The boiler regime at the
Pilgrim Hospital, Boston was 40 years old and at the end of its
life. The heavy oil system was neither sustainable nor efficient in
terms of carbon emissions. The Trust was keen to adopt a proactive
approach to seeking a solution that would ensure the provision of
electricity, heating and hot water supplies whilst simultaneously
reducing carbon emissions, utilising sustainable fuels sources as
far as possible.
The Trust commissioned technical
reports to identify a solution in partnership with the Carbon
Trust. Capita Symonds was commissioned to author the resulting
business case for the provision of a new energy centre at the
Pilgrim Hospital site. In consultation and agreement with the
Strategic Health Authority, the Business Case was designed to be a
combined Outline Business Case (OBC)/Full Business Case (FBC).
The paper took into account the review
of conclusions reached within a previous Feasibility Report and the
generation of a more detailed preferred option, following
completion of the of OJEU procurement process. The project was
pursued on the basis of a public private partnership (PPP) approach
to re-provision of the Pilgrim Hospital’s energy centre via a
managed service provider, utilising a biomass boiler technical
solution. The document therefore demonstrated the process
undertaken to arrive at a preferred technical solution and service
provider.
The challenge
One of the challenges presented by
this commission was the time limited grant available from
Lincolnshire County Council. In order to take advantage of the
grant the FBC needed to be produced in order to enable the scheme
to be approved by the Trust Board and progressed within 12
months.
During the course of developing the
business case, capital funds became available from the DoH/Carbon
Trust ‘Energy and Sustainability Fund.’ This enabled the Trust to
revisit the financing of the preferred technical solution. In order
to establish the relative costs and benefits of utilising the DoH
Energy and Sustainability Fund and associated affordability
implications, further analysis was carried out by Inventures and
included within the business case in order to arrive at a preferred
financing method for the agreed technical solution.
The solution
Capita Symonds took the following
approach to working with the client:
- Collation/review of background
information of the project including previously completed financial
analysis, non financial benefit appraisal and technical appraisal
on the agreed assumption that their financial information was
deemed accurate
- Validation of information/discussions
with key personnel
- Setting out of available information
in FBC format, amending and authoring as required
- Agreement with the Trust on the
affordability position to be presented in the FBC
- Drafting and incorporating comments
as required
The benefits
Capita Symonds produced a health
related business case that exceeded the Trust Board’s expectations,
met the Strategic Health Authority’s requirements and enabled the
Trust to maintain their overall project programme. The business
case gained all necessary approvals and has now been implemented –
with the energy centre about to be commissioned for use.
As technical authors to the project,
Inventures also reviewed financial analysis provided by others and
using experience gained in the public sector, we were able to
advise on affordability implications for the use of public dividend
capital available via the Energy and Sustainability Fund.
The commission has led to a repeat
commission to author the Trust’s Carbon Management implementation
Plan under the auspices of the Carbon Trust NHS Carbon Management
Programme.