Item 8 - Glasgow City Region City Deal - Update
West Dunbartonshire Council · 28 August 2024
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer (Regeneration and Regulatory) Council: 28 August 2024 Subject: Glasgow City Region City Deal - Update 1. Purpose 1.1 To note the progress with the implementation of the Exxon Infrastructure Project and approve a Change Control Request, and to provide an update on Glasgow City Region City Deal Programme. 2. Recommendations 2.1 It is recommended that Council: i) Notes the update on the Exxon Infrastructure Project; ii) Approves a Change Control Request to vary the construction programme dates be submitted to Glasgow City Region for approval; and iii) Notes the progress of the Glasgow City Region programme 3. Background 3.1 The Glasgow City Region City Deal Infrastructure programme equates to £1.13bn of investment during period 2015-2035. Projects are progressing and have reached various stages from Strategic, Outline and Full Business Case stages of approval. 3.2 At the meeting of Council on 20 December 2023, Council agreed to delegate authority to the Chief Officer – Regulatory and Regeneration to agree the construction agreements with Balfour Beatty Civil Engineering Ltd and Network Rail and such ancillary agreements as may be required to deliver the works, all in line with the approved budget. 4. Main Issues 4.1 This report provides information on City Region progress, and includes an update on the Exxon site infrastructure project development. Exxon Infrastructure Project 4.2 It was previously reported to Council that the Esso remediation works were to be completed by the first week of June. Since then the Regulators have asked Esso to undertake additional remediation at the quay, which has added a few weeks to their programme. These delays, which have been ITEM 8
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outside the Council’s control, have had an impact on the commencement of the main infrastructure programme. The additional remediation work is anticipated to be completed by early August, with a period of environmental reporting to follow. The estimated land transfer of the formal Esso site is now mid-September 2024. 4.3 All other required land acquisitions and temporary access agreements have now been agreed in principal. The main construction contract will be signed when these are concluded and the land from Esso is transferred to the Council. Balfour Beatty will need up to 8 weeks after receiving the contract to mobilise for site start, meaning that commencement of construction will be in mid-November. Some early enabling works on land outwith Esso’s current ownership, site clearance and archaeological surveys, are expected to begin in September. 4.4 With a site start in November 2024, project completion would be expected in July 2027, however we are discussing with Balfour Beatty an earlier phased handover of part of the site in late 2026, should this be required. 4.5 The changes to the dates of the construction programme will require a Change Control Request to be approved by Glasgow City Region following August’s Council meeting. City Region Update 4.6 A Glasgow City Region Cabinet Meeting was held on 11 June. Cabinet agreed that the recommendation to UK Government be that the sectoral focus of the Glasgow City Region Investment Zone is Advanced Manufacturing and Precision Engineering. The Investment Zone will bring £160m of investment into the City Region through a combination of capital funding and tax relief over 10 years from 2025.This decision on sectoral focus is favourable to West Dunbartonshire as the only Stage 2 bid that was submitted from the Council area was an Advanced Manufacturing Maritime development. Prior to the report to Cabinet, the Stage 2 bids had been evaluated by the City Region Programme Management Office, the Intelligence Hub and a Strategic Assessment Panel to determine the preferred sectoral focus. The bids have also been ranked according to compliance with the objectives of the Investment Zone. The ranking has not yet been made public and is expected to be disclosed following agreement with the UK Government. With a new UK Government in place, there have been some inevitable prolonged timescales for decision-making, however we are being advised by UK Government civil servants that the direction of Investment Zone is not expected to change. 4.7 As previously reported to the Council there is approximately £120m of funding being made available across the Region due to the reprogramming of City Deal, and specifically the transferring of responsibilities of the Glasgow Airport Rail Link to Clyde Metro. Half of the funding is proposed to be spent on helping meet inflation costs for existing City Deal projects, including the Exxon Infrastructure Project. UK Government had previously requested that the remaining £60m be spent on a new project that must demonstrate a
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significant impact across the City Region, and should be led by one Member Authority. Four expressions of interest were submitted in May, including two that the Council supported as a potential beneficiary. These were River Clyde flood measures and the development of small-scale new commercial and industrial premises across the Region. The decision on the successful bid(s) will require input from both Scottish and the new UK Government. In the meantime a working group has been set up by the City Region Programme Management Office to develop the proposal on commercial and industrial premises. 4.8 A commercial approach to Electric Vehicle Charging Infrastructure (EVCI) has been agreed by all City Region Member Authorities and the intention is to seek an external partner to deliver the required infrastructure. This was agreed at IRED Committee in May 2024. The funding application for this year has been agreed by all parties and submitted to Transport Scotland. Exploratory works associated with the EVCI project are currently ongoing. Based upon the current estimate, it is projected that an agreement with a Charge Point Operator would commence in May/June 2025. In the interim the Glasgow Ciity Region collaboration intend to use EV Infrastructure Fund to meet the costs of consultancy support. 4.9 A senior officers’ working group for Clyde Metro has been established for Glasgow City Region Member Authorities and the Council is represented on that group. Early engagement has been undertaken with each local authority to review the case for investment for Clyde Metro. A Case for Change and an Initial Option Development programme is underway to develop a vision, the objectives, and network options. 4.10 The Clyde Bridge is nearing completion, and Renfrewshire Council has been in touch to discuss joint publicity. 4.11 The next Cabinet meeting is on 8 August, and a verbal update from Cabinet can be given at Council. 5 People Implications 5.1 There are a number of senior officers involved in the Glasgow City Region wider programme as identified at City Region Update paper at Council on 26 August 2021. 6. Financial Implications 6.1 Spend this financial year to date on the Exxon project is £1,460,824 Overall spend is £ 8,240,350. 7. Risk Analysis 7.1 There are a number of project risks associated with the development at the Exxon project site and these are contained within the project risk register and updated by the Project Board on a regular basis. The Project Board is made up of senior officers from all key services.
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8. Equalities Impact Assessment 8.1 Previously completed. 9. Consultation 9.1 Consultation with all key stakeholders is progressing as we continue to work as part of the Glasgow City Region. 10 Strategic Assessment 10.1 At its meeting on 26 October 2022, the Council agreed that one of its main strategic priorities for the Strategic Plan 2022 - 2027 is ‘A Strong local economy and improved employment opportunities’ 10.2 The proposals within this report are specifically designed to deliver on this priority. Alan Douglas Chief Officer: Regulation and Regeneration Date: 13 March 2024 Person to Contact: Gillian McNamara gillian.mcnamara@west-dunbarton.gov.uk Appendix: None Background Papers: UK Shared Prosperity Fund Report to Housing and Communities Committee 22 August 2022 Glasgow City Region City Deal- Council 13 August 2014. “City Deal Initiative” Clyde Valley Investment Fund- Council 30 April 2014 (Memorandum of Understanding). Clyde Valley Community Planning Partnership – City Deal Initiative – Council 28 August 2013. Wards Affected: All