Investment Appraisal for Cardiff Innovation Campus

The request was partially successful.

Dear Cardiff University,
I am writing to request information under the Freedom of Information Act 2000, in particular I seek answers to the following questions:
Can you please confirm that you have undertaken an investment appraisal for the Cardiff Innovation Campus prior to the investment being undertaken?
If so, can you please outline the exact period in time during which such an appraisal has been undertaken?
Can you also please outline which investment appraisal techniques and criteria have been applied and what scenarios were considered?
Can you also disclose all documents that detail the investment appraisal of the innovation campus and also any follow up studies monitoring the progress of the investment relative to the initial appraisal.

Yours faithfully,

Martin Weinel

InfoRequest, Cardiff University

Dear Martin

I acknowledge receipt of your email received by this office on 8 January 2019 in which you requested information regarding the Cardiff Innovation Campus.

Your request will now be dealt with under the Freedom of Information Act 2000 and has been allocated reference FOI19-007 which should be quoted in all correspondence. We will respond to your request within 20 working days starting the next working day after receipt, therefore you can expect to receive a response no later than 5 February 2019.

Where we consider that we will not be able to meet this deadline or if further time is required to consider the public interest test we will contact you as soon as possible and give you a revised date for response.

In some circumstances a fee may be payable and, if that is the case, we will let you know. A fees notice will be issued to you, and you will be required to pay before we will proceed to deal with your request.

Yours sincerely

Gail Thomas
Swyddog Sicrwydd
Adran Cynllunio Strategol a Llywodraethu
Prifysgol Caerdydd
2il Lawr, Friary House
Heol y Brodyr Llwydion
Caerdydd
CF10 3AE
Ffôn: +44 (029) 2087 5327
Ebost : [email address]  

Mae'r Brifysgol yn croesawu gohebiaeth yn Gymraeg neu'n Saesneg. Ni fydd gohebu yn Gymraeg yn creu unrhwy oedi.
Gail Thomas
Assurance Officer
Strategic Planning and Governance
Cardiff University
2nd Floor, Friary House
Greyfriars Road
Cardiff
CF10 3AE
Tel: +44 (029) 2087 5327
Email: [email address

The University welcomes correspondence in Welsh or English. Corresponding in Welsh will not lead to any delay.

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InfoRequest, Cardiff University

Dear Martin

 

I am writing in response to your Freedom of Information request dated 10
January 2019 in which you requested information regarding the Cardiff
Innovation Campus.

 

For ease of reference, I have reproduced your questions below and set out
our corresponding responses.

 

1.       Can you please confirm that you have undertaken an investment
appraisal for the Cardiff Innovation Campus prior to the investment being
undertaken?

2.       If so, can you please outline the exact period in time during
which such an appraisal has been undertaken?

3.       Can you also please outline which investment appraisal techniques
and criteria have been applied and what scenarios were considered?

4.       Can you also disclose all documents that detail the investment
appraisal of the innovation campus and also any follow up studies
monitoring the progress of the investment relative to the initial
appraisal. 

 

In line with the University’s Project Management framework business cases
were developed including an investment appraisal of the preferred option. 
Investment appraisals have been undertaken at each stage of the process
from the initial Feasibility Study undertaken in 2015.  This underpinned
the Business Case approved by Council in July 2015. 

 

The Business Cases have subsequently been reviewed, updated and refreshed
at key periods since:

 

•            May 2017: Updated business cases presented to University
Executive Board, Policy and Resources Committee and University Council

•            October 2018: Updated paper presenting a revised and updated
Net Present Value (NPV), further clarity on the forecasted income and
associated risks to repaying of the capital investment and discounted
cash-flow following changes to the expected completion date. Paper
submitted and approved by Portfolio Scrutiny Group, University Executive
Board, Policy and Resources Committee, Investment and Banking Group and
University Council.

 

As set out in the University’s Project Management framework guidance, the
business cases included an option analysis of possible solutions including
doing nothing.  The criteria for assessing the options included academic
and financial considerations.  The investment appraisal technique used was
Net Present Value. An IRR calculation, to show the rate of return on
investment for the programme as a whole, was also produced.

 

 

The disclosure of papers under FOI is considered on the basis that they
are released into the wider public domain, therefore consideration must be
given to how any party might use this information, not simply the party to
whom the information is being disclosed. The papers requested have been
marked as confidential which indicates that the content is considered  to
be of a sensitive nature and sets expectations about the restricted
distribution of the information.

 

The University considers that the documentation is exempt from disclosure
under Section 43(2) of the Freedom of Information Act 2000.  The papers
give significant insight into the University’s strategy of improving the
infrastructure for supporting research excellence, innovation and
enterprise.  The University considers that it needs to be able to develop
proposals and plans which can be reviewed by the University executive in
order to discuss and analyse the potential options.  Releasing detailed
information on how investment appraisals are undertaken and reviewed would
give insight into the concepts considered by Cardiff University.  There is
a real risk this information could influence both public and private
competitors’ strategies to the detriment of the University.  The
University is operating in an environment where it needs to differentiate
itself from its competitors in the same way as a private business and
therefore should be allowed to develop its plans with an element of
confidentiality.

 

Consideration of likely prejudice

 

In order to apply, the exemption requires that a public interest test be
considered and this is documented below:

 

Public Interest Test

 

Factors in favour of disclosure

 

Openness and Transparency - it is in the public interest that the
University, as a public authority, is as open and transparent in the way
it operates as possible including decisions around its opportunities for
strategic development. 

 

Factors in favour of non-disclosure

 

Commercial Interests - it is not in the public interest to inhibit the
ability of the University to develop its commercial operations and to
differentiate itself from competitors by disclosing information that would
undermine its ability to develop its competitive offering and which would
reduce its ability to compete equally in the market.

 

Efficiency and effectiveness – it is not in the public interest to
disclose information that would erode the efficiency and effectiveness of
the organisation by damaging its ability to develop and openly discuss
concepts and options available for potential commercial development. The
Higher Education sector is increasingly reliant on developing commercial
opportunities in light of reductions in central funding and its continuing
effectiveness relies on being able to develop such opportunities in
camera.     

 

Given the above, it is considered that it is in the greater public
interest to withhold the information from disclosure at this time.

 

I trust this information satisfies your enquiry.  The University has a
Freedom of Information Complaints Procedure should you feel dissatisfied
with this response or the way in which your request was handled.
Complaints must be made in writing and must set out why you believe the
University has not met its obligations under the Freedom of Information
Act.  You may email your complaint to [email address] where it
will be forwarded to the Director of Strategic Planning and Governance who
will be responsible for overseeing the review.

 

If you remain dissatisfied following the outcome of your complaint, you
have the right to apply directly to the Information Commissioner for
consideration.  The Information Commissioner can be contacted at the
following address: Information Commissioner's Office, Wycliffe House,
Water Lane, Wilmslow, Cheshire, SK9 5AF.

 

I would like to take this opportunity to thank you for your interest in
Cardiff University. If you require further assistance please feel free to
contact me.

 

Yours sincerely

 

 

Gail Thomas

Swyddog Sicrwydd

Adran Cynllunio Strategol a Llywodraethu

Prifysgol Caerdydd

2il Lawr, Friary House

Heol y Brodyr Llwydion

Caerdydd

CF10 3AE

Ffôn: +44 (029) 2087 5327

Ebost : [email address]  

 

Mae'r Brifysgol yn croesawu gohebiaeth yn Gymraeg neu'n Saesneg.  Ni fydd
gohebu yn Gymraeg yn creu unrhwy oedi.

Gail Thomas

Assurance Officer

Strategic Planning and Governance

Cardiff University

2nd Floor, Friary House

Greyfriars Road

Cardiff

CF10 3AE

Tel: +44 (029) 2087 5327

Email: [email address

 

The University welcomes correspondence in Welsh or English.  Corresponding
in Welsh will not lead to any delay.

 

 

 

 

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