Financials
Funding
An Operating Agency, set up as a Charitable Company,
limited by guarantee will oversee the design and build of the
University of the Oceans through an operating subsidiary,
which will also manage the ship in service. The procurement
cost of £80m will be found through a programme of fund
raising. This includes all procurement costs up to entry into
service of the vessel in a scheduled time of three years from
agreement to proceed. Any surplus not retained for
operational use will be passed to an endowment fund for
distribution as directed by the Trustees.
Assumptions
Financial projections have been based on the following principal assumptions and accounting policies:
- No interest will be paid on deposits.
- All goods are paid for at time of purchase.
- Depreciation is charged on a straight line basis over 30 years.
- Construction will not start until necessary funds are raised or legally pledged.
Build costs
The table below shows the overall project costs for the three
year build phase, including management, pre-delivery and
entry into service costs. The ship will be constructed after
preliminary design is completed under a fixed price contract,
with a shipbuilder subject to performance guarantees with
stage payments made in accordance with key milestone
events such as vessel launch. All figures are multiplied by
1,000.
Specification & procurement
£300
Construction supervision
£1,300
Pre-delivery costs
£2,700
Revenue
All figures are multiplied by 1,000.
Exhibition & seminars
£750
Operating costs
The costs allowed for are comprehensive, covering ship’s
staff (including leave allowance and pensions), food and
amenities, repairs, maintenance, dry docking (every 30
months), insurance premium (including loss of earning),
management fees, communications and fuel costs. All are
based on a first class commercial ship operation. All figures
are multiplied by 1,000.
N.B. The above figures are an overview of very detailed and rigorous examination of the costs involved in the University of the Oceans.
A business plan is available from davidbawtree@universityoftheoceans.com
The project should run at a small profit & all surplus will be used for trainee bursaries.