RSTS2 25 year whole life spreadsheets

Summary

A request was made for 25-year whole life spreadsheets regarding regional sewage works options for Peel, St Johns, and Central Valley. Manx Utilities Authority released some information but withheld specific budget estimates citing commercial and economic interest exemptions.

Key Facts

• The request concerned the Regional Sewage Treatment Strategy-Phase 2 (RSTS2).
• Manx Utilities is currently undertaking speculative negotiations with land owners for the project.
• Disclosure of budget estimates was refused to prevent unfair competitive advantage in land acquisition and tendering.
• The authority concluded that the risk of harm to the infrastructure programme outweighs the public interest in disclosure.
• The response was issued on 28 July 2017 following a request received on 6 July 2017.

Data Disclosed

• 25 year
• 6 July 2017
• 28 July 2017
• IM94201I
• 30(2)(b)
• 30(1)(a)
• 687687
• IM99 1PS

Exemptions Cited

• Section 30(2)(b) of the Freedom of Information Act 2015 (prejudice to commercial interests)
• Section 30(1)(a) of the Freedom of Information Act 2015 (prejudice to economic interests of the island)

Data Tables (6)

Full Response Text

Manx Utilities • PO Box 177 • Douglas • Isle of Man • IM99 1PS e: foi@manxutilities.im • t: 687687 • www.manxutilities.im

REFERENCE NUMBER IM94201I

REQUEST UNDER THE FREEDOM OF INFORMATION ACT 2015 (“the Act”)

Thank you for your online application dated 6 July 2017 requesting the following information

‘Copies o f t he 25 y ear w hole l ife s preadsheets r elating t o each e lement of a ll regional sewage works options to provide sewage treatment provision at Peel, St Johns and Central Valley’

Our aim is to provide information whenever possible and the information we are able to provide is appended to this letter. In this instance, some of the information is exempt from disclosure under sections 30(2)(b) and 30(1)(a) of the Act as its disclosure would prejudice the commercial interests of Manx Utilities and would be likely to prejudice the economic interests of the island.

Assessment of 30(2)(b)

A disclosure under the Act is deemed to be a disclosure to the world rather than a disclosure to an individual requestor.

Manx Utilities is currently undertaking speculative negotiations with land owners in order to acquire land which is crucial to the implementation of the Regional Sewage Treatment Strategy-Phase 2 (RSTS2) as set out in the Programme for Government.

Following a successful land acquisition process, future tender exercises with contracted service providers will be undertaken, which are also required for the successful implementation of the RSTS2 programme.

The commercial sensitivity of these processes requires a c autious approach. Disclosure of budget estimates relating to capital purchases will prejudice the commercial interest of Manx Utilities in that it would provide unfair competitive advantage to people with an interest in selling their land and to potential contracted service providers. This will limit the ability to achieve cost effective solutions.

Assessment of 30 (1)(a)

The most appropriate financial outcome for Manx Utilities ultimately presents the most appropriate financial outcome for Manx Utilities customers i.e. Island residents. Inability to achieve this is likely to be of detriment to Island residents as additional costs would have to be passed on to the end user.

These exemptions are qualified exemptions, and as such, are subject to the public interest test. The public interest must be something that is of serious concern and benefit to the public at large and not merely something of individual interest.

Public Interest Test

Factors in favour of disclosing the information include:

• To promote transparency of decision making in Government and the reasoning behind any decisions which are taken. • To scrutinise the actions of Government and be able to hold Government to account for its decision making. • Securing the best use of public resources.

Factors in favour of maintaining the exemptions include:

• The underlying purpose of these exemptions is to protect the economy and commercial interests. • Disclosure of t his information c ould be used to achieve individual competitive advantage. • The disclosure of this information is likely to prejudice the acquisition of land which is necessary for the successful implementation of RSTS2. • The disclosure of this information is likely to prejudice the success of future tendering processes, which are necessary for the successful implementation of RSTS2. • Progression of the RSTS2 programme has reached a critical stage and the immediate nature o f t he c ommercial s ensitivity as sociated wi th t he tendering p rocesses outweigh public interest. • Disclosure o f this i nformation wi ll not only affect M anx Utilities b ut also Island residents. • This information will ultimately reside in the public domain, at which point, it will be open to public scrutiny. • There is no evidence to suggest that disclosure of this information will serve a wider public interest.

In assessing the weight to be attributed to each aspect of these arguments, Manx Utilities has considered that disclosure of the information subject to the prejudice based qualified exemptions has the potential to cause harm to a crucial Island infrastructure programme and the associated commercial sensitivities.

Manx Utilities concludes that the risk of harm from disclosure outweighs any benefit that could be gained by the general public as a result of the information being disclosed.

Taking these considerations into account Manx Utilities has determined that t he factors in favour of mai ntaining the e xemptions o utweigh t he fac tors i n favour of d isclosing the information. Your right to request a review

If you are unhappy with this response to your Freedom of Information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post at the address or email below. An electronic and paper version of our complaint form can also be found on our website. If you would like a paper version of our complaint form sent to you by post, please don’t hesitate to let us know. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded.

If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on:

1. Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or
2. Whether we are justified in refusing to give you the information requested.

In response to an application for review, the Information Commissioner may, at any time, attempt t o r esolve a matter b y n egotiation, conciliation, me diation or an other fo rm o f alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision.

More detailed information on your rights to review is on the Information Commissioner’s website a t: www.inforights.im. Should y ou h ave an y q ueries, p lease d o n ot h esitate t o contact us.

IRIS Regional Sewage Treatment Strategy Whole-Life Costing PERCENTAGE SPLIT TABLE Discounting Calculation Region:
Option:
Discount Rate:
Note: 25 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Residual Cost Element Pre Year0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Value (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) Capital Costs Asset Life (Yrs) Capital Construction Cost Fees, 3rd Parties, Planning Costs Land cost Heavy M&E Plant (MCC, pumps & Screens) 20 116,000.00 98,600.00 Light M&E Plant (odour control, PLC, instru 10 59,000.00 59,000.00 41,300.00 Light wearing M&E Components (seals) 5 5,000.00 5,000.00 5,000.00 5,000.00 -1,000.00 Total Lifetime Capital Costs 5,000.00 64,000.00 5,000.00 180,000.00 138,900.00 Operating Costs Annual Growth STW and PS Labour Costs 2.0% 47,640.00 48,592.80 49,564.66 50,555.95 51,567.07 52,598.41 53,650.38 54,723.39 55,817.85 56,934.21 58,072.89 59,234.35 60,419.04 61,627.42 62,859.97 64,117.17 65,399.51 66,707.50 68,041.65 69,402.48 70,790.53 72,206.34 73,650.47 75,123.48 76,625.95 STW Power costs 2.0% 10,310.20 10,516.40 10,726.73 10,941.27 11,160.09 11,383.29 11,610.96 11,843.18 12,080.04 12,321.64 12,568.08 12,819.44 13,075.83 13,337.34 13,604.09 13,876.17 14,153.69 14,436.77 14,725.50 15,020.01 15,320.41 15,626.82 15,939.36 16,258.15 16,583.31 STW Telephone & telemetry Costs 2.0% 1,500.00 1,530.00 1,560.60 1,591.81 1,623.65 1,656.12 1,689.24 1,723.03 1,757.49 1,792.64 1,828.49 1,865.06 1,902.36 1,940.41 1,979.22 2,018.80 2,059.18 2,100.36 2,142.37 2,185.22 2,228.92 2,273.50 2,318.97 2,365.35 2,412.66 STW Engineering Maintenance Costs 2.0% 3,000.00 3,060.00 3,121.20 3,183.62 3,247.30 3,312.24 3,378.49 3,446.06 3,514.98 3,585.28 3,656.98 3,730.12 3,804.73 3,880.82 3,958.44 4,037.61 4,118.36 4,200.72 4,284.74 4,370.43 4,457.84 4,547.00 4,637.94 4,730.70 4,825.31 STW Sludge Disposal Costs 2.0% 117,357.23 119,704.38 122,098.47 124,540.43 127,031.24 129,571.87 132,163.31 134,806.57 137,502.70 140,252.76 143,057.81 145,918.97 148,837.35 151,814.10 154,850.38 157,947.38 161,106.33 164,328.46 167,615.03 170,967.33 174,386.68 177,874.41 181,431.90 185,060.53 188,761.75 STW Consumable Costs 2.0% 3,000.00 3,060.00 3,121.20 3,183.62 3,247.30 3,312.24 3,378.49 3,446.06 3,514.98 3,585.28 3,656.98 3,730.12 3,804.73 3,880.82 3,958.44 4,037.61 4,118.36 4,200.72 4,284.74 4,370.43 4,457.84 4,547.00 4,637.94 4,730.70 4,825.31 STW UV Costs 2.0% 2,141.73 2,184.57 2,228.26 2,272.82 2,318.28 2,364.65 2,411.94 2,460.18 2,509.38 2,559.57 2,610.76 2,662.98 2,716.23 2,770.56 2,825.97 2,882.49 2,940.14 2,998.94 3,058.92 3,120.10 3,182.50 3,246.15 3,311.07 3,377.30 3,444.84 Peel PS to new STW pumping costs 2.0% 3,097.50 3,159.45 3,222.64 3,287.09 3,352.83 3,419.89 3,488.28 3,558.05 3,629.21 3,701.79 3,775.83 3,851.35 3,928.37 4,006.94 4,087.08 4,168.82 4,252.20 4,337.24 4,423.99 4,512.47 4,602.72 4,694.77 4,788.67 4,884.44 4,982.13 Peel PS to outfall (storm costs) 2.0% 276.55 282.09 287.73 293.48 299.35 305.34 311.45 317.67 324.03 330.51 337.12 343.86 350.74 357.75 364.91 372.21 379.65 387.24 394.99 402.89 410.95 419.16 427.55 436.10 444.82 Total Effect on Operating Costs 188,323.22 192,089.68 195,931.47 199,850.10 203,847.11 207,924.05 212,082.53 216,324.18 220,650.66 225,063.68 229,564.95 234,156.25 238,839.37 243,616.16 248,488.48 253,458.25 258,527.42 263,697.97 268,971.93 274,351.37 279,838.39 285,435.16 291,143.86 296,966.74 302,906.08 Total Lifetime Operational Costs 6,032,049.05 Net Cash Flow 192,089.68 195,931.47 199,850.10 203,847.11 207,924.05 217,082.53 216,324.18 220,650.66 225,063.68 229,564.95 298,156.25 238,839.37 243,616.16 248,488.48 253,458.25 263,527.42 263,697.97 268,971.93 274,351.37 279,838.39 465,435.16 291,143.86 296,966.74 302,906.08 138,900.00 Discounted cost at discount rate of: 6.0% 181,216.68 174,378.31 167,798.00 161,466.00 155,372.94 153,034.62 143,867.93 138,438.96 133,214.84 128,187.87 157,064.99 118,695.85 114,216.76 109,906.70 105,759.27 103,736.59 97,928.04 94,232.64 90,676.70 87,254.93 136,910.27 80,793.91 77,745.08 74,811.30 32,363.51 Net Present Value (£):
Electricity power cost is based on 6p per Kwh increasing by 2% per annum from year one, all other costs are also based on an annual 2% uplift ESTIMATED DISCOUNTED CASH FLOW West Catchment:
Peel 1 STW in field 6.0% Inflation Rate:
2.0% Page 1 of 1 PERCENTAGE SPLIT TABLE Discounting Calculation Region:
Option:
Discount Rate:
Note: 25 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Residual Cost Element Pre Year0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Value (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) (£) Capital Costs Asset Life (Yrs) Capital Construction Cost Fees, 3rd Parties, Planning Costs Land cost 0.00 Heavy M&E Plant (MCC, pumps & Screens) 20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100,000.00 85,000.00 Light M&E Plant (odour control, PLC, instruments, bearings) 10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 50,000.00 50,000.00 35,000.00 Light wearing M&E Components (seals) 5 0.00 0.00 0.00 0.00 0.00 0.00 5,000.00 5,000.00 5,000.00 5,000.00 -1,000.00 0.00 Total Lifetime Capital Costs 0.00 0.00 0.00 0.00 0.00 0.00 5,000.00 0.00 0.00 0.00 0.00 55,000.00 0.00 0.00 0.00 0.00 5,000.00 0.00 0.00 0.00 0.00 155,000.00 0.00 0.00 0.00 119,000.00 Operating Costs Annual Growth STW and PS Labour Costs 2.0% 14,460.00 14,749.20 15,044.18 15,345.07 15,651.97 15,965.01 16,284.31 16,609.99 16,942.19 17,281.04 17,626.66 17,979.19 18,338.78 18,705.55 19,079.66 19,461.26 19,850.48 20,247.49 20,652.44 21,065.49 21,486.80 21,916.54 22,354.87 22,801.96 23,258.00 STW Power costs 2.0% 4,102.52 4,184.57 4,268.26 4,353.63 4,440.70 4,529.51 4,620.10 4,712.51 4,806.76 4,902.89 5,000.95 5,100.97 5,202.99 5,307.05 5,413.19 5,521.45 5,631.88 5,744.52 5,859.41 5,976.60 6,096.13 6,218.05 6,342.41 6,469.26 6,598.65 STW Telephone & telemetry Costs 2.0% 1,500.00 1,530.00 1,560.60 1,591.81 1,623.65 1,656.12 1,689.24 1,723.03 1,757.49 1,792.64 1,828.49 1,865.06 1,902.36 1,940.41 1,979.22 2,018.80 2,059.18 2,100.36 2,142.37 2,185.22 2,228.92 2,273.50 2,318.97 2,365.35 2,412.66 STW Engineering Maintenance Costs 2.0% 9,942.02 10,140.86 10,343.68 10,550.55 10,761.56 10,976.80 11,196.33 11,420.26 11,648.66 11,881.64 12,119.27 12,361.65 12,608.89 12,861.07 13,118.29 13,380.65 13,648.27 13,921.23 14,199.66 14,483.65 14,773.32 15,068.79 15,370.16 15,677.57 15,991.12 STW Sludge Disposal Costs 2.0% 23,020.07 23,480.47 23,950.08 24,429.09 24,917.67 25,416.02 25,924.34 26,442.83 26,971.68 27,511.12 28,061.34 28,622.57 29,195.02 29,778.92 30,374.50 30,981.99 31,601.63 32,233.66 32,878.33 33,535.90 34,206.62 34,890.75 35,588.56 36,300.34 37,026.34 STW Consumable Costs 2.0% 1,500.00 1,530.00 1,560.60 1,591.81 1,623.65 1,656.12 1,689.24 1,723.03 1,757.49 1,792.64 1,828.49 1,865.06 1,902.36 1,940.41 1,979.22 2,018.80 2,059.18 2,100.36 2,142.37 2,185.22 2,228.92 2,273.50 2,318.97 2,365.35 2,412.66 STW UV Costs 2.0% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Effect on Operating Costs 0.00 54,524.61 55,615.11 56,727.41 57,861.96 59,019.20 60,199.58 61,403.57 62,631.64 63,884.28 65,161.96 66,465.20 67,794.50 69,150.39 70,533.40 71,944.07 73,382.95 74,850.61 76,347.62 77,874.58 79,432.07 81,020.71 82,641.12 84,293.94 85,979.82 87,699.42 Total Lifetime Operational Costs 1,746,439.72 Net Cash Flow 0.00 2,441,564.61 55,615.11 56,727.41 57,861.96 59,019.20 60,199.58 66,403.57 62,631.64 63,884.28 65,161.96 66,465.20 122,794.50 69,150.39 70,533.40 71,944.07 73,382.95 79,850.61 76,347.62 77,874.58 79,432.07 81,020.71 237,641.12 84,293.94 85,979.82 87,699.42 119,000.00 Discounted cost at discount rate of: 3.5% 0.00 2,441,564.61 53,734.40 52,955.64 52,188.17 51,431.82 50,686.43 54,019.35 49,227.90 48,514.46 47,811.35 47,118.43 84,107.57 45,762.58 45,099.35 44,445.74 43,801.60 46,050.32 42,541.18 41,924.64 41,317.04 40,718.24 115,391.61 39,546.56 38,973.42 38,408.59 50,354.49 Net Present Value (£):
Electricity power cost is based on 6p per Kwh increasing by 2% per annum from year one, all other costs are also based on an annual 2% uplift ESTIMATED DISCOUNTED CASH FLOW West Catchment:
St Johns 1 St Johns STW 3.5% Inflation Rate:
2.0% PERCENTAGE SPLIT TABLE Discounting Calculation Region:
Option:
Discount Rate:
Note: 25 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

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