231120~2
North Ayrshire Council · 20 November 2023
Back to Ayrshire Economic Joint Committee — 20 November 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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AYRSHIRE ECONOMIC JOINT COMMITTEE – 20 NOVEMBER 2023 REPORT BY HEAD OF ECONOMIC GROWTH EAST AYRSHIRE COUNCIL SUBJECT: AYRSHIRE GROWTH DEAL - PROGRAMME UPDATE PURPOSE OF REPORT 1. To advise the Economic Joint Committee members of the progress of the Ayrshire Growth Deal (AGD) and the development of its component projects as at 31 October 2023 (Appendix 1). Please note this report provides a further update on the AGD Programme and projects as reported to the 7 September 2023 Partnership Board. RECOMMENDATIONS 2. It is recommended that Members agree: (i) The updates provided in the attached report (as of 31 October 2023); (ii) The progress across the Ayrshire Growth Deal Programme; and (iii) Remit officers to liaise with both Governments to progress the projects having regard to the updated position in line with the formal change requirements contained within the Deal protocols; (iv) Note the proposal for realignment of the reporting requirements, principally the undertaking of the Annual Performance Report, Financial Plan, Implementation Plan and Benefit Realisation Plan at the end of March 24, and onwards at the same time ever year. All subject to agreement from the Government. BACKGROUND 3. This report is an update on the progress made on the Ayrshire Growth Deal (AGD). It has been prepared in line with the agreed governance structure and its commitment to monitoring and reporting progress across all parts of the Deal’s programme on regular basis. 4. A summary of the current status of the programme priorities and the development work associated with individual projects is contained within the progress report attached to this covering report. The report covers progress up to 31 October 2023 Please see Appendix 1). The previous update was reported to the Ayrshire Economic Partnership Board (AEPB), on 7 September 2023, and included progress up to the 25 August 2023. This report and attachments includes further updates. 5. Please note that the reporting period has sought to align as much as possible with the with the financial year’s quarters. However this report includes progress made in Q2
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and the start of Q3. Discussions are still underway with the secretariat for the AEPB and Ayrshire Economic Joint Committee (AEJC) in order to improve alignment of the quarters with the AGD programme reporting to members. 6. The report considers the progress made on the Deal at both a programme and project level. This includes an update on the Red/Amber/Green (RAG) status in regards to meeting milestone timelines, scope, budget and overall progress. Supporting narrative is provided where necessary. (Please see Programme and Project Introductions – Appendix 1). MAIN REPORT 7. The overall status for the programme is still remains as ‘red’. This reflects the continued challenges project leads are meeting in addressing cost pressures within a fixed budgets. 8. In early October senior management from the three Ayrshire Councils held discussions with the Government in order to consider the challenges the programme and key projects were and continuing to face. In particular the deliverability of key capital projects and exploring ways to mitigate the risks and blockages to delivery. Initial suggestions indicate changes for the programme and key projects. KEY POINTS Programme level 9. At the programme level the initial outcomes from the October discussions have identified the potential for the Programme to undergo a Review with a focus upon the key capital projects which are likely to experience significant change. The AGD Governance makes reference to the opportunity of undertaking a Checkpoint Review at any key decision point in the lifecycle of the programme (para 3.5 Governance Document v15 December 22). To confirm the extract from the Governance states the following: A Checkpoint Review process will be developed and agreed with partners and governments to examine both the Growth Deal programme and component projects at key decision points in their lifecycle. It will look ahead to provide assurance that projects can progress successfully to their next stage. 10. The Government has advised that the review should entitled as a Programme Review 23/24 which will inform the financial year 24/25. The Review is expected to be programme wide, with a likely focus on capital projects which are facing substantial challenges and are estimated to undertake significant change. This means projects which are currently in delivery, including those with a phased approach, are unlikely to be affected by the review. For example all revenue projects are now being delivered, whilst the i3 capital projects are in phased delivery. However where there is a proposal for a reallocation of funds then a wider range or all projects may be affected. 11. The approach and timing of the Programme Review is yet to be finalised. Early advice
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from the Government has expressed the need for a formal Letter of Intent to be prepared by the Partnership seeking the Governments support in undertaking the review. It is envisaged support from the Government will be subject to gaining partnership agreement on the way forward for the Deal; continuous dialogue on any changes proposed; and compliance with AGD Governance. 12. The PMO will coordinate the Programme Review in consultation with Partners, in line with the timetable below: Undertake Review of the Programme and Capital Projects Nov-Dec 23 Share direction of travel and provisional proposal with the Government as part of a series of ‘conversations’ Jan 24 Prepare change management papers with a Programme overview supported by summary of project review papers Feb 24 Present papers to the Partnership Board and Joint Committee Early 2024 (ready for the new FY 24/25) Reporting Implications 13. The proposal to undertake a Programme Review will have implications for the activities captured in the Programme dashboard (Appendix 1 – page 3). In consultation with the Government it is proposed to delay the preparation of the next Annual Performance Report. Originally the reporting period was Oct to Sept each year and recently amended to Oct 22 to Dec 23. This did not align with other key reporting requirements, so the PMO are in discussions with the Governments to amend further the reporting cycle so that it aligns with the financial year. This means the next Annual Performance Report is expected to cover October 2022 – March 2024 (18 months). This change would potentially allow the outcome of the Programme Review to be reflected in the Annual Performance Report, updated Financial Plan 24/25 and updated Implementation Plan 24/25. In addition we have been advised by Government that the Benefit Realisation Plan can be reviewed once a year not twice as currently done. So it is proposed that the BRP is updated at the end of March 24, so aligned with the above mentioned reporting requirements. We are awaiting Government feedback on the proposal to change the reporting cycle for the Annual Performance Report. Programme Financial Update 14. The latest financial update (October 2023) included in the monthly report provides a spend projection for the programme and individual projects. 15. In comparing the now protected spend and drawdown from the grant allocation for this financial year (2023/24) against the Grant Offer Letter 2023/24, it is noted that there will be a significant shortfall in the drawdown of funds allocated for this financial year. This is principally around capital projects such as Spaceport, Commercial Space and i3 Flexi Space. Indications are that the approval of FBCs for the Spaceport project is unlikely to be reached by the end of the financial year (Mar 24). An update on this
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project is provided elsewhere on the agenda. Commercial Space is unlikely to drawn down on its allocation due to delays in raising further private section funding. Finally progress on developing i3 Flexi Space is expected to slower than originally planned, hence an expected reduction in drawdown. 16. A shortfall in spend and drawdown is likely for the Community Wealth Building which reflects the delay in the project being delivered fully across all three Ayrshire Councils. A further shortfall is expected for the Ayrshire Skills Investment Fund projects due to the recent approval of its FBC. The scale of the shortfall however are expected to be minor when compared to the capital projects mentioned. Please see details below: Capital Projects Grant Offer Letter 23/24 (£m) As at P6 return (Sep 24) (£m) Differences (£m) Spaceport 2.855 3.355 +501 Commercial Space 17.689 1.023 -16.666 I3 Flexi Space 2.339 0.951 -1.389 CoRE 0.300 0.300 0 TOTAL 23.184 5.629 -17.555 Revenue Projects Grant Offer Letter 23/24 As at P6 return (Sep 24) (£m) Differences Working for Healthy Economy 0.703 0.703 0 Ayrshire Skills Investment Fund 0.850 0.850 0 Community Wealth Building 1.073 1.041 -32 TOTAL 2.626 2.594 -32 17. As a total the Programme is expected to drawdown £8.223m as opposed to £25.810m, a potential drop of £17.587m. Further details of the current financial position is set out in paragraphs 32-35. 18. The PMO continues to work with the SRO’s and project leads in addressing the changes in expected spend profile and to ensure future projections are accurate. This is reflected, as already raised, in the proposal to undertake a programme wide Checkpoint Review in consultation with the Government and in line with the AGD Governance. Further details on key projects including those under review are detailed in paragraphs 20-26. 19. In addition the PMO are continuing to explore ways to enhance the effective management of projects within the context of the AGD governance. This includes
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drafting of a series of Supplementary Advice Notes in relation to the change management process; development and management of Full Business Cases; and the interpretation of the new Subsidy Control requirements. Delays in preparing these Notes are due to staff shortages in the PMO (hence RAG status marked Red). Once drafted the Notes will be shared with the SROs and project leads and in turn be presented to the AEPB and AEJC. Project level 20. Project leads continue to meeting the challenges of developing and delivering projects. This is partly reflected in the changes in the spend projections for this financial year and the meeting of milestones included in the attached summary sheets (e.g. business case approvals). Below is a summary of the projects that are now ‘red’ in status from the perspective of budget, scope and overall position. Budgetary Issues - ‘Red’ status Scope Issues - ‘Red’ status Overall - ‘Red’ Status Spaceport Digital Spaceport Commercial Space Digital Digital 21. Compared to the previous AGD Programme Report to the Board on 7 September 23, there has been a reduction in the number of projects now rated with a Red RAG status. Key changes relate to: Roads – good progress is being made between SAC/ARA and Transport Scotland regarding the undertaking of a STAGs report. Marine Tourism - further review of the budgetary issues around the project have been undertaken with clarity provided on the deliverability of the Cumbrae, Arran and Ardrossan phases. ASTAC – progress being made on the development of a partnership approach with organisations such as Scottish Enterprise (SE) and Ayrshire College for this project. A further meeting is scheduled with Glasgow Prestwick Airport in order to confirm siting of the ASTAC proposition. 22. Project that still retain an Overall ‘red’ status as follows: 23. Spaceport – extensive discussions between SAC, SG and UKG are ongoing in order to overcome the complex challenges facing the project. A funding gap still exists and recent discussions from the Government have highlighted further development of the business case. An update is provided elsewhere on the agenda. 24. Digital Programme – At the last Board meeting on 7 September 23 an update was provided on the Digital project and the consideration of options for the future of the digital programme. The Board supported Option 5b ‘Building Digital Capital’ which sought the de-scoping of the project and potential reallocation of funds across the Deal.
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The outcome of this meeting is being considered elsewhere on the agenda. 25. Other highlights include: Commercial Space – Delays on the ground works for the Mangata (Opportunity A) project is still expected. This is due to the need to complete the Mangata’s series B funding round which is now expected to be by mid- December 23. Due diligence is continuing to be followed by SE. On site works is now expected to start in March 2024. Community Wealth Building – The findings of the midterm review of the project have been completed with a recommendation of extending the project for another year. Details of this proposal will be shared with the Government and then presented to the Board and Joint Committee as part of change management. AEP & AMIC – Change management papers are being prepared in line with discussions undertaken with the Government. Once received they will be presented to the Board and Joint Committee as part of the change management process. Ayrshire Skills Investment Fund – Following the approval of the FBC in August 23, a Delivery Model has been agreed with tenders now out for potential operators to deliver the fund. 26. Projects in delivery are; Community Wealth Building, Working for Healthy Economy, Commercial Space, i3 Flexi Space (Phase 1) and i3 DPMC (Phase 1), with Ayrshire Skills Investment Fund to be in delivery in the coming weeks. COMMUNICATION UPDATE 27. In line with the AGD Communication Action Plan please find attached (in Appendix 2) a copy of communication and engagement activity for all projects in the programme. This includes Q2 Review of past activities and Q3 planned activities. IMPLICATIONS 28. Eight implications have been considered in the preparation of this report. Implications Yes No Paragraph number in report 1. Policy/Strategic Planning No 2.Governance/Legal Yes Para 22 3. Human Resources No 4. Equality and Fairer Scotland Duty Yes Para 23 5. Financial Yes Para 24-27 6. Risk Yes Para 28-29 7. Community Wealth Building No 8. Net Zero No
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LEGAL IMPLICAITONS 29. The legal implications arising from this report are covered through the Agreement between Ayrshire’s councils and the Governance Document which was revised and approved at the Joint Committee meeting on 8 December 2022. EQUALITY IMPACT ASSESSMENT 30. There is no equalities impact relating to this report. Inclusion is a key driver for the AGD. Project Leads will be required to complete an Equality Impact Assessment for their project and append to the associated business case. Project Leads have received Equality Impact Assessment training organised by the Scottish Government. Project Leads are being encouraged by the PMO to link up as soon as possible with their Equalities Officer within their authority who will be able to assist with this matter. FINANCIAL IMPLICATIONS 31. The financial implications arising from this report are covered through the Financial Plan approved at the Joint Committee meeting on 26 June 2023. The overall cumulative total of Grant claimed for the Deal to date is £12.025m. 32. The ninth claim since Deal signing (in the financial year 23/24 Qtr2) has been made to the Scottish Government for c.£1.145m which is made up of expenditure associated with the Community Wealth Building, Working for a Healthy Economy, Commercial Space and i3 flexible Space. All claims made to date have been processed by Government and payment received. The financial position statement for September 2023 within the progress report does not include the Q2 claim due to date report was ran. (Appendix 1). 33. At the time of preparing this paper the forecast drawdown reported to Scottish Government for P7 2023/24 amounts to £8.223m, an anticipated decrease of £17.587m for the year compared to a budget of £25.810 million. Projects are, however, demonstrating commitment and incurring costs developing projects, with evidence of £10.967m having been spent by councils to date ahead of project business cases being approved. Once approval of the relevant business cases has been received from government and the Joint Committee, the relevant costs will be claimed back from government. 34. Please note all capital and revenue project costs are being monitored and discussed with regional partners, UK and Scottish governments. RISK IMPLICATIONS 35. Strategic and operational risk registers continue to be developed, reviewed and updated for the AGD Programme. This is being undertaken by the PMO with the support of EAC audit. The Programme Risk Register has been updated in accordance with the commitment to be reviewed every quarter as approved by the AEJC on 26
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June 2023. Details of the latest update is considered elsewhere on the agenda. 36. In addition the risk registers for each project which are updated on a monthly basis and reflected in the attached summary update (Please see Appendix 1). APPENDICES Appendix 1: Ayrshire Growth Deal Update of Programme and Projects Appendix 2: Quarterly Communications Report as October 2023 Background Papers: Heads of Terms, signed by both the UK and Scottish Governments and Ayrshire’s Councils on 8 March 2019 Deal Document, signed by both the UK and Scottish Governments and Ayrshire’s Councils on 19 November 2020 Members requiring further information should contact: Graham Saunders, Ayrshire Growth Deal –Strategic Manager graham.saunders@east-ayrshire.gov.uk Implementation Officer: Graham Saunders, Ayrshire Growth Deal – Strategic Manager graham.saunders@east-ayrshire.gov.uk
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Appendix 1 Ayrshire Growth Deal Update of Programme and Projects
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AYRSHIRE GROWTH DEAL Monthly Report - 30 October 2023
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Programme Updates - Guidance (Milestones) RAG Status Programme Milestone Timeline Status Overall Action Required Red Delay to delivery timeline of key milestone having a negative impact on programme One or more milestones are RED Immediate action required by senior management and relevant Boards as appropriate to address issues Amber Milestone slipping against planned date but not expected to impact delivery of the programme No milestones are highlighted RED but at least one is AMBER Management action is in place by PMO and/or senior management to address issues Green On track to deliver milestone on time or early All milestones are GREEN No management action required Complete Milestone delivered n /a No management action required Status against milestone timeline set out in Implementation Plan Milestones – current financial year and next financial year Programme Updates - Guidance (Risks) This table illustrates the conversion of AGD RAG Status to Scottish Government RAG Status Source GREEN AMBER RED N/A Ayrshire Growth Deal RAG Guidance Note with an AGD risk register score of between 0-3 with an AGD risk register score of between 4-9 with an AGD risk register score of between 10- 14 with an AGD risk register score of between 15-25 N/A Source GREEN AMBER/GREEN AMBER/RED RED N/A Scottish Government Guidance Successful delivery appears highly likely with regard to time, cost and quality and there are no major outstanding issues that at this stage appear to significantly threaten progress Successful delivery appears probable however attention will be needed in certain areas to ensure risks do not develop into major issues that will threaten delivery Successful delivery appears possible, but issues already exist that require serious attention. These appear resolvable at this stage, but further action is required Successful delivery is in serious doubt with major risks or issues apparent in a number of key areas. Urgent action is needed to ensure these are addressed Not listed on previous Quarter
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Programme Dashboard – 30 October 2023 Financial Summary Programme Milestones Programme Top Risks Overall Status Last Period Overall Status This Period Total AGD Grant £'000 AGD Grant Drawdown to Date £'000 %age of total AGD Grant 2023/24 AGD Grant Allocation £'000 2023/24 Grant Drawdown £'000 251,500 10,880 4.33% 25,810 295 Risk Likelihod Impact AGD Status SG Status Mitigating Action - UPDATE TO ALIGN WITH IMPLEMENTATION PLAN Failure to achieve AGD programme objectives within agreed budget 4 4 16 16 The Regional Economic Joint Committee, Regional Economic Partnership, AGD Steering Group in place to monitor progress and to address any weaknesses or issues that could impact on overall delivery. PMO developing monitoring and evaluation processes to ensure overall objectives are captured and any project failing to achieve and contribute to these is flagged and issues addressed as quickly as possible. This includes responding to increasing costs of general capital works within the context of the original funding made available by the Government in 2019. Leading to potential to review risks where evidence suggests insufficient funding to undertake and complete projects in line with expected outcomes. PMO are working with Partners in undertaking a Programme Review in line with the AGD Governance. PMO undertake ongoing environmental analysis to ensure programme objectives are relevant/valid as well as maximised where relevant and new benefits identified when materialising. Internal governance include regular reviews undertaken by PMO with input from SROs, Project Leads and Chief Executives to ensure AGD programme objective are met. Failure to provide accurate projections for programme spend 4 4 16 16 Issues will be escalated to CEOs, Regional Economic Partnership and Regional Economic Joint Committee as appropriate. PMO working with Partners in undertaking a Programme Review in order to clarify accurate projections for project and programme spend and delivery. The Implementation Plan and Financial Plan have been updated to take account of the compressed funding. Project Leads have sought to address delays in gaining approved FBCs, by undertaking reviews of projects to fit existing budgets, which are shared with Finance Directors, the government and wider partners. Revised project mitigation measures seek to demonstrate how inflationary pressures will be managed. Business Case process monitored to ensure streamlined pathway to approval enabling projects to achieve FBC as quickly as possible to reach project delivery and clarity on expected spend. PMO will regularly review, challenge and agree financial profiling/phasing with Project Leads, SROs and Finance Directors and ensure drawdown projections align with delivery timescales. OBCs/FBCs include an optimism bias factor as per Treasury Green Book and AGD Governance document. Inflationary factor addressed through project reviews e.g. re-scoping, phasing and reviewing benefits Failure to drawdown full AGD funding 4 4 16 16 PMO will regularly review, challenge and agree financial profiling/phasing with Project Leads, SROs and Finance Directors and ensure drawdown projections align with delivery timescales. This includes PMO working with Project Leads, SRO’s and S95’s to ensure projects can be realised and help with change processes where necessary; and undertaking effective communication with Governments to ensure projects can be realised. PMO working with Partners in undertaking a Programme Review in order to clarify accurate projections for project and programme drawdown on AGD funding. Achieve business case approval in line with latest Deal Implementation Plan, and AGD Governance document and, Finance guidance. Annual review of Financial Plan and Implementation Plan. The Scottish Government’s financial reporting requirements will be implemented. Pivot projects proactively where possible in line with need and opportunity. Internal procedures, financial controls and processes in place to mitigate this risk Delays in development and approval of business cases 4 4 Undertake focused engagement with SG and UKG in order to help ensure SBC, OBC and/or FBC comply with the Treasury Green Book and gain approval pin line with AGD governance. PMO working closely with Project Leads and Policy Leads within UK and Scottish Governments to support business case development and approval to an agreed timeline. This includes exploring a streamlined change process (pre-FBC) particularly where budget constraints are sole driver of change. In addition as part of a Programme Review, reschedule business case timescale for development and delivery. Project Leads have received Green Book business case training. Project Leads’ toolkit in place. Other partners assisting in developing business cases where capacity is low Lack of resources in PMO 4 4 A permanent PMO structure is in place but not all posts are currently filled, with recruitment now underway to start completing the team. The PMO is being supported by colleagues in each of the Councils in a number of work streams. PMO undertaking a review of capacity and skill sets in response to the changing requirements of the Office Potential impact of international events upon cost of living crisis and economic prosperity of Ayrshire 4 4 Regular engagement with Project Leads to highlight any risks well in advance, so that the PMO can raise with government, Regional Economic Partnership and Regional Economic Joint Committee as appropriate. PMO working with Partners in undertaking a programme midterm Checkpoint Review in response to the impact of costs pressures upon the delivery of the Programme. Regular review via monthly reports of outputs and timelines for business cases at every stage of development in the light of external events. Continued monitoring of external environment and government relations. Regional Economic Strategy approved in early 2023 and be supported by an emerging action plan. Regional Economic Partnership will provide voice for Ayrshire to press the case for government intervention investment. Incentives and other forms of assistance to complement the AGD and stimulate greater economic activity. Current change management process to be reviewed with both governments and partners. Regional Skills Investment Plan developed, with a focus on its implementation via Ayrshire Skills Group. Robust data analysis shared amongst key partners and stakeholders to reach common understanding of local economic conditions, leading to early identification of real threats and opportunities - achieving consensus with partners and stakeholders on strategic objectives for inclusive and sustainable economic growth, with effective action planning and monitoring. PMO co-ordinated evidence across Deals and submitted collective case via the Implementation Plan update to both governments setting out impact of increased costs or reduced the scope/outputs and time delivery if costs not met. PMO developing a baseline approach to FBC which will be shared with both governments and partners. Programme & Upcoming Programme Milestones Target Date RAG Grant Offer Letter for 2023/24 received and agreed 30-Jun-23 Complete 2023 Annual Review of Deal documentation approved (Implementation Plan, Financial Plan, Governance Document, Communications Protocol) 30-Jun-23 Complete Review overarching Monitoring & Evaluation Framework 30-Jul-23 Red Update Benefits Realisation Plan and progress on performance (every March) 31-Mar-24 Green Review and update Change Management Process - draft and approve Supplementary Advice Note 1 30-Jul-23 red Review and update Business Case process with a focus on Full business Case requirements - draft and approve Supplementary Advice Note 2 31-Aug-23 red Review and update Subsidy Control requirements for the AGD - draft and approve Supplementary Advice Note 3 31-Aug-23 red Review and update AGD web site programme and project details 30-Sep-23 Amber Key project interdependencies articulated 31-Mar-24 Green Annual Conversation (2022/23) 31-Jan-24 Green Annual Performance Report approved and published (2022/23) 28-Feb-24 Green Submission of statement of compliance with conditions of grant (2023/24) 30-Apr-24 Green Submission of statement of compliance with conditions of grant (2023/24) 30-Apr-24 Green
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AGD PROJECTS - COMPLETE Total Project Budget £'000 Government Grant Funding £'000 Government Grant Claimed to date £'000 Total Expenditure 17/18 to 20/21 £'000 FINANCIAL POSITION STATEMENT FINANCE YEAR 2023/24 QUARTER 2 HALO 9,000 7,000 7,000 10,524 MONTH Sep-23 9,000 7,000 7,000 10,524 Government Grant 2023/24 £'000 AGD PROJECTS - EXPECTED FBC/APPROVED FBC IN 2023/24 ~ GRANT OFFER LETTER Total Project Budget £'000 Government Grant Funding £'000 Government Grant Claimed to date £'000 Total Expenditure 17/18 to 22/23 £'000 Total Expenditure 23/24 YTD £'000 Grant Allocation TBC Grant Claimed Q1 Grant Claimed Q2 Grant Claimed Q3 Grant Claimed Q4 Total Grant Claimed YTD Remainig Grant Available to Claim in year Spaceport Infrastructure 23,000 23,000 0 2,856 329 2,855 0 0 0 0 0 2,855 Commercial Space - Prestwick - Industrial & Hangar 29,000 22,000 825 1,160 730 17,690 0 0 0 0 0 17,690 i3 Flexible Business Space 15,000 11,000 307 545 0 2,339 65 0 0 0 65 2,274 Community Renewable Energy Project (CoRE) 24,500 17,000 0 976 74 300 0 0 0 0 0 300 Working for a Healthy Economy 5,000 5,000 1,118 1,118 293 703 117 0 0 0 117 586 Ayrshire Skills Investment Fund 3,500 3,500 0 0 0 850 0 0 0 0 0 850 Community Wealth Building Fund 3,000 3,000 1,335 1,335 343 1,073 113 0 0 0 113 960 103,000 84,500 3,584 7,989 1,769 25,810 295 0 0 0 295 25,515 AGD PROJECTS - FUTURE Total Project Budget £'000 Government Grant Funding £'000 Government Grant Claimed to date £'000 Total Expenditure 17/18 to 22/23 £'000 Total Expenditure 23/24 YTD £'000 Aerospace & Space Technology Application Centre (ASTAC) 11,000 5,000 0 728 0 Prestwick Infrastructure - Roads 17,000 12,000 0 472 20 Ayrshire Engineering Park (Moorfield) 16,000 12,000 0 826 43 Ayrshire Manufacturing Investment Corridor (AMIC) 23,500 23,500 0 390 28 i3 Digital Processing Manufacturing Centre 6,000 5,000 0 245 19 Hunterston Strategic Development Area 18,000 18,000 0 192 6 International Marine Science & Environmental Centre (IMSE) 10,500 6,500 0 134 8 The Great Harbour, Irvine Harbourside & Ardeer 14,000 9,000 0 460 109 Marine Tourism 9,500 9,500 0 412 30 Digital Projects (name TBC) 14,000 14,000 0 76 0 139,500 114,500 0 3,934 263 AGD TOTAL 251,500 206,000 10,584 22,447 2,032
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Project Updates - Guidance Project Stages Stage Definition Project Stages Stage Definition Define - SBC Establishing the strategic context for the spending proposal Implement Business case has been approved by Joint Committee, and is being implemented Define - OBC Establishing the preferred option Deliver Project is in place and monitoring and evaluation is in framework to assess if it is achieving its objectives Define - FBC OBC approved by government, securing delivery plans and finalising detailed costing Legacy Project has resulted in mainstreaming or improvements to business as usual (impact) that is generated beyond the funded period RAG Status Programme Milestone Timeline Status Project Scope Status Project Budget Status Overall Action Required Red Delay to delivery timeline of key milestone having a negative impact on project completion date Significant change in scope expected, with no change request in process There are projected or actual adverse variances with recovery plan to be established One or more milestone, scope or budget indicators are RED Immediate action required by senior management and relevant Boards as appropriate to address issues Amber Key milestone missed or projected to miss against planned date but not expected to negatively impact the original project completion date Likely to be minor changes in scope within agreed business case OR scope is still developing OR significant change request not yet approved There are projected or actual adverse variances, however a recovery plan is in place No milestone, scope or budget indicators are RED but at least one is AMBER Management action is in place by PMO and/or senior management to address issues Green On track to deliver milestone on time or early Scope has been set and on plan with agreed business case AND/OR formal change request approved There are no actual or projected variances All milestone, scope and budget indicators are GREEN No management action required Complete Milestone delivered Project complete and all items in scope delivered Financial transactions relating to project have been settled If all the milestone, cost, scope and benefits realisation indicators are complete No management action required Future N/A N/A Business Case more than one year away from submission n /a No management action required Milestones – current financial year and next financial year PMO = Programme Management Office SBC = Strategic Business Case OBC = Outline Business Case FBC = Full Business Case Project Updates - Guidance (Risks) This table illustrates the conversion of AGD RAG Status to Scottish Government RAG Status Source GREEN AMBER RED N/A Ayrshire Growth Deal RAG Guidance Note with an AGD risk register score of between 0-3 with an AGD risk register score of between 4-9 with an AGD risk register score of between 10-14 with an AGD risk register score of between 15-25 N/A GREEN AMBER/GREEN AMBER/RED RED N/A Scottish Government Guidance Successful delivery appears highly likely with regard to time, cost and quality and there are no major outstanding issues that at this stage appear to significantly threaten progress Successful delivery appears probable however attention will be needed in certain areas to ensure risks do not develop into major issues that will threaten delivery Successful delivery appears possible, but issues already exist that require serious attention. These appear resolvable at this stage, but further action is required Successful delivery is in serious doubt with major risks or issues apparent in a number of key areas. Urgent action is needed to ensure these are addressed Not listed in previous Quarter
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Programme Summary – 30 October 2023 Project Name OBC Date OBC RAG FBC Date FBC RAG Project Scope Status Project Budget Status Project Overall Status Aerospace and Space Technology Application Centre 01/12/2023 Green 02/08/2024 Green Green Amber Amber Spaceport Infrastructure 30/10/2021 Complete 30/09/2023 Red Green Red Red Prestwick Commercial Space 30/08/2021 Complete 08/09/2022 Complete Green Red Amber Prestwick Infrastructure Roads 28/02/2024 Green 31/10/2024 Green Green Amber Amber Ayrshire Engineering Park (Moorfield) 30/09/2023 Amber 10/06/2024 Green Amber Amber Amber Ayrshire Manufacturing Investment Corridor 30/10/2023 Amber 10/06/2024 Green Green Amber Amber i3 Flexible Business Space 30/05/2021 Complete 30/09/2022 Complete Green Amber Amber i3 Digital Processing Manufacturing Centre 31/05/2022 Complete 30/06/2022 Complete Green Amber Amber HALO 31/05/2022 Complete 30/06/2022 Complete Complete Complete Complete Community Renewable Energy 31/05/2022 Complete 20/12/2023 Green Amber Amber Amber Hunterston 30/06/2024 Green 28/02/2026 Green Amber Green Amber International Marine Science & Environmental Centre 30/06/2024 Green 28/02/2026 Green Amber Amber Amber Marine Tourism 31/12/2023 Green 30/03/2026 Green Amber Amber Amber Great Harbour 25/06/2021 Complete 31/03/2024 Green Amber Amber Green Digital Infrastructure & Subsea Cable (TBC) tbc under rescope tbc under rescope red Red Red Ayrshire Skills Investment Fund 30/04/2023 Complete 30/06/2023 Complete Amber Green Amber Working for Healthy Economy 19/02/2021 Complete 22/02/2021 Complete Green Green Green Community Wealth Building 12/02/2021 Complete 22/02/2021 Complete Green Green Green
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Project Updates – Space and Aerospace Programme 30 October 2023 Project Name Project Lead Senior Responsible Officer Aerospace & Space Technology Application Centre George Hunter Louise Reid Spaceport Infrastructure Derek Yuille Commercial Space Derek Yuille Prestwick Infrastructure Roads (Phase 1) Kevin Braidwood
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Aerospace and Space Technology Application Centre Oct Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Amber Monthly update - provide narrative Project Lead: George Hunter Meeting with Scottish Enterprise head of place and team took place to agree/establish their wider role and responsibilities in supporting the project. Follow-up meeting took place with GPA to review the viable properties within the airport estate and establish the needs of SAC/Ayrshire college for the facility. SAC presented the case for the area surrounding hanger 457 and reasoning around this. Also discussed were possible alternative sites, each located in close proximity to the terminal building with easy road/rail access links. Next steps include a further meeting with GPA/AC/SAC with the aim of confirming site of ASTAC proposition and establish needs of all parties concerned regarding land/lease term/legals. Some milestones moved from green to amber. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 01/12/2023 Green AGD/O/1 - New Jobs Created (Direct and Indirect) tbc tbc FBC 02/08/2024 Green AGD/O/2 - Construction jobs created tbc tbc Phases Target date AGD/O/9 - Business Space Created tbc tbc Phases Target date AGD/O/13 - Visitors tbc tbc Phases Target date AGD/O/14 - SME's Supported tbc tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC Submitted to Government 01/12/2023 Amber Completion of Phase 2 30/10/2029 Amber Develop local partnership delivery model 01/12/2023 Green Final financial drawdown 31/03/2030 Amber Complete final project design and procurement documentation 02/08/2024 Amber FBC approved by Joint Committee 02/08/2024 Amber Hand-over (Phase 1) to operational organisation 23/10/2026 Amber Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action A Viable and Sustainable Operational Funding (OPEX) model not achieved 5 4 20 • Review existing models (UK- HIE/Perth College) • Consultation Scottish Funding Council on academic funding support (OPEX) • Consultation and developing model with Ayrshire College 20/12/2023 Site for the ASTAC Facility not secured within GPA Estate offering airside access/scale/offside access on acceptable terms 5 4 20 • Secure early dialogue with Glasgow Prestwick Airport. Sidentify ASTAC spatial needs. Review options. Develop a conceptual Plan for ASTAC campus 20/12/2023 ASTAC capital costs (CAPEX) exceed ASTAC approved budgets and other funding not available 4 4 16 • Complete early assessment of CAPEX costs and Prestwick build costs. Ensure adequate OB provision. Make allowances for fees/legals inflation 20/12/2023 Securing aggreements and approvals requires additional time and programme delayed 4 4 16 • Develop Programme with Steering Group. Align SAC and AC resources. Secure early SAC agreements and internal reporting 20/12/2023 Economic and social benefits and a positive BCR not delivered 4 3 12 12 • OBC to include full EIA to Green Book/PMO template. Develop the Monitoring and Evaluation Framework. • Complete in the OBC the Benefits Realisation Plan 20/12/2023
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Spaceport Infrastructure Oct Project Overall Status 2023 Red Project Update Project Scope Status Green Project Budget Status Red Monthly update - provide narrative Project Lead: Derek Yuille There is a significant funding gap and additional funds are required if the project is to proceed. Discussions are ongoing with SE/SG/UKG to identify where funding can be sourced to meet shortfall, including proposals for SE to acquire land and reapportioning of digital funds. Recent Government advice has required the approved OBC to be reviewed in light of the likely changes to the project, with a revised OBC and FBC being scheduled for Spring/Summer 2024. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/10/2021 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 10 tbc FBC 30/09/2023 Red AGD/O/2 - Construciton Jobs Created 135 tbc Phases Target date AGD/O/9 - Business Space Created 3200 sqm tbc Phases Target date Target tbc Phases Target date Target tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status RIBA Stage 3 30/04/2023 Red Airspace change agreed 31/03/2024 Red Heads of Terms agreed to purchase land 20/06/2023 Red LSO/LSP/Range Licence requirements for first launch 30/11/2024 Red FBC approved by Joint Committee 30/09/2023 Red Spaceport infrastructure complete 30/11/2024 Red Construction Start 01/11/2023 Red First Commercial Launch 31/01/2025 Red Safety Case 31/03/2024 Red Full project completed/final drawdown 31/03/2026 Red Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Failure to agree operating arrangement for Spaceport 5 5 25 Avison Young have proposed Spaceport leasing and operating proposals for SAC and the Spaceport Launch Service Operator Glasgow Prestwick Airport, however an agreement has yet to be reached that complies with AGD capital funding requirements, local authority operating legislation and that mitigates any financial and legal risks the Council may be exposed to where the Council has ongoing responsibility for the Spaceport asset. 31/12/2023 Failure to obtain FBC approval 5 5 25 A Full Business Case for the Spaceport requires the following to be in place: i) an agreement or Heads of Terms over the land with confirmed budget source; ii) a costed deliverable infrastructure scheme with budget in place and iii) an agreement or Heads of Terms on the operating arrangement for the asset between the proposed owner of the asset, and the Launch Service Operator (LSO) Glasgow Prestwick Operator 31/12/2023 The model SE use to acquire land for spaceport may require a lease arrangement with SAC. 5 5 25 The land acquisition/lease payments are not funded by AGD and the Council are not in a position to enter any borrowing arrangements to fund this 31/12/2023 Failure to agree ownership of the new Spaceport infrastructure (eg. LVIF, apron, access road, control point) 5 5 25 Professional advice being sought by SAC on the legilities of SAC having any ownership rights to the Spaceport. Advice previously confirmed operating arrangement scenarios. 31/10/2023 Project costs cannot be met by the existing AGD project budget 5 5 25 Digital re-scoping exercise and proposal that build shortfall is supported by digital funds. SE will acquire the land. 31/10/2023 Land owner may walk away due to lack of progress 4 5 20 SE to take forward discussions with landowner 04/01/2024 Risk the economic impact of the spaceport scores low given that the costs have significantly increased but the net jobs has not changed 4 5 20 SE to commission further work on EIA 04/01/2024 SE requiring SAC to enter into legally binding agreement that links delivery of a new access road from Sandyford Toll to SE’s purchase of the land 4 5 20 Road deliverability uncertain until STAG complete. 04/01/2024
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Prestwick Commercial Space Oct Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Red Monthly update - provide narrative Project Lead: Derek Yuille Site preparatory works/archaeology are now complete on Opp A (Mangata). Construction costs have not changed since last reported. The next significant milestone date is the completion of Mangata’s Series B funding round, where they are targeting c$100m investment. This had been expected to conclude in July, but the completion date has been pushed out and the anticipated completion date is now December. SE require security for the value of the cost overrun before entering the Main Delivery Agreement (construction contract), and plan to carry out updated due diligence prior to entering the Main Delivery Agreement. Therefore the delay to the funding and the design finalisations has a knock-on effect on entering the main build contract (expected Q4 23/24), and therefore the construction dates (Q1 24/25). Completion now Q2 2026. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/08/2021 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 570 tbc FBC 08/09/2022 Complete AGD/O/2 - Construciton Jobs Created 150 tbc AGD/O/9 - Business Space Created 13900 sqm tbc AGD/O/16 - Leverage (incl. LA, HE/FE, Private Sector and any other levereage) £55,000,000 tbc Target tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Planning permission 31/05/2023 Complete Handover 31/12/2025 Green Final financial drawdown 31/03/2030 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Failure of Mangata to resource additional funding 4 4 16 • Closing Series B continues to prove challenging for Mangata, with timing now forecast for early December (previously end September). However, Mangata have now signed a letter of intent with a lead investor. • Mangata are funding the business through Convertible Loan Notes until Series B close. This requires them to continue to raise cash as current funding forecast lasts until October and includes the R&D Grant payment. Mangata's forecasts show that they then anticipate some funding in October 2023, before conclusion of Series B, expected December. 30/11/2023 Delays in provision of utilities 2 2 4 4 • Site energy strategy to be put in place and early engagement in place across utilities companies 30/06/2024 Delays to design and build procurement processes • Challenges to the process • Availability of contractors 2 2 4 4 • External expert advisers have been procured to support the project team and will adhere to the procurement policies of South Ayrshire Council • Timescales have been set to ensure that there is a sufficient pool of suppliers to undertake the activities and are interested in providing a competitive tender 31/12/2023 Economic downturn 2 2 4 4 • Early engagement with market indicates that this investment is an important part of recovery and engagement with market will be maintained 31/12/2024
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Prestwick Infrastructure Roads Oct Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Amber Monthly update - provide narrative Project Lead: Kevin Braidwood Progress with the STAG is ongoing for the Ayrshire Growth Deal Roads Enabling project. Following approval to discard the history phased roads enabling projects a further report has been prepared and lodged for presentation to Cabinet detailing the work undertaken to date with the next steps required to minimise delay in the programme and maintain momentum on the project. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 28/02/2024 Green AGD/O/2 - Construction Jobs Created 40 tbc FBC 31/10/2024 Green AGD/O/7 - new roadway created 2 km tbc Phases Target date AGD/O/7 - roadway upgraded 1 km tbc Phases Target date AGD/O/7 - new roundabouts 1 tbc Phases Target date AGD/O/11 - upgraded roundabouts 3 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Roads Enabling STAG Appraisal - Release of funds from Transport Scotland 01/03/2024 Green Procurement of contractor and commencement of works – Monkton 01/08/2025 Green Planning and regulatory consent achieved – Spaceport (St Quivox) 30/09/2023 Red Completion of works – Spaceport (St Quivox) 31/12/2024 Red Land assembly, site preparation, contract documentation – Spaceport (St Quivox) 31/12/2023 Red Completion of works – Enabling transport works 01/03/2026 Green Planning and regulatory consent achieved – Monkton 31/12/2023 Red Planning and regulatory consent achieved - Gannet Link tbc Red Roads Enabling OBC - TS & Council Approval 01/08/2024 Green Land assembly, site preparation, contract documentation - Gannet Link tbc Red Land assembly, site preparation, contract documentation – Monkton 31/03/2024 Red Procurement of contractor and commencement of works – Gannet Link tbc Red Procurement of contractor and commencement of works – Spaceport (St Quivox) 30/04/2024 Red Completion of works - Gannet Link tbc Red Roads Enabling FBC - TS & Council Approval 01/03/2025 Green Final financial drawdown tbc Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Delays in release of enabling infrastructure funding from Scottish Government via Transport Scotland 4 4 16 Commissioning of Enabling Roads STAG and OBC • Effective scoping and ongoing liaison with Transport Scotland STAG Mar 2024 OBC Nov 2024 Additional risk that any spaceport access road, delivered outside the STAG process is not only not eligible for funding via the enabling infrastructure funds but also starilises available land for the Growth Deal if access cannot be gained due to the Spaceport project working in isolation 4 4 16 Continues liaison with Spaceport and requirement for this project to meet requirements of STAG process or withdraw from the AGD enabling works fund. Requirement added for Spaceport project to ensure ongoing access to the southern AGD lands for future development 30/09/2024 Cost overruns 4 2 8 8 Project delivery will be led by a qualified project manager following established process for road construction Costs will be monitored against progress and reported to the programme board Any additional costs will be absorbed where possible by project redesign and/or re- prioritisation 31/12/2027 Planning Approval - Dealys in planning due to capacity constraints, Objections to proposed route, Planning programme and interrelation between overall Spaceport development and enabling roads intrastructure 3 2 6 6 Programme recognised by Planning Department as a major project and given priority • Prestwick Campus Masterplan incorporated in development of LDP2 via main issues report and subsequent consultation with residents and other parties • On-going community consultation • Planning Strategy to be developed to ensure planning applications are interconnected 31/12/2024 Land assembly delays - Monkton & Spaceport 3 2 6 6 Early commencement of Land Owner negotiations 31/12/2024
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Project Updates – Economic Infrastructure Programme 30 September 23 Project Name Project Lead Senior Responsible Officer Ayrshire Engineering Park (Moorfield) Fiona Paterson David McDowall Ayrshire Manufacturing Investment Corridor (AMIC) Gillian Morton i3 Flexible Business Space Marnie Ritchie Neale McIlvanney i3 Digital Processing Manufacturing Centre (DPMC) Marnie Ritchie HALO Gary Deans David McDowall
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Ayrshire Engineering Park (Moorfield) Oct Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Amber Monthly update - provide narrative Project Lead: Fiona Paterson 1. Three public consultations for the Ayrshire Innovation Park pre planning application have now taken place. Feedback has been very positive in relation to both the Ayrshire Manufacturing Investment Corridor Project and the Ayrshire Engineering Park. Feedback from the public consultations held will be included in the next iteration of the OBC. 2. The project team are currently preparing change request documentation in line with discussions held with Government over the past few weeks. A revised target date for the OBC submission for AEP & AMI is under consideration and will be provided ASAP. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/09/2023 Amber AGD/O/1 - New Jobs Created (Direct and Indirect) 203 tbc FBC 10/06/2024 Green AGD/O/2 - Construciton Jobs Created 88 tbc Phases Target date AGD/O/9 - Business Space Created 7250 sqm tbc Phases Target date AGD/O/10 - Reduced vacant & derelict land 18.3 ha tbc Phases Target date AGD/OT/7 - Additional Investment (incl Foreign Direct Investment) tbc tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC Approved by Government 30/09/2023 Amber FBC approved by Joint Committee 10/06/2024 Green Tender for Building Services & Civil and Structural Engineers Services 02/05/2023 Green Commencement of infrastructure works 24/06/2024 Green Design period inl community consultation & Environmen Impact Analysis commences 10/07/2023 Green Construction of terraced units and 500sqm unit 21/04/2025 Green Planning permission secured 30/03/2024 Green Initial business premises operational 19/01/2026 Green FBC endorsed by Government 20/05/2024 Green First tenants move in 01/02/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Failure to Contribute to AGD programme objectives 3 3 9 9 • Project will be managed by EAC in line with PRINCE 2 principles – any issues will be monitored, and remedial action agreed to ensure delivery remains in line with the OBC projections. • AGD Steering Group and other governance arrangements are in place to monitor progress and to address any weaknesses or issues that could impact on overall delivery and project lead will be required to provide regular project updates 31/3/2027 Failure to provide accurate projections for project spend 3 3 9 9 • Ensure sufficient optimism bias built into costing of the project • Inflationary factor included in cost estimations • Project will be managed by project team in line with PRINCE 2 principles – any issues will be monitored, and remedial action agreed to ensure delivery remains in line with the BC projections • Issues to be escalated PMO in first instance to agree remedial actions as appropriate • Challenge panel led by PMO exists to review & scrutinise spend profiles 31/3/2027 Delays in approval of business case 3 3 9 9 • Project lead will work closely with PMO and policy leads within UKG and SG to support business case development and approval to an agreed timeline 30/12/2025 Failure to deliver community benefits from the project 3 2 6 6 • Procurement colleagues will support the tender process to ensure that community benefits are a key aspect of the ITT and are in line with agreed AGD procurement principles 31/03/2027 Negative Publicity 3 2 6 6 • A communications protocol has been agreed with both governments and will support shared communications designed to build stakeholder confidence • All project specific publicity will be dealt with in a coordinated fashion, sensitivity and empathy to business climates at the time of publications will be carefully monitored 31/3/2027
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Ayrshire Manufacturing Investment Corridor Oct Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Amber Monthly update - provide narrative Project Lead: Gillian Morton 1. Three public consultations for the Ayrshire Innovation Park pre planning application have now taken place. Feedback has been very positive in relation to both the Ayrshire Manufacturing Investment Corridor Project and the Ayrshire Engineering Park. Feedback from the public consultations held will be included in the next iteration of the OBC. 2. The project team are currently preparing change reuquests documentation in line with the discussions held with Governments over the past few weeks. A revised target date for OBC submission for AEP & AMIC is under consideration and will be provided ASAP. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/10/2023 Amber AGD/O/1 - New Jobs Created (Direct and Indirect) 189 tbc FBC 10/06/2024 Green AGD/O/2 - Construciton Jobs Created 130 tbc Phases Target date AGD/O/9 - Business Space Created 5814 sqm tbc Phases Target date tbc tbc Phases Target date tbc tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC Approved by Government 30/10/2023 Amber Phase 1 - works commence (Food & Drink Centre) 07/04/2025 Green Planning application secured 28/02/2024 Green Phase 2 - works commence (speculative units) 02/02/2026 Green FBC endorsed by Government 20/05/2024 Green Phase 1 - Initial premises operational 01/02/2026 Green FBC approved by Joint Committee 10/06/2024 Green Phase 2 - Initial premises operational 09/11/2026 Green Award & Commence Infrastructure - Procurement Contract 24/06/2024 Green First tenant secured 01/02/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impac t Likelihood Score AGD Status SG Status Mitigation Action Construction costs in particular costs of materials significantly increase 4 4 16 • The project team will work closely with colleagues in F+PM and the design consultants to develop a cost effective but efficient building design. An affordability cap has been set as part of the appointment of the design team to ensure we work within the parameters of the budget. 24/06/2024 Delay or failure delivering project due to concerns around transport implications 3 3 9 9 • Undertake all Transport Assessments and reports as required by LDP • Continue to liaise with Transport Scotland • Continue to progress all site options proposed in BC to ensure best site possible is chosen and the project can be delivered 30/05/2024 Delays in approval of business case 3 3 9 9 • Project lead will work closely with PMO and policy leads within UKG and SG to support business case development and approval to an agreed timeline 30/03/2025 Failure to Contribute to AGD programme objectives 3 3 9 9 • Project will be managed by EAC in line with PRINCE 2 principles – any issues will be monitored, and remedial action agreed to ensure delivery remains in line with the OBC projections. • AGD Steering Group and other governance arrangements are in place to monitor progress and to address any weaknesses or issues that could impact on overall delivery and project lead will be required to provide regular project updates 31/03/2027 Failure to provide accurate projections for project spend 3 3 9 9 • Ensure sufficient optimism bias built into costing of the project • Inflationary factor included in cost estimations • Project will be managed by project team in line with PRINCE 2 principles – any issues will be monitored, and remedial action agreed to ensure delivery remains in line with the BC projections • Issues to be escalated PMO in first instance to agree remedial actions as appropriate • Challenge panel led by PMO exists to review & scrutinise spend profiles 31/03/2027 Health Pandemic/UK threat to business activity 3 3 9 9 • AMIC building will be a strategic centre for businesses in times of crisis. The centre will provide support and direction for food and drinks businesses as well as providing additional manufacturing space to allow supply to meet demand especially within the Dairy Sector. 31/03/2027
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i3 Flexible Business Space Oct Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Amber Monthly update - provide narrative Project Lead: Marnie Ritchie Phase 1 - Contractor Muir Group now due to commence works on site on 30 October. Photo call to mark start of works will take place on 9 November. Contractor advising estimated completion date as 29 July 2024. Phase 2 & 3 - Developing specifications for Phase 2 with internal team of architects and surveyors. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/05/2021 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 133 tbc FBC 30/09/2022 Complete AGD/O/2 - Construction jobs created 83 tbc Phase 2 FBC 25/02/2025 Green AGD/O/9 - Business Space Created 6000 sqm tbc Phase 3 FBC 28/02/2027 Green AGD/O/10 - Reduced vacant and derelict land 20 ha tbc AGD/O/14 - Start-ups 5 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Construction/Project completed and Handover (RIBA Stage 5-6; Construction & Handover 31/10/2024 Green Completion of Phase 2 30/10/2029 Green Reporting; outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 31/10/2025 Green Final financial drawdown 31/03/2030 Green Phase 2 FBC approved by Joint Committee 25/02/2025 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 31/03/2025 Green Construction/Project completed and Handover (RIBA Stage 5-6; Construction & Handover tbc Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Cost overruns 4 5 20 • Develop and validate Project Brief and Specification • Benchmark costs • Ensure early infrastructure cost tested/ informed SI • Provide Green Book compliant optimism bias allowances • Provide for contingency • Undertake value engineering • Pursue additional funding sources Project delays and economic impact of Covid-19 and recovery 4 4 16 • Early analysis has identified that the need for this project is unlikely to be diminished and in fact may be even greater • Project team will continue to focus on economic analysis and the development of recovery plans will incorporate this as a key project for implementation as part of that wider plan • Work with contractors to devise solutions designed to minimise impact of social distancing – such as different work patterns Failure to deliver anticipated outputs and outcomes 3 5 15 • Ensure BC addresses sensitivity of outcomes • Clear Evaluation & Monitoring Framework Demand – no interest from occupiers 3 5 15 • Flexible design to maximise potential interest from occupiers • Marketing and promotion of floorspace • Continue to establish strategic relationship with national sector (including links with NMIS) Utilities cause delays e.g. surface water drainage connections, sub-station requirements. 3 4 12 12 • Utility companies to be approached and applications to be submitted at an early stage. Despite this mitigation, issues have arisen on utilities for Phase 1, hence change to status to reflect this. Contractor working with Scottish Water and current issue resolved. However changed to amber /red status for ongoing project and future phases.
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i3 Digital Processing Manufacturing Centre Oct Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Amber Monthly update - provide narrative Project Lead: Marnie Ritchie Phase 1 - University of Strathclyde are procuring the equipment, fit out, recruiting for resources and securing membership of companies which is taking longer than anticipated. Official launch planned for February 2024. Phase 2 - Centre: Analysis with partners to be completed on Phase 1 to provide scoping parameters for phase 2. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 31/05/2022 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 95 tbc FBC 30/06/2022 Complete AGD/O/2 - Construction Jobs Created 84 tbc Phase 2 OBC 31/12/2024 Green AGD/O/9 - Business Space Created 1749 sqm tbc Phase 2 FBC 31/12/2025 Green AGD/O/10 - Reduced vacant & derelict land 20 Ha tbc AGD/O/16 - Leverage: (incl. LA, HE/FE, Private Sector and any other leverage) £19,810,000 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Reporting; outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 31/07/2027 Green Reporting; outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 30/04/2028 Green OBC Phase 2 approved by Government 31/12/2024 Green FBC Phase 2 approved by Joint Committee 31/12/2025 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 31/01/2026 Green Construction/Project completed and Handover (RIBA Stage 5-6; Construction & Handover 31/07/2027 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Capital costs are in excess of the budget. 4 4 16 • Value engineering of works specifications • Proactive review of funding opportunities to make the shortfall Failure to deliver anticipated outputs and outcomes 4 3 12 12 • Ensure BC addresses sensitivity of outcomes • Clear Evaluation & Monitoring Framework • Phase 0 and Phase 1 will establish the concept, build operational capacity and industry interest. • Conditions of grant will include expected outputs to measure the project’s success. • Regular monitoring of centre’s performance through Supervisory Board Delays to procurement processes 3 4 12 12 • Seek early agreement on appropriate procurement routes • Include anticipated tender packages within the Council’s Procurement Wave Plan • Notify potential bidders of procurement opportunities at an early stage Ongoing Partnership commitment 4 3 12 12 • Memorandum of Understanding signed August 2021 • Collaboration Agreement signed March 2022 • Development and co-ordination of appropriate governance procedures • Commitment to lease for Phase 1 location Failure to deliver community benefits 4 3 12 12 • Incorporate appropriate community benefits into contract terms and resource appropriately.
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HALO June Project Overall Status 2023 Complete Project Update Project Scope Status Complete Project Budget Status Complete Monthly update - provide narrative Project Lead: Gary Deans Since last reporting HALO have continued to hold a variety of events and support a growing number of diverse business at its #RockMe trading floor. A key event was the successful Space and Trade Conference with speakers from Kate Rubins Astronaut NASA; / Jack Hillmeyer US Consul General; and Dr David Alexander OBE Rice Space Institute Houston. Topics included the role of young people, the realtionship between HALO and USA, and future thoughts in education. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 31/05/2022 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 232 182 FBC 30/06/2022 Complete AGD/O/2 - Construciton Jobs Created 256 265 Phases Target date AGD/O/3 - safeguarded jobs 300 375 Phases Target date AGD/O/15 - Private sector investment £15,199,000 tbc Phases Target date AGD/OT/7 - Public and private sector investment - Phase 2 £46,000,000 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Failure in financial management and reporting 2 2 4 4 • The Board of HALO Kilmarnock Ltd receives monthly reports on all financial aspects of the project and address any significant variances from the approved full business case Robust financial systems and controls are in place and the Board of HALO Kilmarnock Ltd retains oversight of these. Copy of monthly report forwarded to PMO for BRP purposes. Reputational 2 2 4 4 • Specialist advisers have been appointed to deal with media enquiries and to communicate on any issue which is deemed to potentially impact on the reputation of the project and the Board of HALO Kilmarnock Ltd
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Project Updates – Energy, Circular Economy & Environment Programme 30 September 2023 Project Name Project Lead Senior Responsible Officer Community Renewable Energy (CoRE) Diarmid Turnbull David McDowall Hunterston Strategic Development Area Neale McIlvanney Neale McIlvanney International Marine Science & Environment Centre (IMSE)
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Community Renewable Energy Oct Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Amber Monthly update - provide narrative Project Lead: Diarmid Turnbull 1. The CoRE Cabinet paper was presented to Cabinet on 4th October. Members approved the paper's recommendations, including a 12 month secondment of Professor Lawrence from UWS and match funded Senior Lecturer to assist with the development and delivery of CoRE. 2. The first Parnership Board meeting was held on 5th October. Members discussed and reviewed training and education opportunities to address the regional skills gap, demonstrator project themes, initial pathfinder proposals and scope for redesign of the Centre of Excellence. 3. The Board also agreed the key themes for specialist working groups, which will be established to develop and deliver demonstrator projects across themes such as energy generation and sustainable transport. The Project Team will now formalise each of the working groups and arrange initial meetings. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 31/05/2022 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 108 tbc FBC Demonstrator Projects 20/12/2023 Green AGD/O/2 - Construciton Jobs Created 88 tbc FBC Centreof of Excellence 30/05/2024 Green AGD/O/9 - Development Space Unlocked 3008 sqm tbc Phases Target date tbc tbc Phases Target date tbc tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Formation of Management Board 30/05/2023 Green FBC for CoRE Innovation Centre 30/05/2024 Green Engagement with Education and Skills Partners 30/08/2023 Green Commencement of Programme of Demonstrator Projects 01/02/2024 Green Programme Business Case 15/07/2023 Green tbc Review of CoRE Innovation Building 20/12/2023 Green tbc FBC for Demonstrator projects 20/12/2023 Green tbc Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyy y) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Construction costs, in particular cost of materials, significantly increases due to the pandemic. 4 5 20 • The project team will work closely with colleagues in F+PM and the design consultants to develop a cost effective but efficient building design. • An affordability cap has been set as part of the appointment of the Design Team to ensure we work within the parameters of the budget. 31/03/2030 Health Pandemic/UK threat to business security- the risk that a global health pandemic could shut down the country causing significant danger to life and the economic stability of the country. 3 5 15 • The Centre of Excellence will be a national centre for businesses within the energy and technology industry in times of crisis. • The Centre will provide support and direction for these businesses as well as providing lab space to allow for any technology testing (such as creating a new type of ventilator) to meet any demand. 31/03/2030 Failure to attract investors and new businesses to locate within the Centre of Excellence 3 5 15 • EAC will work collaboratively with specialist partners, including Scottish Enterprise and Energy Technology Partnership, from an early stage to identify and work with potential investors • The research carried out within the facility will be tailored towards particular technologies for which there is market interest in. • Wider Ayrshire Economic Growth Strategy will be put in place to ensure wider growth ambitions for Ayrshire are agreed and be articulated to stakeholders and investors. • At a local level, the Council will work with existing businesses and start-ups to explore how they can benefit from the project, a potential arm of which could be to locate into the research facility/incubator space 31/03/2028 Delays in approval of business case (due to COVID-19, feedback from both Governments may be delayed as their efforts will be focussed on critical services). Potential delays to project delivery may impact on milestone achievements resulting in potential reduction in realisation of benefits of AGD. 3 5 15 • Project Lead will work closely with PMO and policy leads within UKG and SG to support business case development and approval to an agreed timeline. • Ensure business case statistics, feedback and information is up-to-date while waiting for further feedback. 31/03/2027 Design Stages of the Centre of Excellence and the site take longer than expected with the landowner (also due to COVID-19, there could be further delay as staff working arrangements change). 3 4 12 12 • Clear deadlines and targets have been clearly set out with the landowner and design team • Ensure there is continuous collaborative working between the Council, design team and landowner. • Ensure there is consistent communication between Project Team and landowner. 31/03/2025 Delay in starting construction of the Centre (this could be down to delay in procuring the contract/consultant delays due to COVID-19 or delays from design stage) 3 4 12 12 • Ensure that the project team work closely with procurement to ensure tender process is efficient and successful contractor can be appointed. • Hold initial meetings/calls with consultant and provide some element of flexibility in timescales for the construction of the Centre. • Establish another risk register solely for the construction of the building. • Hold 2 weekly/monthly meetings/calls with consultant thereafter to ensure progress is made. 31/03/2025
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Hunterston Oct Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Green Monthly update - provide narrative Project Lead: Neale McIlvanney Recent demand analysis commissioned by Peel Ports Group and Scottish Enterprise has highlighted the importance of providing advanced manufacturing space for SME/incubator and supply chain users at Hunterston, in comparison to an innovation centre or large scale speculative commercial space. SE are currently leading on how this can be delivered with discussions at a recent Parc Board meeting in August 2023 and workshop with NAC in September 2023 to explore business case options. Options will be analysed with SE during October and November. However, the case for AGD investment at Hunterston is now likely to be more focused on enabling the delivery of commercial space. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/06/2024 Green AGD/O/1 - New Jobs Created (Direct and Indirect) tbc tbc FBC 28/02/2026 Green AGD/O/2 - construction jobs 1204 tbc Phases Target date AGD/O/3 - safeguarded jobs tbc tbc Phases Target date AGD/O/7 - New or upgraded roads/junctions/cycle pathways tbc tbc Phases Target date AGD/O/16 - Leverage Funding (incl LA, HE/FE, Private Sector and any other leverage £200,000,000 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC approved by Government 30/06/2024 Amber Construction/Project completed and Handover (RIBA Stage 5-6: Construction & Handover) 30/06/2029 Green Completion of detailed design - RIBA Stage 3 31/03/2025 Green Reporting: outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 31/03/2030 Green Completion of technical design - RIBA Stage 4 31/12/2025 Green FBC approved by EJC 28/02/2026 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 31/03/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yy yy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Unforeseen project complexities that require additional funding 4 4 16 • Provide Green Book compliant optimism bias allowances • Provide for contingency • Project monitoring will track potential impacts and create ability to respond Ground conditions and historical legacy of site infrastructure create major burdens for development 4 4 16 • Project team is working with Peel Port Group to understand the development issues/infrastructure/utilities impacting onsite re-development Concept not supported by Partners and evidence of investment/market support not forthcoming 4 4 16 • Project team/Peel Port Group/SE developing and promoting an investment model to secure major inward investment plus academic partners and industry • Dialogue being progressed around role, responsibilities and funding commitments • MOU signed between NAC/SE/Peel and wider strategic proposition around blue economy and Hunterston supported by partners Concept and Operational Management revised /amended 3 4 12 12 • Project team/Peel Port Group developing a partnership/investment model to secure inward investment/academic partners and industry Other Development/Investment/ Proposals impact on capacity/deliverability 4 3 12 12 • Project team/Peel Port Group seeking to collaborate with major partners to develop a clear investment strategy/masterplan and investment led project proposition for AGD • Peel Ports have gained planning approval of a site Framework to allow planning applications to be considered Project fails to secure necessary consents 4 3 12 12 • Project team is in early dialogue with key regulatory partners and stakeholders
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International Marine Science & Environmental Centre Oct Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Amber Monthly update - provide narrative Project Lead: Neale McIlvanney The initial MoU between NAC and University of Stirling (UoS) to develop a proposition for IMSE, is now advancing to Collaboration Agreement stage. Recent interest from the Field Studies Council (FSC) to invest in FSC Millport as part of IMSE, offers the potential of a tripartite Collaboration Agreement between NAC, UoS and FSC with the benefit of an existing operational partner and available land assets. A workshop has been arranged for October 2023 to develop the detail of the Collaboration Agreement, with the aim of partner approval by end of 2023, to enable progress of an OBC during 2024. In addition, partners will continue to explore supporting Ardrossan regeneration as part of the IMSE programme. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/06/2024 Green AGD/O/1 - New Jobs Created (Direct and Indirect) 75 tbc FBC 28/02/2026 Green AGD/O/2 - Construciton Jobs Created 58 tbc Phases Target date AGD/O/9 - Development Space Unlocked 1400 sqm tbc Phases Target date AGD/O/10 - Reduced and vacant derelict land 0.6 Ha tbc Phases Target date AGD/O/14 - Start-Ups 4 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC approved by Government 30/06/2024 Amber Construction/Project completed and Handover (RIBA Stage 5-6: Construction & Handover) 30/06/2029 Green Completion of detailed design - RIBA Stage 3 31/03/2025 Green Reporting: outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 31/03/1930 Green Completion of technical design - RIBA Stage 4 31/12/2025 Green FBC approved by EJC 28/02/2026 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 31/03/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yy yy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Unforeseen project complexities that require additional funding 4 4 16 • Provide for contingency • Provide Green Book compliant optimism bias allowances • Project monitoring will track potential impacts and create ability to respond Programme delay created within wider strategic delivery plan for Ardrossan 4 4 16 • Project team undertaking masterplanning process to identify all project requirements and spatial needs Concept not supported by Partners 4 4 16 • Project team developing a partnership model with leading academic partners and industry • Dialogue being progressed around role, responsibilities and funding commitments • An MOU has been signed to develop the project definition with University of Stirling Strategic need and consolidation in sector advises Co-Location with wider projects 4 3 12 12 • Project team developing a partnership model with leading academic partners and industry Concept and Operational Management revised /amended 3 4 12 12 • Project team developing a partnership model with leading academic partners and industry Project cannot secure necessary consents 4 3 12 12 • Project team in early dialogue with key regulatory partners and stakeholders to address any concerns
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Project Updates – Tourism Programme 30 September 2023 Project Name Project Lead Senior Responsible Officer Marine Tourism Kathleen Dow Neale McIlvanney Great Harbour Kasia Smith
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Marine Tourism Oct Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Amber Monthly update - provide narrative Project Lead: Kathleen Dow Marine Tourism Programme Business Case scope of change in progress to respond to ScotGov feedback and covering increased scale of the Cumbrae project, viability analysis of the Ardrossan Project and reduced scale of the Arran Project. Timeframes for submission and review of the updated PBC and Cumbrae OBC (target Dec 2023 to be discussed with PMO). Cumbrae Project - OBC complete to be submitted with updated PBC. Cumbrae Marina operator development and procurement plan and permissions and consents plan prepared and awaiting mobilisation upon approval of OBC. Millport Flood Prevention Scheme off-shore breakwaters under construction and to be completed by spring 2024, enabling the marina works to proceed. Investigations to remove the timber section of Millport Pier progressing with Harbours/Floods Teams, to align marina and pier interdependencies to minimise risks ie costs and time delays. Exploring opportunities related to the removal of Millport pierhead buildings and requirements of the marina onshore spatial needs and facilities. Arran Project - a re- scope of options with stakeholders has identified a technically and financially viable solution at Lamlash. This is under further development as part of the re-design of the Programme Business Case. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 31/12/2023 Green AGD/O/1 - New Jobs Created (Direct and Indirect) 30 tbc FBC 30/03/2026 Green AGD/O/2 - Construciton Jobs Created 81 tbc Cumbrae 30/03/2026 Green AGD/O/9 - Development Space Unlocked 6 Ha tbc Arran 28/02/2026 Amber AGD/O/10 - Reduced and vacant derelict land 0.1 Ha tbc Ardrossan 28/02/2027 Red AGD/O/13 - increase in visitors(day and night) 100000 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC approved by Government 31/12/2023 Green Construction/Project completed and Handover (RIBA Stage 5-6: Construction & Handover) 31/01/2027 Green Completion of detailed design - RIBA Stage 3 31/12/2024 Green Operating project (RIBA Stage 7) and reporting 30/07/2027 Green Completion of technical design - RIBA Stage 4 and issue of tender 30/08/2025 Green FBC approved by Joint Committee 30/03/2026 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 31/07/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Changes to capital costs or inappropriately quantified cost provisions or increasing costs that reduce scope of marina projects 5 5 25 • Detailed technical studies in place to inform design • Design team includes a cost consultancy and detailed assessment of contingency and optimism bias is in place • Regularly review viability of each project. Consider what is possible within budget. 31/3/26 - Dependent Upon PBC approval concluded at OBC - finalised in detailed at FBC Development agreement and market economy investor principle for Ardrossan fails to secure support 5 4 20 • Project team taking legal advice in terms of subsidy control and agreements will be based on commercial lease terms required for projects. 31/3/26 - Dependent Upon OBC approval concluded at FBC Site/ground conditions are inadequate to provide cost certainty 5 3 15 • Full SI/GI and bathy surveys will be undertaken at an early stage in project development Dependent Upon OBC approval concluded at FBC Agreement on technical approach to quays/pontoons and land connections cannot be agreed with stakeholders 5 2 10 10 • Development of design / layouts / connections advanced with stakeholders / partners. Dependent Upon OBC approval concluded at FBC Agreements including Development and Operating Agreements between commercial partners and community interest company cannot be secured 5 2 10 10 • North Ayrshire Council seeking to advance formal Development and Operating Agreement between partners/operators and agree a joint approach. Stakeholder engagement maintained throughout programme. 31/3/26 - Dependent Upon OBC approval concluded at FBC
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Great Harbour Oct Project Overall Status 2023 Green Project Update Project Scope Status Amber Project Budget Status Amber Monthly update - provide narrative Project Lead: Kasia Smith The Great Harbour Masterplan and related Consultation Report are completed and approval will be sought from Cabinet in Dec'23 and from Planning Committee in early 2024, following an elected members briefing in Nov'23. Consultants are working on RIBA Stage 3 design for Phase 1 Coastal Hub (Beach Park area) for completion and Gateway approval in early December. The Beach Pavilion building is the subject of a Market Feasibility Study to establish the viability of a re- development model with a community hub / restaurant. A procurement appraisal has been carried out regarding the appointment of consultants for the Phase 2 -Maritime Mile and for the contractor for the Phase 1 - Coastal Hub. The existence of title burdens related to the Harbour Master's Office (HMO) is impacting on progress of plans for the building. Notes of interest have been received from private food and drink operators and from a social enterprise for the HMO and these are being considered. A Memorandum of Understanding between the Scottish Maritime Museum and the Council is being prepared to formalise the partnership in order to progress Phase 3 of the Great Harbour - the Maritime Heritage Hub. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 25/06/2021 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 145 tbc FBC 31/03/2024 Green AGD/O/2 - Construciton Jobs Created 99 tbc Phase 1 FBC 31/03/2024 Green AGD/O/9 - Development Space Unlocked 9800 sqm tbc Phase 2 FBC 31/10/2024 Green AGD/O/10 - Reduced and vacant derelict land 6Ha tbc Phase 3FBC 31/03/2025 Green AGD/O/16 - Leverage Funding (incl LA, HE/FE, Private Sector and any other leverage £4,000,000.00 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status FBC approved by Joint Committee 31/03/2024 Green Statutory Consents 30/06/2024 Green Completion of detailed design - RIBA Stage 3 31/12/2024 Green Completion of technical design - RIBA Stage 4 30/05/2024 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 15/05/2024 Green Completion of Construction Tender 31/08/2024 Green Construction/Project completed and Handover (RIBA Stage 5-6: Construction & Handover) 31/10/2025 Green Internal sigh-off of FBC (NAC Cabinet) 30/09/2024 Green Reporting: outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 31/10/2026 Green FBC update to Joint Committee Phase 2 31/10/2024 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Increase in capital costs associated with changing scope or inappropriately quantified cost provisions 5 3 15 • Cost estimates based on current market • Detailed technical studies to inform design and a fully detailed/itemised cost plan • Project management established to monitor costs • Optimism bias built into costings • Future design team to include cost consultancy • Additional internal and external funding bias Economic downturn as a result of Covid-19 3 3 9 9 • Robust project management in place to analyse impact on this project and wider sector and focus will be placed on this project as an important element of the recovery agenda in Ayrshire • Project team will work with contractors to understand the impact of social distancing on the labour force but expected to be minimal given this is land based • Continue economic analysis and development of recovery plans will be implemented • Robust project scoping should continue to ensure the facility meets needs Project outcomes, including inclusive growth and reducing inequalities, fail to be delivered 4 2 8 8 • AGD PMO is currently working with project leads to develop a consistent approach to ensure inclusive growth, equalities and community wealth building outcomes are embedded in each AGD business case. This approach will ensure explicit commitment to how the project will achieve inclusive growth and reduce inequality Technical approach to quays/pontoons and land connections cannot be agreed with key stakeholders 4 2 8 8 Development of Partnership/Operator Plan and detailed GANTT Programme ensuring programme allows time for engagement and approvals • PPiP route minimises risks and ensures full engagement with statutory bodies and community • NAC in discussion with Harbour Authority • Development Briefs drafted for Great Harbour
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Project Updates – Digital Programme 30 September 2023 Project Name Project Lead Senior Responsible Officer Digital Infrastructure & Sub Sea Cable (TBC) Simon Yeardley Louise Reid
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Digital Infrastructure & Subsea Cable (TBC) Oct Project Overall Status 2023 Red Project Update Project Scope Status red Project Budget Status red Monthly update - provide narrative Project Lead: Simon Yeardley Following on from the Partnership board meeting held on the 7th of September where endorsement of scope option 5b was given by the board a change request will now be made to the (AEJC) in November 2023. Where option 5b has been identified as the preferred option, two funding scenarios will be presented: I) Scenario 1: Available funding is split amongst lead authorities based on their AGD contribution and settlement, with Lead Authorities prioritising how spend is then apportioned across AGD capital projects, or: ii) Scenario 2: Regional partners allocate funds and prioritise projects based on regional economic benefits realised. It is proposed that funding from the de-scoped Subsea Cable and Infill projects will be apportioned to in train AGD projects identified by the key SRO's as having key connectivity and infrastructure requirements and where there is a risk of stalling or failure to deliver due to lack of sufficient funding. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC tbc under rescope AGD/O/1 - New Jobs Created (Direct and Indirect) tbc tbc FBC tbc under rescope AGD/O/2 - Construciton Jobs Created tbc tbc Phases Target date AGD/OT/1 - Job levels (new and maintained) tbc tbc Phases Target date AGD/OT/3 - Digital Usage patterns tbc tbc Phases Target date AGD/OT/7 - Additional investment (incl Foreign Direct Investment) tbc tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Report on Re-scope exercise to Partnership Board 27/04/2023 Complete Joint Committee approve re-scope of project 22/05/2023 Complete AEJC approve re-scope of project (Mtg date tbc) 30/10/2023 Amber change management process applied 30/11/2023 Amber Project Completion 30/09/2026 Amber Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Cost overruns 2 2 4 4 • Rescoping exercise has concluded and identified a valid option that can be delivered by reprioritisation of current budget to in train AGD projects • Robust contract management in place • Appropriate procurement procedures followed and optimism bias built into business case 30/10/2023 Failure to reach consensus on project re-scope option 2 2 4 4 • Stakeholder engagement • Re-scope proposal scope 5b approvals and approved by Partnership Board via established AGD governance 30/10/2023 Resource availability 3 2 6 6 • Effective deployment of resource to support delivery of the project 30/09/2026
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Project Updates – Regional Skills & Inclusion Programme 30 September 2023 Project Name Project Lead Senior Responsible Officer Ayrshire Skills Investment Fund Laura Neill Neale McIlvanney Working for Healthy Economy
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Ayrshire Skills Investment Fund Oct Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Green Monthly update - provide narrative Project Lead: Laura Neill The FBC has been endorsed by SG and was approved by the Ayrshire Economic Joint Committee in August 2023. Plans for delivery are emerging through ASIF sub-committee with agreement on the Delivery Model with intention to consider proposals from Ayrshire College, University of the West of Scotland and Employer Grant applications in November 2023. The Employer Grants Programme was launched in October inviting employers to identify training requests to support priority groups within priority sectors. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/04/2023 Complete No of people benefiting from in work skills development 500 tbc FBC 30/06/2023 Complete No of people benefiting from pre-employment upskills 500 tbc People benefiting from accredited training 300 tbc No of businesses benefiting from employees with improved skills levels 300 tbc No of participants progressing to living wage opportunities 200 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC approved by Government 25/07/2023 Complete 1st annual review 30/06/2024 Green FBC endorsed by Government 25/08/2023 Complete complete mid-programme evaluation 31/03/2025 Green FBC approved by Joint Committee 07/08/2023 Complete End of programme/final drawdown 31/03/2027 Green Development of guidance for fund applicants 30/06/2023 Complete quarterly application deadlines Green 1st call for proposals 01/07/2023 Complete Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Project delays due to Covid-19 5 5 25 • Early analysis identifies that the need for this project may be greater as a result of Covid-19 • Continued economic analysis and development of recovery plans should be implemented and robust project scoping should continue to ensure the proposal meets needs Programme does not secure sufficient partner buy in to ensure an effective set of interventions are designed and funded 1 1 1 • Early establishment of Regional Skills Board with strategic oversight • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress Failure to deliver anticipated impacts across the region in terms of Inclusive Growth 1 1 1 • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress • The partnership will conduct a mid-programme evaluation to check the direction of travel is still correct Disadvantaged residents do not see tangible benefits from projects 1 1 1 • Applicants to the fund will be required to detail how delivery against inclusion targets will be assured • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress Inadequate project management results in failure to delivery agreed outcomes 1 1 1 • The Regional Skills Board will provide expert advice on what should be supported through the fund • Adopt programme and project management best practice • These arrangements will be reviewed on an annual basis to ensure they remain fit for purpose • The Steering Group will conduct a mid-programme evaluation and adjust project activity as appropriate
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Working for Healthy Economy Oct Project Overall Status 2023 Green Project Update Project Scope Status Green Project Budget Status Green Monthly update - provide narrative Project Lead: Laura Neill We continue to monitor progress to ensure effective delivery across Ayrshire. Working for a Healthy Economy continues to be delivered across Ayrshire to help individuals manage and improve their health to progress to or sustain employment. In September 2023 the following individuals were supported: • 45 individuals were supported in September 2023 • Of the individuals completing the services to date there has been a 26.9% improvement in overall health and wellbeing • On measuring anxiety, a 36.4% improvement in anxiety levels has been achieved • Depression levels experienced have improved by 45.3% We continue to monitor progress to ensure effective delivery across Ayrshire. A range of events and ongoing promotional activities has been undertaken to achieve the figures reported above. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 19/02/2021 Complete No of people accessing assessment & report 960 tbc FBC 22/02/2021 Complete No of people accessing full management support via telephone 1600 936 No of people accessing full case management support delivered face to face 3838 282 No of people returning to work 1157 77 Unemployed residents supported 4629 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Evaluation commences 30/06/2022 Green End of programme/final drawdown 31/03/2027 Green Year 3 targets achieved 31/03/2024 Green Year 4 targets achieved 31/03/2025 Green Year 5 targets achieved 31/03/2026 Green Year 6 targets achieved 31/03/2027 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impac t Likelihood Score AGD Status SG Status Mitigation Action Implementation: Over demand or lack of demand 5 5 25 • Proposed targets are based on delivery experience across Scotland and the experience of delivering a case management service in North Ayrshire recently • The proposal as it stands is designed to remove barriers to accessing this service. In the event of over demand, referral criteria can be set to reduce demand • Project Board has discussed geographical disparity between geographies and agreed mitigation action. Agreed to review again in October. Project delay and macro-economic impact of Covid-19 and recovery 5 5 25 • Early analysis identifies that the need for the project is unlikely to be diminished – in fact may be greater • Continued economic analysis and development of recovery plans should be implemented and robust project scoping should continue to ensure proposal meets needs Unforeseen complexities that require additional funding 1 1 1 • Provide for contingency • Provide Green Book compliant optimism bias allowances • Similar project has been delivered previously • Project monitoring will track potential impacts and create ability to respond National programmes are introduced which result in duplication 1 1 1 • Closely monitor national developments and build in flexibility to contracting arrangements to allow us to change course at short notice if national provision is introduced that duplicates provision. Failure to deliver anticipated outputs and outcomes. Failing to achieve more inclusive growth and/or reduce poverty by increasing the income of people in deprived areas or protected characteristic groups. 1 1 1 • Closely monitor national developments and have built in flexibility to contracting arrangements to allow us to change course at short notice to respond to programme impact • Covid-19 impacts on specific groups will be assessed. Early indications are that young people, females, those with health issues or disabilities will be disproportionately impacted by recession, therefore more targeted Implementation: End of project ‘cliff edge’ 1 1 1 • Would hope to influence the national policy around occupational health services, as a legacy of the programme Appointed contractor could be impacted negatively by Covid-19 1 1 1 • As part of procurement process, robust checks have been made on financial standing of delivery organisations
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Project Updates – Community Wealth Building Programme 30 September 2023 Project Name Project Lead Senior Responsible Officer Community Wealth Building Emma McMullen Neale McIlvanney
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Community Wealth Building Oct Project Overall Status 2023 Green Project Update Project Scope Status Green Project Budget Status Green Monthly update - provide narrative Project Lead: Emma McMullen The programme is progressing well having now surpassed the headline target of supporting over over 900 unique enterprises with CWB in the Ayrshire region. In addition to daily delivery of key programme outputs, the programme also supported a Meet the Buyer | Ayrshire event hosted in East Ayrshire during the Ayrshire Chamber business week to help progress the procurement pillar outcomes of the programme. Most recently, Fair Work Ayrshire coordinated and hosted a job fair at Ayrshire College which was attended by 385 jobseekers. 27 businesses collaborated on the day, including anchor institutions such as the NHS, Police, SF&RS, Ayrshire College, DWP, NAC and EAC, and wider business stakeholders such as Woodward, Spirit, Emergency One, TPS Weldtech and Green Home Systems. Looking forward, the programme is exploring options beyond March 2024 to ideally enable continued delivery of outputs and a streamlined approach to CWB through enterprise support in Ayrshire. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 12/02/2021 Complete CWB Officers & Action Plans in place - creation of CWB Locality Baselines 15 all officers in post FBC 22/02/2021 Complete Total enterprises engaged 920 956 Employers undertaking Fair Work Action Plans 90 124 Enterprises receiving financial assistance 265 245 New enterprises supported 96 136 Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Fair work inspiration week (inl RLW & Disability Awareness) 30/11/2023 Green Ayrshire CWB Enterprise Awards & Programme Achievements celebration 30/04/2024 Green Fair work job fair 28/02/2023 Green Monthly Programme Steering Group Meetings 31/03/2024 Green 500 Ayrshire enterprises supported by the CWB programme 31/03/2023 Green Reporting to PMO, Ayrshire REP & EJC members 31/03/2024 Green Programme case study showcase - SG visits 31/05/2023 Green Annual report 31/03/2024 Green 1000 Ayrshire enterprises supported by the CWB & FWA programme 31/03/2024 Green Project end date/final review/final report/final drawdown 31/03/2024 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Imp act Likelihood Score AGD Status SG Status Mitigation Action Project delays due to Covid-19 4 4 16 • Early analysis identifies that the need for this project may be greater as a result of Covid-19 • Continued economic analysis and development of recovery plans should be implemented and robust project scoping should continue to ensure the proposal meets needs Programme does not secure sufficient partner buy in to ensure an effective set of interventions are designed and funded 1 1 1 • Early establishment of Regional Skills Board with strategic oversight • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress Failure to deliver anticipated impacts across the region in terms of Inclusive Growth 1 1 1 • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress • The partnership will conduct a mid-programme evaluation to check the direction of travel is still correct Disadvantaged residents do not see tangible benefits from projects 1 1 1 • Applicants to the fund will be required to detail how delivery against inclusion targets will be assured • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress Inadequate project management results in failure to delivery agreed outcomes 1 1 1 • The Regional Skills Board will provide expert advice on what should be supported through the fund • Adopt programme and project management best practice • These arrangements will be reviewed on an annual basis to ensure they remain fit for purpose • The Steering Group will conduct a mid-programme evaluation and adjust project activity as appropriate
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Appendix 2 - Quarterly Communications Report as at October 23 Project Quarter 2 Review Quarter 3 Plans Spaceport Initiative RIBA Stage 3 design complete. Discussion ongoing with regards to land acquisition and operating model. No media proposed until further clarity reached on project. Aerospace and Space Innovation Centre ( ASIC) Appointed Ironside Farrar as consultant to create OBC for ASTAC. Appointed Project lead from within SAC Economy & Regeneration team. Agree timeline for OBC submission. Cabinet paper sign off. Key roles/partners identified. Establish steering group with SAC/Consultant/AC. Define a viable ASTAC proposition and and agree the Definition/Scope/Objectives. Agree Roles/ Responsibilities. Work supporting College business plan & Land deal with GPA underway. Commercial Space Prestwick Site clearance now complete and detail design development ongoing. No media proposed until further clarity reached on project. Prestwick Infrastructure Progress is being made towards completion of the STAG. Following approval to discard the history phased roads enabling projects a further report is now prepared and lodged for presentation to cabinet detailing the work undertaken to date. November: Community council meeting with Monkton residents where reports will be delivered on traffic calming exercise outcomes. HALO Kilmarnock Captured in the Monthly Report Captured in the Monthly Report Ayrshire Engineering Park (Moorfield) Two consultation events took place in October to share proposals to merge these 2 projects on the Moorfield site as Ayrshire Innovation Park (AIP). Branding options have been created for AIP. Communications activities included press, social media and email bulletins to encourage participation. A short survey was hosted on the AGD website for the duration of the consultation. https://lnks.gd/2/2TzMJJq Findings from the consultations will help to inform the planning application. Ayrshire Manufacturing Investment Corridor ( AMIC)
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i3 Flexible Space (Expected Completion Summer 24) Press opportunity to mark the construction start of the project has been pushed back to mid October 23. October: Photo call is being arranged in November to mark the start of construction at a ground breaking event where key stakeholders will be invited to attend this development milestone. i3 Digital Processing Manufacturing Centre (DPMC) Phase 1Comms Led by NMIS: Media activity set out below 4 August Visit by Parliamentary Under Secretary (Scotland Office) John Lamont MP visited DPMC and met with Booth Welsh. October: Press Release to be issued highlighting Community Wealth building in action. Local Kilwinning business Ailsa Reliability Solutions will be the supplier of technical support for the DPMC demonstrators. Filming being undertaken to develop an "explainer" video. This will tell the story about the new Digital Process Manufacturing Centre in. The video will be hosted on NMIS and partner websites and used within social media posts and presentations and at events. February: Date of the official opening of the centre has been agreed 21st Feb 2024 - event planning taking place to organise arrangements DMPC represented at PharmaTech Integrates 2023 as part of the NMIS / CPI presence Community Renewable Energy Project ( CoRE) Scope of project has been reviewed and refreshed, and recommendations were accepted by EAC Cabinet in September. Press release prepared and issued to promote the update. https://newsroom.east- ayrshire.gov.uk/news/renewed-focus-for-community- renewal-project Hunterston Strategic Development Area Work being carried out to finalise scope of offering. Communications activities will be aligned to this work, when required Work being carried out to finalise scope of offering. Communications activities will be aligned to this work, when required
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International Marine Science and Environmental Centre (IMSE) Work progressing to complete OBC by 2023 including extension to MoU to a Collaboration Agreement. This will be based on the concept of Clyde monitoring array. Potential media opportunities include: the signing of a tripartite Collaboration agreement with University of Stirling and Field Studies Council expected Autumn. Refreshed partnership agreement report to be presented to cabinet in autumn. The Great Harbour, at Irvine Harbourside and Ardeer The team are in the final stages of developing a detailed masterplan for the project, following extensive consultation with the public. Planning permission for the project will be being sought by the end of 2023. The next quarter will see technical and operational progress on this project - with minimal public communications required at this stage. Potential media opportunity include: the publication of the consultation results following the conclusion of the harbourside masterplan consultation, planning committee decision on plans expected November 24. Marine Tourism The next quarter will see the development of the Marine Tourism Programme Business Case and outline business case for the Cumbrae Marina - minimal public communications will be required. Any communications required about the wider Marine Tourism programme will be developed in consultation with colleagues. Potential media Opportunities: Marine Tourism Programme Business Case and Outline Business Case for the Cumbrae Marina development expected to be submitted to Government by December 23. Supporting communications will be provided in the works associated with the Millport Flood Protection Scheme breakwater development and coastal flood protection works. Digital Subsea Cable and Digital Infrastructure None to report None to report
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Working for a Healthy Economy Further promotion will be run on social media including a video series created by Salus. We will explore how we can reach more employers as there is potential to increase referrals here, looking at further work with Business Teams to promote to their clients and other contacts. Ayrshire Skills Investment Fund We will continue to work with the Project Lead to confirm the next steps for this project. A communications plan will be developed to meet project outcomes. Press release issued on £3 million training fund to help develop skills and employment opportunities to drive forward the Ayrshire economy. In September a press release was issued to announce the £3m Ayrshire Skills Investment Fund. Following approval (expected around 9 Oct) we will launch and promote the employer skills grant to local businesses across Ayrshire. Presentation to be given to Ayrshire Economic Partnership Joint Committee Sub-group on Communications Plan to promote fund to key audience groups. Community Wealth Building Fund We will support the Programme Manager as required to promote the South Ayrshire event. We will also look at the wider social media, PR around community wealth building and identify some key highlights and case study features to promote during Q2. South Ayrshire event was held on 27 Sept with over 160 attendees from business and organisations across Ayrshire. The video series has now been completed with the addition of a South Ayrshire film which was premiered at the event. During Q3 we will organise social media promotion and PR (where appropriate) to promote the support available to businesses and showcase the work of the AGD programme to date. We are also investigating the possibility of recording podcasts with businesses from across Ayrshire who have benefitted from CWB support. This work will start in Q3 and continue into Q4.