next 5 years;
2. of these projects, how many are related to the New Healthcare Facilities Programme, and how many relate to the development of the wider Public Realm;
3. which specific projects will need external specialist contractors;
4. the total number of construction firms who are currently trading in the Island, and the total number of firms who have ceased trading in the last 5 years; and
5. the area of construction expertise of each of the firms currently trading?"

Answer

1. On 16th September 2024, Infrastructure held a joint industry briefing with the Jersey Construction Council which gave us the opportunity to introduce the concept of the Island Construction and Engineering Programme ("ICE Programme") to the local construction industry. We also used the opportunity to present the latest progress on the New Healthcare Facilities, the Liquid Waste programme and developments with the management of solid waste at La Collette. The briefing was well received by the industry, and the Department is planning follow up briefings in the new year to build on this.

The ICE Programme as presented during the briefing provided an overview of the anticipated construction and engineering sector spend by central Government, Andium Homes, the States of Jersey Development Company and Ports of Jersey, profiled across a period of time. It did not list individual projects.

At present, the ICE Programme shows that we anticipate a combined spend across all entities of approximately £880m over the next 5 years (2025 to 2029 inclusive). This figure represents approximately 100 separate engagements with companies operating in all areas of the construction and engineering sectors, through planning, design, management and delivery. This does not include the New Healthcare Facilities programme anticipated spend.

As should be expected with any complex programme involving multiple organisations, each with their own pressures as well as internal and external factors which will no doubt impact the collective ability to deliver, there is a need for a degree of caution. Therefore, I need to be clear that the figure provided represents the best available information at present. Levels of confidence across the programme inevitably vary at present. This is something we will look to address as this work is developed further.

The ICE programme is iterative and will change as our collective plans develop and evolve, and as Government and the Assembly agree and commit to delivering capital investment within defined time periods.

This is nevertheless an important conversation to commence with the industry. We have, accordingly, decided to share some aspects of the ICE Programme with the industry for our mutual benefit which we feel is especially important during these challenging times. We will look to publish revised information from the ICE Programme early in Q1 2025 once Government Plan budgets have been approved and delivery plans are more visible.

2. We are currently developing a clearer view of this within the ICE programme and will be better able to answer this early in Q1 2025 following the debate on the Government Plan and any re- programming required as a result.
3. It is not possible to identify specific projects that will require external specialist contractors with total certainty or accuracy at present, but it is highly likely that there will be some contracts awarded to off-Island companies during this period (2025 – 2029 inclusive). Importantly, there will also be many opportunities for local contractors within this period.

Central Government contract awards will be made in accordance with the requirements of the Public Finances Manual which does not discriminate positively in favour of local companies. Instead, it requires us to consider a range of criteria to identify the company that is best placed to meet the requirements of the project and that represents best value overall to taxpayers. Contribution to wider social value locally is a feature of this decision-making process.

As we develop the ICE Programme, it will provide us with the opportunity to engage earlier with supply chains to establish where skills or resource gaps may exist and to start to work better with local industry to address these in order to ensure companies are best placed to meet and deliver our capital investment requirements of the future.

We must also consider that there will be some areas of our programme that local companies may not be able to deliver due to specialism, complexity or scale. In these cases, there is significant opportunity that the local supply chain will either directly or indirectly benefit from this through subcontracting and the sourcing of local materials or expertise.

When considering the programme in its entirety, there may also be times where it would be advantageous for us as an Island to rely upon off-Island resource to alleviate pressure if and when the trading environment requires.

4. This is not information which is held by the Minister for Infrastructure or by Government.
5. This is not information which is held by the Minister for Infrastructure or by Government.