Democracy Spraffa

Appendix 1 Feedback from the UK Government on Connected Argyll and Bute BID

Argyll and Bute Council · 10 August 2023
Back to Policy and Resources Committee — 10 August 2023 and its agenda

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APPENDIX 1 – FEEDBACK FROM THE UK GOVERNMENT ON CONNECTED
ARGYLL AND BUTE BID 
LUF20203 - Connected Argyll and Bute  
Argyll And Bute│Scotland │Transport   
Bid Summary:  
Focusing on a net zero approach to regeneration this bid proposed 2 projects: 
1. Islay/Jura Whisky Islands transform 2 key roads (A846 and B8016); new active
travel route; additional marshalling capacity for LGVs; low emission replacement
ferry with increased capacity; and port infrastructure upgrades.   
2. North Lorn Economic Growth Zone  trunk road junction works; new service area
development road; new commercial area development platform. Oban airport -
creation of a new Advanced Aviation Mobility Hub; extend existing helipad; install
LED on runway; anti-glare solar panels and new Green Hanger; and introduce
green hydrogen fuel to Oban through provision of storage tanks; hydrogen
dispensers; and hydrogen bus purchases. 
Headline:  
This bid provided a strong Strategic Fit element but more details and evidence was
required in the Economic Case and Deliverability section to make this a stronger bid.  
Assessment Overview   
  
Strategic Fit: 
The council provided a detailed bid that clearly set out the local challenges and how
the LUF grant would be used to overcome them, and identifying how a thriving
whisky industry has the potential to transform the region but is being impeded by the
existing transport networks. Similarly, the bid set out how new housing, enterprise
and R&D zones on the mainland will only flourish if the proper infrastructure is in
place to support them. However, the bid lacked evidence of the demand for an
improved active travel route on Islay.    
The council highlighted that concerns were raised during the consultation that the
region's weather might make greater UAV use unlikely. 
The bid included plans to establish a market for hydrogen fuel that were interesting
and innovative, and seemed well-thought through.  
 
Economic Case:  
This section will outline the economic dimension feedback, whilst we have tried to
make this as accessible as possible it is also important that it stays specific and
technical to allow it to be insightful and actionable. It is therefore recommended that
you should share this feedback with whoever authored the economic dimension if
anything is not clear. If this is not possible DfT can provide a high level non-technical

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summary on request. The feedback is framed as areas to improve and will not touch
on the areas your economic dimension excelled at. The bid would have been
improved by: 
- Providing details of the problem with the current transport network, supported by
evidence such as traffic flows, journey times or evidence of congestion on key
routes.  Traffic data should demonstrate that it is representative of current
conditions and that it has been collected by methods which are aligned with
Transport Analysis Guidance (TAG). 
- Providing details on what the elements of the scheme consist of, such as the
active travel measures 
- Providing evidence on how the transport measures will address existing and
future transport related issues, for example in terms of the impact on travel times
and accidents.  The future travel demand should be forecast using an appropriate
methodology that aligns with TAG.   
- Undertaking an economic appraisal of the highway schemes that is in line with
TAG, for example the impact on journey times and accidents. 
- Undertaking an economic appraisal of the active mode schemes, for example
using active mode appraisal toolkit (AMAT).   
- Presenting a spend profile across the full construction period for capital
expenditure.  This should include an appropriate level of inflation for each year
that costs are incurred and be discounted to the PVC base year. 
- Applying optimism bias at a level that aligns with TAG.    
Deliverability: 
There were significant gaps in the deliverability section of the bid that needed to be
evidence to strength the bid. The budget provided was high-level and required
refinement and more evidence needed to be provided on securing the match
funding. More evidence was also needed as to demonstrate that the Islay
Community Access Group had the skills and experience to deliver the capital
expenditure over a three year period. 
The procurement approach evidenced by the applicant was too general and a more
specific strategy for the bid with a detailed project delivery plan would have
strengthened it. 
While the bidder evidenced a track record of delivering projects of this type and
scale, there was no delivery plan included with the bid and details on this and the
background, roles and responsibilities of the project team were expected. 
The monitoring and evaluation (M&E) element of the bid could be improved by
providing details metrics for data collection (for example how will a reduction in
congestion or carbon be measured?).

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Providing details on how the data to be collected will be used to monitor the impact
of the scheme and whether it will be measured against baseline conditions or a
counterfactual scenario would also have improved the M&E, as would providing
timescales for data collection that are sufficient to capture the full impact of the
anticipated outcomes.