fra 2014 half yearly quarterly annual report

Period Ending June 2014

Half Yearly Report

1

From the CEO

1. SNAPSHOT – BY THE NUMBERS

7,818km - Unsealed roads graded

Over 158,000 - Potholes filled

148,000m2 - Sealed road pavement repairs

104km - of water tables cleaned

2,215m - New culvert pipes installed

152,000 m3 - Gravel applied to unsealed roads

2,270km - of line markings

11km - of road reconstruction

61km - of road resealed

OVERALL PERFORMANCE: Budget v Actual

At the end of June the budget for the first half of the year ($224m) was 89% spent ($200m). The main

projects where there has been under-expenditure ($24m) in the year to date are:

- Bridges’ and Jetties’ Renewals $6.5m

- Qarani Jetty Construction $2.7m

- Swani-Serea $2.4m

- Buca Bay $2.8m

- NASRUP Nadi – Wailoaloa to Denarau $5.0m’

The situation as it applies to each project is explained in the Financial Report. (See Page 8)’

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2. INTRODUCTION

The business of the FRA can be viewed as 3 main ‘streams’ of activity, Corporate, Asset Management and

Operations, as noted below;

Corporate: Managing the business, developing polices and standards, corporate governance practices, relationships etc. Focussed on ensuring FRA is established as an accountable, transparent and sustainable entity delivery quality outcomes for government.

Asset Management:

Long term planning for the sustainability and integrity of the roading network to deliver required outcomes. Focussed on development of 10 year work programmes and financial forecasts.

Operations: Implementation of the annual plan, including investigations, studies, design, procurement and construction. Focussed on successful delivery of the current year’s work programme.

The key highlights, achievements and issues related to each stream of activity are presented below. More

detail on specific aspects of the business are provided in the remainder of the report.

3. CORPORATE ACTIVITY STREAM

The first half of 2014 has been focussed on completing the appointment of staff within FRA. There have

been appointments to administrative and technical roles and looking towards the second half there are

perhaps four positions remaining to be filled. In most cases these should be able to be selected from local

applicants.

Divestment of the FRA Laboratories is a core objective for 2014 and the first half of the year saw the

‘expression of interest’ stage carried out. This resulted in a shortlist of prospective purchasers who will

commence due diligence in the 3rd quarter with a view to inviting formal proposals and finalising a sale

before the end of the year.

A highlight for the first half of the year was also completion of the first real Annual Report for FRA as a stand-

alone entity. The previous (2012) Annual Report documented the transition from DNR to FRA whilst the

2013 report (available at www.fijiroads.org) reports on FRA’s inaugural year. The audited financial

statements record a minor qualification that results from a lack of available data related to road asset

valuations.

FRA internal policies and procedures continue to be developed and updated as areas for improvement are

identified.

4. ASSET MANAGEMENT ACTIVITY STREAM

The Asset Management Plan is the central document where all the planning for the road network comes

together. This presents a 3 year detailed work programme and budget, with a further 7 years outlined to

show general direction. Future iterations of the plan will see this planning horizon extend to 20 years and

beyond.

The heart of asset management is knowledge of the current state of the assets, agreement an what we are

trying to achieve (business objectives and desired levels of service), and what needs to be done to get the

assets from their current state to the desired state. Data collection is progressing to obtain the knowledge we

need to determine the current state. FRA’s GIS-based asset information system is progressing and

continually seeing more information added – including data sharing arrangements with other agencies such

as the Fiji Police.

http://www.fijiroads.org/

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2013 saw a comprehensive assessment of the nation’s bridges undertaken and this was followed up in the

first half of 2014 with a complete inspection of all jetties. The results of these inspection programmes are

very concerning. They show there is potentially a billion dollar backlog of required replacements or major

repair works.

Another current important task is our involvement as part of a multi-agency working group liaising with Asian

Development Bank and World Bank to develop a revised Land and Maritime Transport Policy and 20 year

investment plan.

5. OPERATIONS ACTIVITY STREAM

Maintenance works across the country have progressed in a timely fashion although issues with aggregate

(gravel) supply continue to plague the Northern Division. Exhaustive efforts have been put into getting

sufficient quantities and quality of aggregates however the process for obtaining approvals is complex and

time consuming. It is likely that achievement targets in the North will suffer again this year because without

adequate supply of raw materials it is simply not possible to undertake the amount of reseals and road

rehabilitation we would like to.

Maintenance works in the West and Central divisions are progressing according to programme and it is

evident after the first 6 months that all of the maintenance contractors are developing the necessary

knowledge of their networks to anticipate problem areas, and develop appropriate maintenance regimes.

The Central and Western maintenance and renewals programmes are well underway and are progressing

according to plan.

The Nadi and Suva Road Upgrade Project (4-laning) is progressing with three out of five work packages

awarded to contractors and work getting underway. We expect to have significantly increased visibility in

these areas in the 3rd quarter and will be looking to complete the tender process for the final two work

packages to allow those to be awarded.

Other major capital projects are proceeding and the details are provided in a later section of this report. Of

particular note is the Nabouwalu – Dreketi road improvements project which has already greatly improved

travel times between Nabouwalu and Labasa.

6. LEGACY ISSUES AND RISKS

Most of the legacy issues FRA inherited are resolved or are well in hand. A highlight for 2014 has been the

compensation payments to Mataqali Matinikorovatu related to non-payment of royalties for the Nasinu

Quarry over a period of many years.

We have finalised most payments related to the receivership of Blacktop Construction Limited and this has

brought relief to those creditors who were left with unpaid debts.

As mentioned earlier a key risk to achievement of our programme, particularly in the North, is the availability

of sufficient quantities of aggregate for basecourse and sealing chip. FRA is working with the contractors and

the industry but it remains a risk that lack of supply may hamper completion of the full programme of work.

FRA is undertaking studies into aggregate supply and will also be looking at how we can make more

effective use of local materials.

By far the largest risk in front of us though is the condition of bridges and jetties. The sheer amount of work

required to make these assets safe and fit for purpose is staggering and will require dedicated effort from

FRA and commitment from government to resolve over the next 5-10 years.

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7. LOOKING FORWARD – FOCUS FOR QUARTER 3

The key focus areas for the next quarter are:

Corporate: Complete appointment of remaining 4-5 staff positions.

Substantially progress the Laboratories divestment.

Asset Management: Finalise the Asset Management Plan

Develop the 2015 work programme and budget submissions.

Finalise a report on the Jetties’ condition.

Provide necessary input to assist finalisation of a new Land Transport

Policy and 20 year investment plan for the country.

Operations: Substantially complete the renewals programme (reseals/rehabilitation)

Continue to address aggregate supply issues particularly in the North.

Pay continuing attention to pothole repairs and access improvements to

rural areas.

Get the bridge renewals programme underway.

Ensure substantial progress on the Nadi and Suva Road Upgrade

Project (4-laning)

8. CONCLUDING REMARKS

The first half of 2014 has been much less frantic than 2013. The lessons learned in 2013 have been put into

practice and the momentum from 2013 has been maintained. Significant improvement is evident across the

country and not a week goes by without more work being completed that improves the standard of living for

another community.

FRA’s goal of being transparent and accountable in our stewardship of public funds is being realised through

the publication of our Annual Reports for 2012 and 2013 and the public availability of these via our website.

We have always stated that this is a long term process; the problems we face that have developed over

decades will take 5-10 years to be rectified. But the work that has been achieved in the 18 months FRA has

been in operation is evidence that if the momentum is maintained we will achieve what we set out to achieve

and that is a world standard roading network that benefits all Fijians.

Neil Cook

Chief Executive

Date: 22 July 2014

5

KEY PERFORMANCE INDICATORS

The following Key Performance Indicators (KPI) are from FRAs approved 2014 Corporate Plan.

Goal Performance Target Progress

1. Governance

1.1 Submit the Half-Yearly Report to the Minister not later than 30 July 2014.

Achieved

1.2 Prepare the 2014 Annual Report by 31 March 2015. Achieved (and published 28 May 2014)

1.3 Adopt the Corporate Plan and Statement of Corporate Intent for 2015 before 31 December 2014.

Achieved

1.4 Clarify the FRA’s Legislative and Regulatory Responsibilities. (Amendments required to the Local Government Act and several other Acts as a result of enactment of the Fiji Roads Authority Decree).

To be addressed during the fourth quarter 2014

1.5 Finalise a Memorandum of Agreement with the Maritime Safety Authority Fiji (MSAF) about the two parties’ respective responsibilities re the management of jetties.

To meet with MSAF shortly

1.6 Review how well the arrangement with the Ministry of Provincial Development for the development and management of roads on the outer islands is working and update the Memorandum of Understanding.

Some difficulties. Following discussions in June there has been some improvement. A revised MoU is to be negotiated for 2015.

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1.7 Adopt a strategy and the future maintenance and management approach for the jetties that the FRA is responsible for (including a detailed maintenance and renewals programme).

45 jetties identified for which the FRA is responsible. Detailed inspections carried out for 37. The development of a long term programme isn’t possible until the exact condition and status of all is known. A draft maintenance and renewal programme for 2014 based on existing knowledge has been prepared.

1.8 Ensure the Municipal Councils’ MOAs are operating satisfactorily. Significant problems being experienced. Several Councils haven’t paid the contributions due. The matter has been reported separately to the Board.

1.9 Ensure provable progress is made re the FRA’s key objective to upskill the local workforce at all levels – FRA Management, MWH (the FRA’s Professional Engineering Services Advisers) and the Maintenance Contractors.

Comprehensive up-skilling and training programmes being provided by the FRA, MWH, Fulton Hogan – Hiways and Higgins. An overall record is being maintained.

1.10 Complete a plan for divestment of the FRA’s laboratories business by 31 March 2014 – and subsequently achieve the required actions by the target dates stated in the plan.

Achieved. See the CEO’s comments (Section 3).

2. Technical

2.1 Significantly improve data quality across the Board (including robust roads’ and bridges’ inventories).

Progressing – An asset register is being compiled but this is a significant task that won’t be completed to a stage where there are only minor completeness and accuracy deficiencies, until probably the end of 2015.

2.2 Adopt a new Roads’ Classification System. Underway. Expect to be able to report to the Board in October.

2.3 Establish a programme for review of the technical standards and ensure the work agreed for 2014 is completed.

Priorities agreed. To complete a review of the PWD standards for interim use by December, the proposed World Bank/ADB Investment Project ($200M) will also include a requirement that the design and construction standards be revised to incorporate climate change adaption considerations and reflect current international standards for road geometry, pavements, drainage, and associated structures.

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2.4 Adopt a new Subdivision and Development Policy. Planning and Development Officer to commence employment with the FRA this month (July). To address soon.

2.5 Identify on a map the exact rural roads that the FRA has taken responsibility for (and their status).

Will be substantially achieved by September and complete by the end of the year.

2.6 Identify the sufficiency of the current controls regarding overweight, over-width and over-length vehicles.

The FRA is actively working with the FRA and Fiji Police to better manage overloading issues on the roads. All request to the LTA for over-width, over-length and over-weight permits require FRA approval before the permit will be granted.

3. Financial

3.1 Identify potential alternative sources of funding for discussion with Government and other affected stakeholders.

Still to address.

3.2 Achieve the revenue results forecasted in the Laboratories Business Plan.

At $1.08M actual revenue for the first six months was close to the forecast ($1.14M). However higher than budgeted maintenance costs means the profit to date is $174,485 compared with the forecast of $370,610.

4. General Management

4.1 Update the Asset Management Plan to meet the timeframes for the 2015 budget submissions.

Being updated now.

4.2 Complete the annual review of the ‘Operations’, ‘Staff’ and’ Risk Management’ manuals.

Achieved.

4.3 Refine the performance measures and targets at all levels and ensure the necessary monitoring and reporting processes have been implemented and continue to be managed effectively – with prompt action being taken when the results aren’t as intended.

Still to be addressed.

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Financial Report

9

FIJI ROADS AUTHORITY

Statement of Performance for the period ending 30 June 2014

ACCOUNT Funding Source

Original Budget (Full)

Revised Budget 27.05.14

Total Expenditure

YTD

Comments /Ideas for controlling costs

MANAGEMENT

Salaries 6 2,416,774 2,130,410 879,548

Other Costs

(a) Recruitment 6 20,000 20,000 14,982 Contractual sum of $2,500 per month. The

shortfall will be met from savings in other lines e.g. Rent and legal fees.

(b) Accounting and Finance (including Audit Fees) 6 75,000 75,000 24,600 Engagement of internal auditors to check and verify processes

(c) Vehicles’ Hire and Operation 6 36,000 36,000 42,370 Increase in the vehicle fleet as a number of project vehicles were transferred to FRA. All the vehicles had to go under repairs. The

shortfall will be met from savings in other areas such as rent and legal costs.

(d) Office Expenses – Power, Travelling etc. 6 309,550 309,550 185,985

(e) Rent 6 178,080 178,080 3,043 No invoice yet received from FNPF. Still unsure what would be the rental charges.

(e) Legal Fees 6 150,000 150,000 19,302 There is not much expectations of any major legal expenses apart from involvement in lab divestment.

(f) Insurances 6 163,000 163,000 92,153

(g) Archives – Storage 6 6,396 6,396 10,775 Contracted sum of $1,500per month.The shortfall will be met from savings in other areas and budget need to be revised.

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Total Expenditure

YTD


(h) Communications (including website) 6 130,000 130,000 119,092 There was increased cost in this area due to installation of complaints management system and its support services. A saving is expected

in Data Improvements allocation which would be used to meet any shortfalls.

(i) Data Improvements 6 50,000 50,000 26,492

(j) Asset Management Improvements 6 100,000 100,000 64,339

(k) Training and Development 6 203,200 203,200 26,260 Due to delay in recruiting staff there will be expected surplus, however this will be used to

cover deficit in other areas

(l) Establishment Costs 6 60,000 60,000 9,426

(m) Contingencies 6 150,000 150,000

(n) Realised Gain/Loss 6 17,924

Value Added Tax (VAT) 244,684 244,684 95,823

Total - Management 4,292,684 4,006,320 1,632,114

Funded By:

Government Grant - Operating 6 4,048,000 3,761,636 1,536,291

Government Grant - Capital 10

Municipal Councils MC

Loan Fund DP

Value Added Tax (VAT) VAT 244,684 244,684 95,823

TOTAL 4,292,684 4,006,320 1,632,114

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Total Expenditure

YTD


PROFESSIONAL AND TECHNICAL SERVICES

Professional Services (Management Activities) 6 2,700,000 2,700,000 2,723,281 All program management and associated

costs have been charged to this account as an interim measure. They are to be reallocated next month to the specific projects on which

work was done.

Tax Expenses - WHT 10 4,000,000 1,960,327

Asset Management System and Data Maintenance and Improvement

6 1,000,000 1,000,000 330,969

Historical Claims 6 6,300,000 6,300,000 2,698,662

Blacktop Creditor's 2,700,000 2,929,057

Release of Retentions (Historic) 6 2,961,000 2,961,000

Municipal Council Loans Repayment & Loan Interest MC 2,000,000 2,000,000

Quarries 6 15,352

Laboratories’ 6 100,000 74,000 (174,323)

Value Added Tax (VAT) 1,929,316 2,607,059 1,298,332

Total - Professional and Technical Services 16,990,316 24,342,059 11,781,657

Funded By:


Government Grant - Capital 10 6,700,000 4,889,384

Municipal Councils MC 2,000,000 2,000,000

Loan Fund DP

Value Added Tax (VAT) VAT 1,929,316 2,607,059 1,298,332

TOTAL 16,990,316 24,342,059 11,781,657

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Total Expenditure

YTD


MAINTENANCE

Sealed Roads – Pavements and Surfaces 10 25,876,522 26,700,064 14,085,013 158,000 potholes filled and 147,894m2 of

sealed road pavement repaired. Approximately $1.5M reallocated to unsealed roads in the North. Savings from this will be transferred to

environmental maintenance.

Sealed Roads – Pavements and Surfaces MC MC 2,403,478 2,403,478 Costs for Municipalities are not split in claims. Over $9M of work undertaken on Council

roads to date this year but are allocated within other budgets.

Unsealed Roads – Pavements and Surfaces 10 9,000,000 13,000,000 9,401,777 Over expenditure expected in North for unsealed road maintenance to deal with the higher need there. To be offset by under

spend on sealed roads.

Traffic Services (Signs and Road Markings etc.) 10 7,353,000 3,353,000 1,880,281 2270km of road markings completed and routine traffic signs maintenance undertaken

Street Lights - Power Charges 10 3,300,000 3,300,000 707,814

Street Lights - Maintenance 10 940,000 1,870,000 1,673,549 Additional work undetaken following board

approval of increase in budget. This was needed because of the extremely poor condition of streetlights. Majority of Remaining

work will be allocated to renewals.

Traffic Lights 10 453,000 453,000 174,053 Additional work undertaken following board approval of increase in budget. This was

needed because of the extremely poor condition of traffic signals.

Environmental Maintenance 10 1,698,000 1,698,000 1,330,672 Mowing and roadside spraying being undertaken throughout sealed roads. Savings

from sealed road pavement and surfaces will be transferred to this line.

Bridges and Structures 10 4,000,000 4,000,000 1,883,416 Minor routine repairs completed and more

than 10 significant repairs complete.

Fees - Bailey Bridge 34

Fees - Bridge Inspections 550,000 425,418

Fees - Repairs 450,000 43,127

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Total Expenditure

YTD


Physical Works 3,000,000 1,414,837

Jetties 10 1,000,000 1,600,000 742,492

Cicia Jetty works completed - All jetties

inspected and other works programmed for second half of 2014.

Fees 350,000 185,873

Physical Works 1,250,000 556,619

Drainage 10 4,000,000 4,000,000 2,911,877 103.6km of water channels completed

Other Government Agencies 10 500,000 250,000 113,909 Works undertaken for health, school, police

and corrections.

Professional Services 10 3,300,000 3,300,000 1,906,098

Investigation and Independent Verification Testing 10 500,000 250,000 73,843


Total - Maintenance 73,973,000 76,344,173 42,657,516

Funded By:

Government Grant - Operating 6

Government Grant - Capital 10 61,920,522 63,774,064 36,884,792


Loan Fund DP


TOTAL 73,973,000 76,344,173 42,657,516

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Total Expenditure

YTD


FLOOD DAMAGE

Emergency Response Contingency 10 8,696,000 Emergency Contingency budget insufficient to

fund the network repairs resulting from the weather events in Jan and Feb this year. Additional funds arebeing sourced from

elsewhere in the program.

Nabukavesi 10 1,000,000 533,708 Completed.

January 2014 event 1,750,000 778,611 Work substantially complete

Cyclone Kofi 5,000,000 5,645,733 Immediate restoration works completed. Significant drainage work in Namosi and slip

remediation on Kings Rd yet to do.

Bavu 180,000 119,620

Nayawa 250,000 233,066 Complete

Yadua 60,000 Complete

ADB Flood Rehabilitation

(a) Land Stabilisation Lomoloma Slip Progress was slow in the first half of the year

due to bad weather and material sourcing issues. Expected to pick up in the second half of the year. Completion date September 2014.

· ADB Share DP 1,552,000 1,852,000 1,880,000

· Local Share 10 2,755,000 2,755,000 563,437

(b) Rakiraki Bridge

On track. Dust suppressant road sealing on the Rakiraki bypass completed. Foundation

works started.

· ADB Share DP 1,555,000 3,955,000 2,000,000

· Local Share 10 4,513,000 3,513,000 899,887

(c) Fiji Water Authority Works

· ADB Share DP 1,512,000 1,512,000

· Local Share 10 4,751


Total - Flood Damage 23,671,000 24,003,200 14,003,273

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Total Expenditure

YTD


Funded By:




Loan Fund DP 4,619,000 7,319,000 3,880,000


TOTAL 23,671,000 24,003,200 14,003,273

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Total Expenditure

YTD


RENEWALS AND REPLACEMENTS

Sealed Roads 10 39,596,522 38,084,985 20,258,566 11km of sealed road rehabilitated and 61km of

sealed road resealed to date, vs 34km and 100km respective KPI's. North contract has not yet commenced any renewals due to

aggregate issues.

Sealed Roads MC 2,403,478 2,403,478 Costs for Municipalities are not split in claims. Over $9M of work undertaken on Council

roads to date this year but are allocated within other budgets.

Unsealed Roads’ Resheeting 10 11,000,000 11,000,000 10,580,462 151,489m3 gravel laid on unsealed roads to

date. Over 130km of unsealed roads resheeted vs 110km in KPI

Unsealed Roads’ Rehabilitation 10 13,000,000 13,000,000 693,677 The majority of contracts has been awarded -

however aggregate supply issues may impede progress in the second half of 2014.

Traffic Services (Signs and Road Markings etc.) 10 750,000 250,000 199,064 Replacement of signs throughout Fiji

Street Lights 10 600,000 1,250,000 295,640 Additional work to be undertaken following board approval to increase in budget. More than 6000 street lights need to be renewed in

the next two to three years. Majority of renewal works to occur in Q3 and Q4

Traffic Signals 10 800,000 800,000 369,105 Satisfactory progress renewing lights at Makosoi and Nabua

Drainage 10 2,274,000 2,274,000 1,650,931 2.2km of culverts replaced

Service Reinstatment and Renewals 10 2,000,000 500,000 252,307 WAF, FEA, TFL reinstatement and renewals completed in association with renewals

Other Government Agencies 10 1,000,000 500,000 235,022 Works undertaken for health, school, police and corrections.

Professional Services 10 3,000,000 3,000,000 683,848

Investigation and Independent Verification Testing 10 500,000 250,000 13,557


Total - Renewals and Replacements 88,463,000 84,309,332 40,517,006

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Total Expenditure

YTD


Funded By:




Loan Fund DP


TOTAL 88,463,000 84,309,332 40,517,006

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Total Expenditure

YTD


RENEWALS AND REPLACEMENTS - Bridges & Jetties

Bridges Renewal Heading 29,000,000

Bridges Renewal 28,000,000

Nasau Crossing 296,335 Completed. Over expenditure due to revised design work

Nakorosule 224,123 Construction commenced. Slow start which

may impact delivery timescales.

Togo Lavusa 64,627 Construction progressing well.

Vutuni 1 35,546 Contract award expected in July

Masi 73,383 Construction progressing well.

Vutuni 2 64,005 Contract award expected in July

Vuadomo 99,325 on track, construction commenced

Vanuakula 53,476 Contract tendered but no suitable tenders received. Deferred to 2015. Remaining budget to be reallocated to other crossings.

Wainalimu 207,216 Investigation and design for construction in the future

Tadraca 21,999 Investigation and design for construction in the future

Namuavoivoi 62,753 Contract award expected in July

Matewale 3,046 Investigation and design for construction in the future

Nabena 54,640 Tender process ongoing

Vaturamulo 6,237 Investigation and design for construction in the future

Balenabelo 4,043 Investigation and design for construction in the future

Vorovoro 898 Investigation and design for construction in the

future

19




Total Expenditure

YTD


Sote Crossing 9,226 Investigation and design for construction in the future

Saliadrau Crossing 3,097 Investigation and design for construction in the

future

Waivaka 49,081 Contract award expected in August

Rabaraba 3,489 Investigation and design for construction in the future

Nakama Crossing 43,831 Investigation and design for construction in the future

Abaca 3,682 Investigation and design for construction in the future

Drauniivi 2,688 Investigation and design for construction in the future

Nadelei 42,857 Investigation and design for construction in the future

Waimari 45,910 Investigation and design for construction in the future

Wauosi 1,795 Investigation and design for construction in the future

Laqere 730 Investigation and design for construction in the

future

Kadavu crossings & bridge 1,126 Investigation and design for construction in the future

Namulomulo 634 Investigation and design for construction in the future

Babriban 262 Investigation and design for construction in the future

Bavu 318 Investigation and design for construction in the

future

Bukuya Investigation and design for construction in the future

Balili Investigation and design for construction in the future

Buabua 2 Investigation and design for construction in the future

Raiwaqa 634 Investigation and design for construction in the future

20




Total Expenditure

YTD


Precast Unit Supply 896,202 Supply underway

Renewals work by Contractors 501,110 construction of bridge timber deck renewals

by FHH and Higgins progressing well.

Bailey Component Supply 90,268 Contract developed for tender

Inspection Fees 482,021 Bridge inspections are currently underway of about 100 bridges on Viti Levu and Vanua

Levu.

Survey & Geotech Investigations - Fees 526,390 Geotech drilling undertaken for the Four Long and Six Short Bridge Design & Build contracts

Nasese Bridge 88,840 Design options being reviewed. Construction planned for 2015.

Vatuwaqa Bridge 64,877 Investigations and concept design progressing. Chinese Government funding

construction.

Stinson Parade Demolition 79,260 Demolition and service relocation only.

Chinese Government funding design and construction.

Identification & Design of 2015 Bridges 15,609 Initial work commenced

Chinese Grant Projects Stinson & Vatuwaqa 34,594 Initial liaiason with Chinese consultant going

well. Chinese preliminary design underway

Armco Culvert Replacements Sites identified for investigation in late 2014

Management Fees 947,914

Denerau Managment Fees 3,724 MoU underway between the Fiji Govt and Denarau Corporation for bridge funding

Erasito - Fees 58,783 Technical support on bridge projects by

Erasito

Four Large Bridge

Tender process ongoing. Construction planned

for 2015/2016

Vunidilo 61,666

Vunivaivai 65,124

Lomawai 1 69,799

Logeloa FSC 1 18,967

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Total Expenditure

YTD


Four Large Bridge Total 215,555

Seven Small Bridges

Tender process ongoing. Construction planned for 2015/2016

Wainisusu 38,444

Vumabox 37,579

Market 114,553

Savu 4 40,762

Navaca 58,333

Naisogo 47,577

Naganivatu 133,852

Seven Small Bridges Total 471,100

Subtotal - Bridges 29,000,000 28,000,000 5,956,527 A number of contracts are close to being awarded which will accelerate the spend on Bridge renewals. This is being managed at

Programme level and reviewed each month by senior staff.

Jetties Renewal

Jetties Renewal Budget 10 20,000,000 3,450,000

Natovi 2,650,000 1,914,879 Roll on Roll Off work almost completed

Oinafa Dredging 1,200,000 1,210,539 Complete

Yasawa-I-rara 2,700,000 1,023,743 Work started on site

Cicia 33,142 Causeway renewal underway

Koro 20,513 Causeway renewal to commence in July

Nawaikama Jetty - Gau- ID 3071J 7,430 Investigation and design for construction in the future

Totoya Jetty -Totoya Island-3041J 941 Investigation and design for construction in the

future

Investigations 108,518

Complete Inspection Programme - Fees 346,002

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Total Expenditure

YTD


Urgent Renewals 27,549 Investigation and design for construction in the future

Identification & Design of 2015 Jetty Programme 15,646 Work progressing well

Management Fees 1,084,450

Subtotal - Jetties 20,000,000 10,000,000 5,793,353


Total - Renewals and Replacements 56,350,000 43,700,000 13,512,362

Funded By:




Loan Fund DP


TOTAL 56,350,000 43,700,000 13,512,362

23




Total Expenditure

YTD


NEW CAPITAL

SAFETY IMPROVEMENTS (DECADE OF ROAD SAFETY)

Village Treatments 10 313,000 550,000 476,442

Galoa Village Completed

Traffic Management Plans 10 130,000 130,000 16,155

Study to commence in August.

Safety Audits 10 130,000 130,000 62,226

Safety Audit Report to be finalised end July.

Black Spots’ Improvements 10 474,000 474,000 53,427

Design and site selection completed.

Construction work planned for November 2014.

Route Action Plans 10 187,000 187,000 164,178

Guard rail designs completed. Installation

progressing well.

Mass Action Plans 10 504,000 504,000 300,243

Safety signpost implementation to complete end July.

Subtotal - Safety Improvements 1,738,000 1,975,000 1,072,671

Access Improvements & Economic Stimulation

New Rural Roads 10 8,696,000 12,696,000 3,076,221 The majority of the Contracts for this work have been awarded. A combination of aggregate supply and Contractor capability

problems may slow progress

School and Health Access 10 1,435,000 1,435,000 316,539 Programme due for completion in August (9 schools and 4 health centres)

Jetty’s 10

Valaga Bay Jetty 10 4,087,000 487,000 189,016 Phase 1 completed under budget. Phase 2 to

commence in October

24




Total Expenditure

YTD


Qarani Jetty (Gau) 10 2,348,000 11,180,000 1,337,244 Design Build Contract awarded. On track.

Savusavu Waiting Shed 10 104,000 190,000 100,361 Design completed. Construction to commence

in August if land issues are resolved

Taveuni Waiting Sheds 10 104,000 18,000 2,592 Progressing

Mid Point 10 870,000 28,300 2,977 Deferred. Remaining funds to be allocated to other work programs

Rehabilitation of King's Roads 589,000 57,067

Contract awarded. Completion due October

(a)(i) King's to Lodoni - Nadaro to Korovou (Blacktop)

• Loan

• Local Share 9,000

(a)(ii) King's to Lodoni - Nadaro to Korovou (New Contract)

• Local Share 1,598,095 550,000

• Blacktop Bond 1,144,446

• Blacktop Retentions 567,459

(b) Naqia & Wainiboa Bridges

Project Completed

• Loan 175,643 175,643

• Local Share 340,000 25,000

(c) King's to Lodoni - Wailotua to Nayavu

• Loan 2,533,457 2,533,457

• Local Share 510,000 5,000

(d) Kings to Lodoni - Waito to Wailotua

• Loan

• Local Share 315,000 5,000

(e) King's to Lodoni - Gravel

25




Total Expenditure

YTD


• Fairdeal Metal Supply Extras 307,500

(f) Emergency Flood Recovery Project (WSC 69/11)


(g) Regravelling of Lokia, Koronivia & Toga Roads (WSC 150/11)


(h) Fiji Road Rehabilitation Project (WSC 09/10)


(i) Regavelling of Nadarivatu to Monasavu Road


Sawani/Serea Road

Overall 40% complete to date. Package 1

complete

• Loan DP 14,230,000 15,136,000 4,400,000

• Local Share 10 5,406,000 4,291,019 1,884,674

Works Local Share 2,508,768 1,350,000

Risk Contigency 150,000

Escalation 700,000 100,000

Utilities Relocation 200,000

Land Purchase 232,278 236,483

Engineering Fees 421,174 169,393

Investigation and Independent Verification Testing 78,799 28,799

Buca Bay I and II

Issues with contractor performance have delayed the project. Package 1 now

programmed for completion end of August

• Loan DP 17,508,000 17,508,000 4,500,000

• Local Share 10 10,500,000 7,500,000 2,302,217

Works Local Share 4,250,311 500,000

26




Total Expenditure

YTD



Escalation 2,164,194 1,300,000

Utilities Relocation


Engineering Fees 794,763 428,507

Investigation and Independent Verification Testing 46,333 42

Personnel Cost 26,333

Sigatoka Valley Road

Project completed under budget. Remaining

funds to be allocated to other work programs.

• Loan DP 3,925,700 350,000

• Local Share 10 3,838,000 2,447,348 811,825

Works Local Share 550,000

Risk Contigency

Escalation 1,527,848 800,000


Land Purchase 2,325

Engineering Fees 350,000


Moto Road

Completed

• Loan DP

• Local Share 10 680,000 680,000 648,825

Works Local Share

Risk Contigency

Escalation 617,000 610,000


27




Total Expenditure

YTD



Engineering Fees 50,800

Nabouwalu - Dreketi

Progressing well. Construction of 13 bridges commenced and progressing well. Formation

constructed for 90% of project. Pavement Construction Underway.

• Loan DP 60,706,000 50,465,200 31,100,000

• Local Share 10 1,757,000 6,000,000 2,783,695

Works Local Share 50,000


Escalation 2,000,000 1,868,000


Land Purchase 300,000

Engineering Fees 2,721,204 886,897

Personnel Cost


Subtotal - Acesss Improvements & Economic Stimulation 132,858,000 141,655,667 57,157,354

Community Amenity Improvements 10

Seal Extensions in Villages 10 1,435,000 1,435,000 Work to start in July

Peri-Urban Footpaths 10 339,000 339,000 40,600 Work to start in Aug. Design complete

Urban Footpaths (incl. Kerb and Channel) 10 1,304,348 199,870 Nasinu sites identified. Contract award due in July with construction to commence shortly after.

Street Light 10 339,000 339,000 3,227 LED lighting technology introduced as part of this project. Contract awarded and installation

to start in August.

Subtotal - Community Amenity Improvements 2,113,000 3,417,348 243,696

28




Total Expenditure

YTD


Congestion and Capacity Improvements

Greater Suva Urban Improvements

Intersection Improvements 10 1,000,000 500,000 399,608 Completed

Traffic Lights Improvements 10 722,000 1,222,000 198,802 Installation completed. Final commissioning on track for July

Transportation Study Review 10 609,000 609,000 218,182 Study to be finalised in July

Lami Town By Pass Investigations 10 543,000 43,000 3,147 Deferred to 2015. Remaining funds to be reallocated

Kings Road - Samabula - Nakasi Improvements 10 652,000 652,000 279,067 Works at Makoi intersection substantially complete. Contract to be awarded in July for

further works.

Kings Road - Street Lighting 10 261,000 261,000 65,259 Installation to commence in July

Khalsa Road Improvements 10 500,000 500,000 35,681 Design on track. Site programmed for road rehabilitation in 2015

Princes Road Improvements 10 500,000 300,000 891 Improvement study report underway. Section

of pavement to be rehabilitated in 2015

Davuilevu Road Improvements 10 435,000 435,000 35,499 Design on track. Site programmed for road rehabilitation in 2015

Ratu Dovi Road - Investigation and Design 10 1,826,000 76,000 77,792 Deferred to 2015.

CBD/FBM

Subtotal - Congestion and Capacity Improvements 7,048,000 4,598,000 1,313,929

General Improvements

Queens and Kings Road Speed Limit Increase Program 10 374,000 374,000 1,021 2014 surveys completed. Limit speed signage

proposed changes to be discussed with LTA and Police.

Queens and Kings Road Passing Opportunity Improvements 10 539,000 539,000 6,762 Sites identified and work planned in second half of 2014.

29




Total Expenditure

YTD


Sigatoka to New Project Start 10 91,000 91,000 10,699 Investigations completed. Scoping report due August.

Nausori Airport Extension 10 1,635,000 5,518 5,518 On hold dependent on Airport Authority development plans. Remaining funds to be reallocated

Nadi - Lautoka 10 478,000 478,000 1,250 More detailed Transportation Study to be scoped and tendered late 2014

Labasa By Pass 10 548,000 548,000 More detailed Transportation Study to be

scoped and tendered late 2014

Nasouri to Airport (NASRUP Suva 1) 10 15,843,000

Project split into three contracts, two contracts

awarded the third is being considered in July. Service relocations have slowed project start. Acceleration of works expected in the second

half of 2014.

Contract Amount 8,884,089 2,325,000

Risk Contigency

Escalation


Land Purchase

Engineering Fees 1,105,919 1,226,918

Personnel Cost 9,992 13,322

Subtotal - Nasouri to Airport (NASRUP Suva 1) 15,843,000 10,000,000 3,708,240

Samabula to Nasinu Four Laning (NASRUP Suva 2) 10

Contract Amount 6,000,000 3,100,006

Risk Contigency

Escalation


Land Purchase

Engineering Fees 2,000,000 30,045


30




Total Expenditure

YTD


Subtotal - Samabula to Nasinu Four Laning (NASRUP Suva 2)

8,000,000 3,280,373

Nasinu to Nausori Four Laning (NASRUP Suva 3) 10

Contract Amount 7,000,000

Risk Contigency

Escalation


Land Purchase

Engineering Fees

Subtotal - Nasinu to Nausori Four Laning (NASRUP Suva 3) 7,000,000

Subtotal General Improvements 19,508,000 27,035,518 7,013,863

Tourism, Amenity and Access Improvements

Pre-feasability Study, Viti Levu Cross-Island Highway 10 100,000 100,000 2,213 Study is underway - scoping report to be

delivered by end September

Nadi Wailoaloa to Denerau (NASRUP Nadi 1) 10 30,130,000

Project split into 2 contracts. First section

contract awarded and service relocations underway. Tender process for second contract is progressing.

Contract Amount 19,171,339 3,425,000

Risk Contigency

Escalation

Utilities Relocation 487,624 1,237,624


Engineering Fees 1,381,221 1,699,512


Subtotal - Nadi Wailoaloa to Denerau (NASRUP Nadi 1) 30,130,000 21,267,209 6,606,866

Nadi Airport to Wailoaloa Four Laning (NASRUP Nadi 2)

Contract Amount 7,997,815

31




Total Expenditure

YTD


Risk Contigency

Escalation


Land Purchase 608 608

Engineering Fees 747 747

Personnel Cost 830 2,221

Subtotal - Nadi Airport to Wailoaloa Four Laning (NASRUP Nadi 2)

8,000,000 3,576

Signs and Information 10 122,000 122,000 77,846 This year's focus is on Nadi area. Installation commenced in May.

Rest Areas 10 357,000 357,000 3,234 Sites identified, deisng reports and lay out plans completed.

Seal Extension Investigations and Implementation 10 42,000 42,000 Pre feasibility reports to commence in June.

Subtotal - Tourism, Amenity and Access Improvements 30,751,000 29,888,209 6,693,734

Risk Reduction, Resilience and Asset Preservation

Flood Damage Risk Reduction 10 1,609,000 1,609,000 263,974 Ovalau Circular Road project. 5 sites to be tendered in 2014. Inspection of Parts of

Queens, Kings and Transinsular Rd completed and 3 resilience sites to be scoped in 2014 for construction in 2015.

New Weigh in Motion Weight Stations 10 757,000 757,000 35,975 Identification of sites progressing. Construction of Site 1 planned for late 2014.

32




Total Expenditure

YTD


Climate Change Adaptation and Policy Development and Implementation

10 300,000

Subtotal - Risk Reduction, Resilience and Asset Preservation

2,666,000 2,366,000 299,949


Total - New Capital 212,318,000 228,617,717 76,486,096

Funded By:

Government Grant - Operating



Loan Fund DP 92,444,000 89,744,000 43,059,100

Local Government 1,304,348 199,870

Blacktop related Funds 1,711,905


TOTAL 212,318,000 228,617,717 76,486,096

MANAGEMENT 6 4,292,684 4,006,320 1,632,114

PROFESSIONAL AND TECHNICAL SERVICES 6 16,990,316 24,342,059 11,781,657

MAINTENANCE 10 73,973,000 76,344,173 42,657,516

FLOOD DAMAGE 10 23,671,000 24,003,200 14,003,273

RENEWALS AND REPLACEMENTS 10 88,463,000 84,309,332 40,517,006

RENEWALS AND REPLACEMENTS Bridges & Jetties 10 56,350,000 43,700,000 13,512,362

NEW CAPITAL 10 212,318,000 228,617,717 76,486,096

33




Total Expenditure

YTD


TOTAL 476,058,000 485,322,802 200,590,023

Funded By:




Loan Fund DP 97,063,000 97,063,000 46,939,100

Local Government 1,304,348 199,870

Blacktop related Funds 1,711,905


TOTAL 476,058,000 485,322,802 200,590,023

34

Appendix 1 – List of Historical Claims

Company Amount Claimed

Authorised and Paid

Pending/ Unauthorised

Comments

Blue Gas 2,295.66 2,295.66 Lack of documentation. Claim declined

Bula Earthworks 2,579.06 2.00 Paid

BW Holdings 300,000.00 300,000.00 Awaiting engineer's certification

CMF Church 1,412.50 4.00 Paid

Coastal Development 19,418.48 19,418.48 - Paid

Connect 112.45 6.00 - Paid

Consort Shipping 720.00 720.00 Lack of documentation. Claim declined

Dayal Quarries 378,820.50 378,820.50 Awaiting engineer's certification for release of retention

FEA 2,580.62 2,580.62 - Electricity bills paid

FIRCA 1,501.60 1,501.60 - PAYE deduction

Government Printing 5,906.75 11.00 Paid

Hiway Stabilizers 966,963.36 12.00 Paid

Hume Industries 17,137.55 17,137.55 Lack of information

Hussein Plant Hire 28,134.54 6,522.73 Paid

Imaging Technology 314.55 314.55 - Paid

Industries Safety & Civil Limited 17,940.00 16.00 - Paid

Intercontinental Consultant 20,589.00 20,589.00 Awaiting engineer's certification

Jagdish Prasad 3,886.31 18.00 - Unpaid invoices

Jale Fotofoli 6,000.00 6,000.00 - Compensation claim with Land Valuerr for assessment

Jope Tawake 596.00 596.00 - Compensation claim with Land Valuer for assessment

K. Lal & Sons 5,369.80 5,347.80 - Unpaid invoices

Keshos Plant Hire 3,151.24 1,962.67 Paid

Khan's Hire Plant 1,200.00 1,200.00 Lack of documentation

Ledua Transport 5,976.43 5,976.43 - Paid

Mataqali Sasa 525.00 525.00 - Paid

Maxi Plant Hire 11,892.50 26.00 - Paid

Mobile Crane Hire 254,367.38 33,603.38 220,764.00 Supplier to provide additional information

Namena Tikina Council 110,000.00 10,000.00 100,000.00 Compensation claim with Land Valuer for assessment

National Hire 13,800.00 29.00 - Unpaid invoices

Orica Fiji Ltd 9,676.50 9,676.50 - Lack of documentation

Pacific Pipiline 1,163.64 1,163.64 Claim Declined. No basis for claim of Vat increase

Pacific Quality Cleaners 73,542.58 72,571.20 - Paid

Pastoral Company 17,359.10 17,359.10 - Paid

Paulini Vosarogo 3,330.00 34.00 1,080.00 Paid

35

Company Amount Claimed

Authorised and Paid

Pending/ Unauthorised

Comments

Quality Quarries 5,000.00 5,000.00 No record of tender bond received. Awaiting advice from MOF and MOW

Quarry Landowner's 1,600,000.00 - Paid

Ramesh Crane Hire 16,029.01 16,029.01 - Paid

Renus Hire 5,772.93 5,772.93 Paid

Roughton 250,000.00 126,496.48 Paid

SCA Hygiene 42.87 42.87 - Unpaid invoices

SCC 65,133.02 65,133.02 Lack of documentation

Standard Concrete 6,700,000.00 6,700,000.00 Dispute need to be resolved

Suva Bookshop 308.80 308.80 - Paid

Technix Bitumen 7,000.00 7,000.00 - Paid

Telecom Fiji 67,846.50 44,909.20 Paid

TF Jan 2,547,074.75 2,547,074.75 Awaiting engineer's certification

Trucking Supplies 43,792.08 43,792.08 Lack of documentation. Claim declined

Valebasoga Quarries 4,426.80 4,426.80 - Paid

Varata Civil Engineering 2,967.00 2,010.00 957.00 Paid

Viti Civil Contractors 3,280.00 3,280.00 Lack of documentation

Vuksich & Borish 10,325.55 10,325.25 0.30 Paid

Vuksich & Borish 4,336,093.51 4,336,093.51 Momi Bay Development Decree 2012 disallow any claim

Waimanu Trucking 60,412.00 60,052.50 359.50 Lack of documentation

TOTALS $ 18,013,767.92 $ 471,487.90 $ 14,745,460.51

fra 2014 half yearly quarterly annual report

Documents